FIRST-HALF profits at the Whitbread beer, pubs and restaurant combine increased 9 per cent to £177 million sterling on turnover up 13 per cent at £1.5 billion. Whitbread is responsible for brewing and marketing Murphy's stout in mainland Britain.

The chairman, Sir Michael Angus, said like-for-like sales growth was 5 per cent, with the balance coming from acquisitions and new outlets. Profits were slightly enhanced by reduced pension contributions.

Sir Michael said the interim trading results confirmed that consumer spending was "on an upward trend - and I expect this to continue".

"Competition, particularly in the eating-out market, remains strong and, at the same time, customers' expectations in terms of value for money and quality of service have grown markedly," he added. The interim dividend is up 9 per cent at 6.25p