Wolverhampton & Dudley Breweries is to end more than a century of tradition by changing its famous name to Marston's – if the surprise move is approved by shareholders.

The proposal was unveiled yesterday as the UK's largest regional brewer posted a 13 per cent rise in underlying pretax profits to #101.5 million for the year to September 30.

Wolverhampton & Dudley – a name which dates back to 1891 – will be ditched on January 8 to reflect the group's "national spread of business".

Along with the change of company name, its trading divisions will become the Marston’s Beer Company (formerly WDB Brands); Marston’s Inns and Taverns (managed pubs, formerly Pathfinder Pubs); and Marston’s Pub Company (tenanted and leased pubs, formerly The Union Pub Company).

Chief executive Ralph Findlay said: "Our new name reflects the fact that we have become a national business in recent years.

"It will also enable us to promote more clearly to our customers across the whole business our traditional values and the product and service quality associated with the Marston’s brand.

"Marston’s is one of the strongest beer brands in the UK with its growth being supported over recent years by increased marketing investment, including becoming the ‘Official Beer of England’ through our sponsorship of the England and Wales Cricket Board."

W&DB – which plans to return some #100 million to shareholders in its current financial year – took over Marston's, based in Burton-upon-Trent, in 1999 after a fierce battle.

Commenting on the change of corporate title, chairman David Thompson told shareholders: "This change of name reflects our development, but it also represents an opportunity to emphasise our tradition, heritage and values, and to better promote our pubs across the country.

"The name change will be effective immediately following shareholder approval."

Over the past 18 months W&DB has clinched a series of takeover deals, swallowing up Burtonwood, Jennings Brothers, English Country Inns and Celtic Inns.

However, the group said it now believed there was "reduced opportunity" to create investor value through further acquisitions.

Mr Thompson said that during the year W&DB had explored a number of takeover possibilities.

"However, competition for acquisitions has recently pushed pricing to very high levels and, in our view, the opportunity for creating value for our shareholders through acquisition has been limited.

"We have developed a successful strategy, however, to accelerate our organic development, particularly in Pathfinder Pubs where we have a good track record of new pub openings and a pipeline of sites, allowing us to be confident of next year’s development plan."

Meanwhile, the group, which saw turnover climb 7.1 per cent to #595.5 million, is preparing to meet the impact of the smoking ban in England and Wales due to come into force next year.

Mr Findlay said: "We are well prepared, and by the time the smoking ban is introduced we will have invested #20 million in outside areas."

He added: "Based upon the early evidence from the ban introduced in Scotland in March 2006 and from Ireland where it was introduced in 2004, we anticipate that while there is some risk to drinks sales and gaming machine income, there is also an opportunity to increase food sales and attract more customers."

W&DB is to pay a final dividend of 28.23 pence per share, bringing the total dividend for the year to 42.75 pence per share, an increase of ten per cent on the previous year. Shares closed up 66 at 1647p.

* How do you feel about losing the name of Wolverhampton & Dudley Brewery? Does it matter as long as the beer tastes the same? Give us your opinion at the Post forum.