DJ Thwaites (Daniel) Plc Interim Results
TIDMTHW
Interim results for the six months ended 30 September 2011
Chairman's statement
Results
I am pleased to report an encouraging set of results for the six
months ended 30th September 2011 in what has been another very challenging
period for the economy and the consumer and corporate sectors in which we
operate.
Group turnover for the period of GBP70.9m (2010: GBP65.4m) represents
an increase of 8% over the same period last year, and operating profit of
GBP7.6m (2010: GBP7.4m) has increased by 3%.
In Thwaites Beer Co. our free trade business has benefitted from a
good start to the year and has made steady progress. We have continued with
the development of all our brands which continue to grow well in national pub
groups, particularly Wainwright, where volumes increased by 8% in the period.
Trading in Thwaites Pubs benefitted from the good weather in April and May and
the extra bank holiday for the Royal Wedding. In addition, we have completed
32 investment projects in our pub estate at a cost of GBP1.3m in the first half
year and have a similar programme for the rest of the year. Beer volume
declines in our core pub estate were down 4% which represents a significant
improvement on declines experienced in recent years. Overall, operating
profits for Thwaites Beer Co. and Thwaites Pubs increased by 2% to GBP5.0m
(2010: GBP4.9m) due to increases in volumes.
During the period we sold 8 pubs from the bottom end of our pub
estate, at prices broadly in line with net book value, but generating a loss
after disposal costs of GBP0.2m. The proceeds from these sales were reinvested
in the purchase of 3 high quality pubs.
Operating profits in Shire Hotels & Spas and Thwaites Inns of
Character increased slightly to GBP3.1m (2010: GBP3.0m). The hotel market
continues to recover slowly from recession, with small increases in occupancy
and food and beverage sales. The residential conference market is still very
fragile, and we have suffered significant food and utility price inflation,
which has been difficult to recover. Thwaites Inns of Character grew in April
with the acquisition of The Fleece, Cirencester and this property is currently
undergoing a major refurbishment programme.
Net debt has increased to GBP45.8m (2010: GBP42.8m) due to the
investments we are making to support the future growth of the business.
Interest costs of GBP3.2m are at the same level as last year, and remain high
due to the hedging arrangements that were put in place several years ago. The
interest charge will not reduce until LIBOR increases from its current
historically low level.
Earnings per share increased by 13% to 5.2p (2010: 4.6p)
Dividend
The Board recommends an interim dividend of 1.10p (2010: 1.10p) be
paid on 3rd January 2012, to shareholders on the register on 2nd December
2011.
Outlook
On 26th July 2011 we announced our intentions to build a new modern
and efficient brewery to provide a platform for the long term growth of our
beer company. We are working in partnership with Sainsbury's, which has agreed
to buy our existing Blackburn site, subject to planning permission for a new
supermarket. The proceeds from this sale will help to fund the construction of
a new brewery. The public announcement of our intentions has allowed the
search for a suitable site for our new brewery to get underway and we
anticipate that the move will take between three and four years.
We are pleased with the progress we have made over the last six
months, but we have certainly felt the impact of relentless duty increases,
the burden of regulation to our pubs, high cost inflation and government
spending cuts, particularly in the North West. We remain cautious about the
on-going impact of these on our business.
We have a strong balance sheet and the facilities to capitalise on
acquisition opportunities as they become available. As I have said before we
will continue to be selective in those and ensure that we wait to acquire high
quality assets which will create long term shareholder value.
Mrs A J M Yerburgh
Chairman
22 November 2011
Profit and Loss Account for the 6 months ended 30 September 2011
Notes Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
30 September 30 September 31 March
2011 2010 2011
GBP'm GBP'm GBP'm
Turnover 70.9 65.4 126.7
______ ______ ______
Operating profit:
Beer Company and Pubs 5.0 4.9 7.9
Hotels and Inns 3.1 3.0 5.7
Group Central Charges (0.5) (0.5) (1.3)
______ ______ ______
7.6 7.4 12.3
(Loss)/profit on sale of (0.2) - 0.1
properties
Interest payable (3.2) (3.2) (5.9)
Net interest on pension liability 0.4 0.2 0.5
______ ______ ______
Profit on ordinary activities 4.6 4.4 7.0
before taxation
Taxation 2 (1.3) (1.5) (1.7)
______ ______ ______
Profit after taxation 3.3 2.9 5.3
______ ______ ______
Basic Earnings/(loss) per share 5.2p 4.6p 8.4p
Diluted Earnings/(loss) per share 5.2p 4.6p 8.4p
Balance Sheet as at 30 September 2011
Unaudited Unaudited Audited
30 September 30 September 31 March
2011 2010 2011
GBP'm GBP'm GBP'm
Fixed assets
Tangible assets 289.4 292.0 287.2
Investments 10.3 12.6 11.4
______ ______ ______
299.7 304.6 298.6
Current assets
Stocks 4.9 4.7 4.5
Debtors 16.9 16.3 16.0
Cash and bank balances 1.5 9.2 10.0
______ ______ ______
23.3 30.2 30.5
Creditors due within one year
Trade and other creditors (20.6) (23.5) (23.8)
______ ______ ______
Net current assets 2.7 6.7 6.7
______ ______ ______
Total assets less current 302.4 311.3 305.3
liabilities
______ ______ ______
Creditors due after one year
Loan capital (47.3) (52.0) (50.0)
Provisions for liabilities and
charges
Deferred taxation (5.9) (6.7) (6.1)
______ ______ ______
Net Assets excluding pension 249.2 252.6 249.2
liability
Net pension liability (8.5) (13.5) (9.7)
______ ______ ______
Net assets including pension 240.7 239.1 239.5
liability
______ ______ ______
Capital and reserves
Called up share capital 15.8 15.8 15.8
Revaluation reserve 96.1 99.6 96.6
Profit and loss account 128.8 123.7 127.1
______ ______ ______
Equity shareholders' funds 240.7 239.1 239.5
______ ______ ______
NOTES:-
1) The interim accounts, which have not been audited or reviewed,
have been prepared on the basis of the accounting policies set out in the
2010/11 group accounts.
2) The taxation charge is based on the estimated tax rate for the
year.
3) The financial information contained in this statement does not
constitute statutory accounts as defined in S435 of the Companies Act 2006.
Statutory accounts for the year ended 31 March 2011, upon which the auditors
issued an unqualified opinion, have been delivered to the Registrar of
Companies.
(END) Dow Jones Newswires
November 22, 2011 03:30 ET (08:30 GMT)