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Pub owner and brewer Marston's has reported a dip in annual pre-tax profits after a number of its outlets were flooded this summer.

The company, which owns the Pitcher & Piano and Taverners Carvery chains, confirmed its underlying profit before taxation was £98 million for the year to September 29th – down from the £101.5 million reported for the previous 12 months.

Marston's had warned in an October trading update its profits for the year would be compromised by flood repair costs. Around 150 of the company's pubs were hit by flooding which engulfed parts of the country in June and July, forcing some sites to close.

The pub group also drew attention to the impact of the "unseasonably" wet weather on its trading, stressing sales last year benefited from good summer weather and the football World Cup.

Nonetheless, Marston's said it had achieved "good results in a challenging environment" – which included the introduction of smoking bans in England and Wales.

The company said a well-planned £20 million investment programme in over 90 per cent of its pubs with outside areas had contributed to the "robust" performance reported by its managed and tenanted pubs.

Marston's said its turnover increased by 9.6 per cent to £652.8 million over the year, with its performance including the acquisition of Sovereign Inns and Eldridge Pope in January this year and the takeover of Ringwood Brewery in July.

Like-for-like sales within the firm's managed pubs increased by 4.6 per cent, boosted by a 13.3 per cent rise in food sales. Operating profits also increased within its pubs run by independent landlords.

However the value of sales for the group's brewing business, which makes the company's flagship Pedigree bitter, fell to £84.1 million – down from £86 million in 2006.

Looking ahead, Marston's chief executive Ralph Findlay struck a note of caution.

"We remain cautious about consumer confidence, regulatory cost pressures and the short-term impact of the smoking ban," he said.

"We are, however, well positioned to continue to exploit current trends, including the continuing growth in casual dining," Mr Findlay added.