Daniel Thwaites has reported interim results for the six months ended 30 September 2023, with turnover for the half year at £60.3m.
This is a 4% increase compared to £57.9m the prior year.
The company, which operates more than 300 hotels, conference venues, inns, spas, lodges and pub, said its diversified portfolio has turned in a ‘solid performance’ despite volatile markets.
Pubs got off to a strong start in spring and had a strong September due to the weather, but a wet spell in July and August resulted in beer volumed down 1% year on year but ahead on contribution.
Inns performed ‘very strongly’ over the summer months, with sales up 10% on last year and profits up 12%. The summer saw an improved staycation market as cost pressures encouraged people to opt for short breaks in the UK, resulting in strong occupancy and room rate growth in leisure locations.
Hotels and spas delivered ‘steady growth’ and are up 2% year-on-year on a like-for-like basis.
The business further reported an operating profit of £8.8m compared to £9.9m last year, attributed to the impact of property disposals. Underlying operating profit before the impact of disposals remained flat year-on-year at £8.6m.
Net debt at 30 September 2023 was £70.6m, an increase of £9.5m compared to last year. The business has comfortable headroom against total banking facilities of £82m and is trading well within its banking covenants, according to the update.
Daniel Thwaites has continued to divest of pubs that no longer suit its requirements, with six pubs and two ancillary properties sold during the period, with total proceeds of £2.5m and profit on disposal of £0.2m.
It has made no acquisitions during the period but continues to look at opportunities for high quality properties.
