BREWING and leisure giant Whitbread has revealed prospects are on the up.

The trading statement came as the firm's bid to take over more than 3,000 Allied pubs hots up.

Whitbread chairman Sir Michael Angus said profits at the group - which employs more than 700 at its Samlesbury and Shadsworth, Blackburn sites - were progressing in line with expectations.

In a statement prior to the group's annual general meeting, Sir Michael said: "Trading prospects for both the existing Whitbread businesses and those we intend to acquire are becoming more positive as evidence grows that consumer confidence is returning in response to an improved economic outlook."

Results for the year to date remained "firmly in line" with the group's expectations.

Whitbread is widely expected to up its £2.4 billion all-share bid for Allied Domecq's retail business in an attempt to trump a £2.7 billion cash deal tabled by Punch Taverns.

Whitbread has said that with the potential savings and other elements of its bid, it actually values the Allied business at £3 billion.

If Whitbread was successful the group would have to sell or float off its brewing arm which employs 550 at Samlesbury.

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