Blackburn brewery starts to see benefits of investment programme

Blackburn brewery and pub owner Thwaites saw a six per cent increase in profits last year.

The Lancashire business said it has started to see the benefits of a major investment programme put into place in 2016.

Turnover for the year was £92.2m – an increase of 9.2%.

And operating profit increased by £800,000 or 6.6% on last year to £12.9m.

The brewery has been investing in core pubs and hotels while selling its poorer quality properties.

Alongside the investment programme Thwaites acquired Langdale Chase Hotel, on the banks of Lake Windermere. As a result net debt increased from £47.6m to £63.7m.

Chairman Ann Yerburgh said: “The strategy of the company is to own and operate freehold properties and offer superb hospitality in outstanding properties in great locations.

“Our business is diverse and operates in several different markets and we believe that this diversity provides some resilience over the course of the business cycle.”

She added: “Investment into our pubs is focused on creating sustainable, long term businesses with multiple income streams and strong food offerings.

“Where there is the potential and the demand we invest in letting bedrooms for our pubs to create an additional income stream to their restaurant and drinks businesses.”

Thwaites new brewery in Mellor Brook is nearing completion and will start to brew craft beers as well as the traditional ales that Thwaites is known for.

The brewery said it is looking to add to the number of hotels that it owns through acquisition and new build.

Mrs Yerburgh added: “We have been on site for much of the year building our new offices, brewery and stables in Mellor Brook and our plans to relocate from Blackburn are well advanced.

“We expect that the site will be handed back to us in July and that we will move in August.

“Once we move to Mellor Brook, our old brewery site, much of which is derelict and in an increasing state of decay, will be demolished.

“This will have the benefit of removing the significant rates liability whilst plans for its redevelopment or sale are finalised.”

During the year Thwaites sold 17 pubs from the bottom end of is estate.