The acquisition of Seagram's wine and spirits business would have exposed us to a complex integration process that could have disrupted the momentum we have built up

Graham Hetherington Finance Director

"Economic conditions are not as attractive as they were a year ago," he acknowledged.

"But we are confident we will see the first half trend continue into the second half."

Over the past year, Allied's shares have outperformed the UK market by 45%.

Targeted acquisitions

The company which owns the Wacky Warehouse fast food restaurants, the Firkin Brewery, and makes Beefeater gin now insists it is happy it did not buy Seagram's drinks empire late last year.

"The acquisition of Seagram's wine and spirits business would have exposed us to a complex integration process that could have disrupted the momentum we have built up," said finance director Graham Hetherington.

Allied Domecq pulled out of a bidding battle for Seagram's drinks business in December, leaving its competitor Pernod Ricard to acquire its brands.

Allied then bought the champagne brands Perrier Jouet and G.H.Mumm, as well as the US distribution rights to Stolichnaya Russian vodka.

"We chose to go down the route of making far more targeted acquisitions," said Mr Hetherton.