Thwaites hit by soggy summer of 2012
DANIEL Thwaites, the Lancashire brewer, pub and hotels operator, has reported a 15% fall in operating profits after a challenging year which saw beer sales hit by the soggy summer of 2012.
The Blackburn-based group said turnover in the year to the end of March fell 0.6% to £136.4m as its growing Inns and Hotels business partially offset a 1.5% fall in sales to £97.1m at the pubs and brewing division.
Before exceptional items of £8.4m, relating to a £1m redundancy programme at the brewery, a £700,000 pensions deal, a near £9m provision for the settlement of interest rate swap products and a £2.4m profit on the sale of a London commercial building, operating profits fell to £10.3m from £12.4m last year.
Chairman Ann Yerburgh said: “The last year has been a difficult one, due to poor weather and the continuing low consumer confidence. We have taken decisive action to deal with the issues that face us, in order to put us in a better position for the future.
“We remain cautious but optimistic about our future prospects and hope to be able to announce progress with our new brewery project over the coming year.”
During the year Thwaites decided to exit the low-margin contract brewing and packaging business. It also reorganised its 300+ estate of tenanted pubs, selling 14 properties “at the bottom end” of its portfolio and acquiring three “good quality” locations including the Little B in Sale.
The group said it had invested around £3m in 52 development projects at its pubs in the last year.
