REGIONAL brewer Wolverhampton & Dudley (W&DB) is on track to report a 17 per cent rise in full-year profits.

Wolves, which fought off a £485m hostile takeover bid from Pubmaster, of Hartlepool, last month, also said it was on course to return £100m to shareholders by the end of the year.

The cash is the first part of a £200m payout and was a carrot for investors during the lengthy Pubmaster battle.

Wolves, which is selling its Camerons Lion Brewery, in Hartlepool, to Castle Eden, has already raised £44.5m by selling 68 of 170 pubs up for disposal.

Updating shareholders before its results for the year to September 29, chief executive Ralph Findlay said: "This has been a year of significant progress for W&DB. Our current trading is satisfactory, and we expect to meet our previously forecast profit before taxation, exceptional items and goodwill amortisation of £76m - 16.9 per cent higher than last year."

Like-for-like sales in Wolves' retail division for the 47 weeks to August 25 were 2.2 per cent ahead across the arm's 550 managed outlets.

Sales dipped by 1.2 per cent during the same period in its tenanted pubs division, but Wolves said trading had improved since, with sales up 1.2 per cent in August.

Wolves brews beers including Harp Irish lager and Pedigree Ale.