Pub chain and brewer Marston’s today blamed losing money on property for a drop in annual profits of 13 per cent.

But the Wolverhampton-based company said its focus on family-friendly, food-led pubs was paying off with like-for-like sales rising 3.1 per cent in the last two months.

The company, which has 2,200 pubs in England and Wales and brews cask ales including Pedigree and Hobgoblin, said profits had dropped to £70.3 million.

Marston’s said the improved sales trend reflected value-for-money offers and its F-Plan strategy, which has seen the company focus on “food, families, females and forty/fifty somethings”.

With Marston’s looking to capitalise on longer term trends towards more eating out, food sales now account for 38 per cent of revenues, up from 27 per cent in 2004.

Having raised £165.5 million from shareholders in a rights issue in July, the company plans to build 60 pubs over the next three years.

As well as 496 managed pubs including Marston’s Tavern Table, Two for One and Pitcher & Piano, the chain’s estate features 1,688 tenanted and leased pubs.

It said operating profits for the division fell seven per cent to £81.8 million, including about £3 million of additional support costs for licensees. Average profit per pub reduced from £51,000 to £48,000, although Marston’s said it was working to improve trading in weaker pubs.