Lancashire pubs group toasts sales and profits boost as momentum continues

Blackburn-based brewer, inns hotels and spas, and pubs group, Daniel Thwaites, toasted a strong year of trading, with revenues and profits increasing, despite difficult conditions.

In the year to March 31, 2023, turnover increased by 13.3% to £108.8m, while pre-tax profits of £15.1m were up from £12.7m the previous year.

Net debt stood at £66.7m, up from £61.6m a year earlier.

The board has recommended a total dividend of 3.15p per share, a 43% increase on the previous year’s 2.2p payout.

Richard Bailey, chairman of the 216-year-old Lancashire business, said the results were delivered against a backdrop of a disruptive war in Ukraine and higher inflation.

He said: “After a strong start in the first half of the year, the environment became significantly more difficult in the second half.

“Despite reasonably strong increases in top line sales, increased utility costs and rising prices across a broad spectrum of goods, together with a very poor Christmas, meant that it was a struggle to convert sales to profit during the quieter months.

“In recent years the business has become more orientated towards the summer months and more weather reliant and last year that certainly played an important factor.

“The winter was, overall mild, however, late winter was characterised by a prolonged period of colder and wet weather which did not kick-start the traditional spring uplift in business until after Easter.”

During the year the group sold four pubs and two ancillary properties for a total of £3.1m, generating a profit against book value, after disposal costs, of £1.4m.

Looking ahead, Mr Bailey said: “It seems that inflation should ease this coming year, energy prices are dropping fast in the spot markets and we are seeing evidence of a plateauing in food and other costs.

“We have opportunities to convert price decreases into our own cost prices and will work hard to grow our sales whilst delivering margin recovery this year.”

He added: “The factors that have shaken consumer confidence are going into reverse; for the moment recession has been avoided and employment numbers are strong.

“Our properties are well invested and better staffed than they have been for some time and the corporate and short break domestic leisure markets are showing good bookings for the summer. We are seeing strong performances in some of our pubs and as a result we look to the coming year with cautious, but increasing, confidence.”