Mitchells of Lancaster, the pub and hotel operator, has cut its debt and seen turnover rise 5.1%.

The Lancashire based company cut its total debt from £16.8m as of February 2013 to £10.8m now.

It reported turnover of £9m with gross profit up 10.6% to £5.9m for the year ending 26 February 2014, with operating profit down 14.1% to £1.1m.

The company said it wanted to place on record its appreciation for the commitment of its staff “during a challenging time for the pub industry”.

It said: “Food and accommodation income streams are proving to be increasingly important and we see this trend continuing in the medium term.

“Within our managed houses we have seen strong growth in food, more so at our destination pubs where spend has increased. We are delighted by the performance of our fledgling Tap House craft beer concept, which we believe has the potential for roll out.”