Thwaites survives ‘toughest’ year
HISTORIC regional brewer has faced the “toughest trading conditions for many years”, according to newly-filed accounts.
The 200-year-old Blackburn business said it had been hampered by the global financial crisis, the UK recession, a continued decline in volumes and “persistent” government intervention.
Turnover during the year to March 31, dipped 2% to £158.5m while pre-tax profit fell by 9% to £9m. The brewery division experienced a 2.3% sales decline while its Shire Hotels arm saw a 0.6% decrease.
The harsh trading conditions prompted a reorganisation at the group which led to the loss of around 80 staff and incurred exceptional charges of £2.3m.
Ann Yerburgh, chairman and a member fo the founding Thwaites family, said she regretted the redundancies but stressed it was necessary, “to underpin and secure our successful future”.
Net debt at the group decreased by 4.4% to £136m and Ms Yerburgh said Thwaites would continue to cut its debt levels. This plan has prompted the board to scrap the final dividend.
The business spent nearly £10m during the period upgrading its 423-property pub estate and investing in new equipment. It spent a further £1.3m on its nine hotels. It also sold 17 properties, generating £4.7m of revenue.
It is currently in talks over the sale of its most high profile hotel, the Stafford Hotel in London. The move has attracted criticism from institutional investor Guinness Peat which says Thwaites is willing to sell for £75m – £25m less than Guinness Peat believes it is worth.
No one at the company could be reached to discuss the figures.
