Historic brewer and pub and hotel owner Daniel Thwaites surged back to making a half-year profit and its turnover jumped by almost 120% as it continued its recovery from the height of the Covid-19 pandemic.
The Lancashire-headquartered firm, which has an estate of more than 300 freehold properties comprising pubs, inns, hotels and spas as well as its craft brewery, has reported a pre-tax profit of £7.5m for the six months to September 30, 2021, up from a loss of £5.5m during the same period in 2020.
Its turnover also increased from £21.8m to £47.8m while the firm's net debt reduced by £17.4m to to £61.4m.
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The half-year figures come after the company released its full-year accounts in September which revealed more than 170 jobs were lost as its turnover slumped by £66m and it slid to a pre-tax loss during the prior 12 months.
Chairman Richard Bailey said: "All credit must be given to our teams across the business for their success in making the most of the opportunity that has presented itself since re-opening in the spring.
"Our decision to reinstate quality cues within our properties at the earliest opportunity and remove measures that constrain our operational capacity has been vindicated by strong trading and an excellent set of interim results.
"Our conservative approach and a focus on our balance sheet, in particular in reducing our level of net debt puts the business in a strong position to face into a winter with lingering Covid cases and consequently potential Government reactions.
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"There are many headwinds, largely outside our control, which are creating a level of uncertainty as we look to the future.
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"The lack of availability of new team members is disrupting both our ability to fully man our properties as well as our supply chains.
"Inflation is rising more quickly than in recent years with the National Minimum Wage set to increase by 6.6% next April.
"Lastly, in the next six months we will seethe withdrawal of Government support, whichhas been critical in achieving this set of interim results.
"The announcement of changes to draught beer duty in the budget are welcome, but this reduction will be more than offset by inflationary rises elsewhere.
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"As an industry we have campaigned for a permanent reduction in VAT to 12.5% for pubs and the hospitality industry as well as root and branch reform of business rates, both of which would be major investments in the long-term health of our sector, help it to recover from the past 18 months of closures and provide confidence and employment, particularly for young people.
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"The changes that we have made in recent years to orientate the business to larger scale properties towards the more premium end of the market, means that we are as well placed as any and better than most to navigate our way through any difficulties that are thrown at us.
"I have no doubt that the company and our teams will together put the era of Covid behind us and continue to build on our success."
Daniel Thwaites was founded in 1807 and is now headquartered in Mellor Brook having relocated from its Blackburn base a number of years ago.