The family brewer and regional pub operator says it saw a ‘strong start to the year’ with periods of good weather and the men’s football World Cup delivering brisk trade.
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Turnover for the six months ended 30 September 2026 was £69.3m, a 4% increase compared to the same period last year of £66.7m.
Operating profit rose from £10.1m to £11.2m, attributed to the profit on disposal of a development site and the combined performance of Langdale Chase Hotel, returns on recent investments in properties and price increases, which were applied ‘cautiously’.
Performance and investment
The group’s pubs performed well during the period, though it notes that the war in the Middle East has had a negative impact on consumer confidence and year-on-year beer volumes for the period were flat.
Inns performed strongly due to the benefit of major refurbishments last year with sales up 4% and profits for the division increasing by 6%.
The group’s hotels echoed the performance of its inns with room sales up 6% year-on-year and health club memberships growing 7%.
However, Thwaites says turnover across the more discretionary areas, such as food, have been weaker.
It points to signals that people are eating out less, which it believes is a result of a combination of factors, in part due to the total cost of an eating out occasion and in part to people eating less.
As a result, the group is adapting its menus to cater for this by providing greater value for money and more flexibility.
Net debt on 30 September 2026 was £68.7m (2025: £66.7m); an increase of £2.0m compared to last year, and up £1.0m from £67.7m on 31 March 2026.
No acquisitions were made, though the group did invest £9.9m in its own properties.
Major investment schemes were completed at Thorpe Park Hotel & Spa, to create a FYR restaurant and bar and bedroom refurbishments at the Lister Farmhouse, Malham.
Meanwhile, a new beer garden scheme was delivered at the Crown, Pooley Bridge, helping it to deliver several record weeks sales over the summer.
Two pubs were sold during the period. Total proceeds from these disposals of £2.3m, making a profit on disposal of £0.8m.
‘Several headwinds’
The business says it has comfortable headroom against total banking facilities of £82.5m and is trading well within it banking covenants.
“Whilst we continue to face several headwinds, none of which are unique to us, the company has performed well and has several opportunities to invest for the future, create opportunities and new employment, particularly for young people, and contribute to the growth of the economy,” says Richard Bailey, Thwaites chairman.
“We are mindful of the cost of delivering investment projects with elevated energy prices and high inflation. We would like the government to listen to business and pursue policies to address the structural increases in costs of the past decade which have eroded margins and the ability to invest in growth and employment.
“A strong start to the year has tailed off into the weaker months of September and October and we are cautious about the outlook for the rest of the year, hopeful that a period of stability can be re-established after the budget to help restore business and consumer confidence.”
- This story was originally published on the MA’s sister site, MCA, here.
