Shares in pub and restaurant group Marstons (LON:MARS) poured higher as it reported continued "profitable progress" for the 41 weeks to July 18.
Investment in new build restaurants and premium pubs was in line with plans and its strategy is well-suited to leveraging market growth in local, premium and craft beers, the group said.
Plans to introduce a £9 an hour living wage by 2020 in the UK budget will increase wage costs but the group had expected increases to be above the rate of inflation, it noted.
In destination and premium, like-for-like sales were 1.7% up on last year, including like-for-like food sales growth of 1.6% and like-for-like wet (drink) sales growth of 1.6%.
The operating margin was slightly above last year and Marstons said it remained on track to complete 25 new-build pub restaurants in the current financial year.
Chief executive Ralph Findlay told investors: "We have good visibility over our site pipeline and remain focused on securing further good sites for our future growth.
"These investments, together with the disposal of smaller wet-led pubs and the growth of franchises, have successfully transformed our business over the last three years.
"In brewing, the post-acquisition integration of Thwaites' brewing business is now complete and has gone well. Our strategy is well-suited to leveraging market growth in local, premium and craft beers, and the increasing importance of the off-trade."
The company added that the additional cost of meeting the higher living wage target by 2020 will mean that wage costs will be modestly greater than it had expected.
But it said the impact was mitigated by the fact that it had anticipated increases above the rate of inflation, and by the lower rate of corporation tax it will have to pay from 2017.
Marstons shares added 3.16% to 160p.