BLACKBURN brewery Thwaites has maintained its overall operating profit after tax and slashed its debts after selling most of its beer division to Marston’s in April.

Chairman Ann Yerburgh reported an ‘excellent first half of the year’ in its figures for the six months up to September 30.

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The highlights of its interim report are:

  • Turnover for continuing operations up four per cent to £41.8million compared to 2014’s £40.1million;
  • Overall operating profit static at £7.1million but up 21 per cent against £5.8million for its ‘continuing’ operations for the same period last year;
  • Profit before taxation up 217 per cent to £5.7million compared to £1.8million for the first six months of 2014;
  • Earnings per share of 7.2 pence compared to 2014’s 1.7pence; and
  • Net debt £29.1million down from 2014’s £59.4million after the sale of its main beer operations to Marston’s for more than £25million.

Now, only small craft ales are produced in Blackburn. Thwaites’ two biggest brands, Wainwright Golden Ale and Lancaster Bomber, have been produced at Marston’s Wolverhampton base since 2013.

A spokesman for the company said plans to move the remaining brewing operations from Blackburn’s 200-year-old town centre Star Brewery to Sykes Holt at Mellor Brook, just off the A59, remained ‘on hold’.

A review into the planned move was launched by the company in August after concerns were raised over ‘significant infrastructure costs’ to develop the new site by company officials. Other undisclosed locations were also being looked into.

Mrs Yerburgh said in the report: “Despite the disposal of the major part of our Beer Co to Marston’s we have achieved operating profits at the same level as last year, and when the impact of lower interest costs is taken into account, we have moved forward on a profit before tax basis.

“We had a strong start, helped by some good weather taking us into the key summer months.

“Despite no period of sustained sunshine during the summer holidays, our pubs and inns traded well through the key July and August period with increases in sales in all areas. The provincial hotel market has shown pleasing growth, building on progress made last year. An improved economic climate has meant that we have seen growth in sales at almost all of our hotels.”

She revealed three hotel purchases: The Crown in Pooley Bridge in the Lake District, The Royal in Heysham, and The Boot and Shoe south of Lancaster.