Thwaites (Daniel) Plc Half-year Report

 
TIDMTHW 
 
INTERIM RESULTS FOR THE SIX MONTHSED 30 SEPTEMBER 2023 
 
CHAIRMAN'S STATEMENT 
 
OVERVIEW 
 
The Company has turned in a solid performance over the last six months, a period 
in which we have continued to operate in volatile markets with large swings in 
our costs, particularly utility costs, increasing interest rates, embedded 
inflation and pressure on people's discretionary spend. 
 
RESULTS 
 
Turnover for the half year was £60.3m, which is a 4% increase compared to 
turnover last year of £57.9m. 
 
An operating profit of £8.8m for the half year compares to £9.9m last year, the 
drop being due to the impact of property disposals, on which we made a profit of 
£0.2m in the period (2022: £1.3m). Underlying operating profit before the impact 
of property disposals remained flat year on year at £8.6m. 
 
Interest rates have continued to rise, and inflation has remained higher than 
the Bank of England forecast in the Spring. It seems that we have entered a new 
period where interest rates will remain higher than we have experienced during 
the past decade reverting to the historic norm of a 3-5% rate band. Once again 
this has had a positive impact on the mark to market fair value of our interest 
rate swaps, resulting in a decrease in the provision of £2.1m at the half year 
(2022: £7.6m), and this positive movement is shown in our profit and loss 
account. 
 
Net debt at 30 September 2023 was £70.6m (2022: £61.1m); an increase of £9.5m 
compared to last year, and up from £66.7m at 31 March 2023. The business has 
comfortable headroom against total banking facilities of £82m and is trading 
well within it banking covenants. 
 
PUBS AND INNS 
 
The pubs got off to a strong start with some fine spring weather, although this 
deteriorated with a terrible wet spell throughout July and August returning to a 
glorious start to September, which overall has resulted in beer volumes down 1% 
year on year, but ahead on contribution. 
 
Our inns performed very strongly over the summer months with sales up 10% on 
last year and profits up 12%. After a relatively quiet summer last year as 
people opted for overseas holidays, this summer saw an improved staycation 
market as cost pressures encouraged more people to opt for short breaks in the 
UK and we have seen strong occupancy and room rate growth in our leisure 
locations. 
 
HOTELS & SPAS 
 
The hotels & spas have delivered a steady growth in sales, which are up on a 
like for like basis by 2% year on year, and with a close eye on their cost base, 
particularly labour and utility costs, profits increased by 5%. 
 
We have seen increased demand for rooms driving both occupancy and rate. Our gym 
memberships have increased, but treatment sales have suffered slightly as 
customers rein in their spending. After a bumper year for weddings in 2022 
catching up after the pandemic, this summer saw a much lower number, which 
impacted both food and drink sales, forward bookings for next year suggest that 
the post pandemic boom in weddings is now behind us and we will revert to normal 
numbers. 
 
ACQUISITIONS, DEVELOPMENTS AND DISPOSALS 
 
We have made no acquisitions during the period although we continue to look at 
opportunities for high quality properties. 
 
We closed Langdale Chase in September last year and embarked upon the 
development and repositioning of this hotel, which we acquired in 2017, and is 
situated on the banks of Lake Windermere. This has been a major undertaking and 
a significant investment. I am pleased to say that it is due to reopen in 
November 2023, largely on time and on budget and we believe that it will make a 
real mark in its market once it is properly re-established. 
 
We have also continued to divest of pubs that no longer suit our requirements 
and sold six pubs and two ancillary properties in the period. We received total 
proceeds from these disposals of £2.5m, making a profit on disposal of £0.2m. 
 
EARNINGS PER SHARE 
 
Earnings per share for the period is 11.2p per share, which compares to 22.6p 
per share in 2022. The earnings per share benefitted in each year from mark to 
market gains on our interest rate swaps. These gains are a result of the 
increases in interest rates over the last eighteen months and reverse unrealised 
losses on the swaps incurred in prior periods. 
 
DIVID 
 
The Board recommends an interim dividend of 0.85p per share (2022: 0.75p) to be 
paid on 9 January 2024 to shareholders on the register on 8 December 2023. 
 
CHANGE OF AUDITOR 
 
The Board has conducted a review of the Group's audit arrangements and has 
decided to appoint MHA Moore and Smalley to replace BDO LLP for the financial 
year ending 31 March 2024. 
 
SUMMARY AND OUTLOOK 
 
The Company has a diversified property portfolio situated across much of 
England, however it is not immune from the impact of international events. The 
risk premium of shocks such as the war in Ukraine and recent developments in 
Israel and Palestine continue to pose a sizeable threat to our input costs and 
bring considerable volatility which is difficult to predict. 
 
Furthermore, the government, whilst ostensibly saying that it wishes to control 
inflation and support economic growth, is scheduled to withdraw the current 
support on the overburden that pubs contribute to the government coffers in 
respect of business rates in the spring. Such an increase can only be borne by 
pubs increasing their prices at a time when it is unclear how much more the 
customer will stand. This issue disproportionately affects the hospitality 
industry at a time when it is already under stress and may lead to more pub 
failures. 
 
World events and the UK specific tax burden on pubs are not positive and mean 
that we are cautious about how consumer spend will hold up over the next 6-12 
months, with the media once more talking up a mild recession. However, so far 
both we and the general economy have continued to grow our top line and navigate 
the current cost and tax challenges, so we look forward with overall, albeit 
tempered, optimism. 
 
Richard Bailey 
 
Chairman 
 
10 November 2023 
 
Profit and Loss Account for the six months ended 30 September 2023 
 
 
 
 
 
                                                                  Unaudited 
Unaudited  Audited 
                                                                  6 months    6 
months   12 months ended 
 
                                                                  ended 
ended      31 March 
 
                                                                  30          30 
2023 
                                                                  September 
September 
                                                                  2023 
2022       £'m 
 
                                                                  £'m 
£'m 
 
 
Turnover                                                          60.3 
57.9       108.8 
 
Operating profit before property disposals                        8.6 
8.6        10.9 
 
 
 
Property disposals                                                0.2 
1.3        1.4 
 
                                                                  ______ 
______     ______ 
Operating profit                                                  8.8 
9.9        12.3 
 
                                                                  (2.6) 
(2.0)      (4.1) 
 
Net interest payable                                              2.1 
7.6        6.6 
 
Gain on interest rate swaps measured at fair 
value 
Finance income on pension asset                                   0.2 
0.2        0.3 
 
 
 
                                                                  ______ 
______     ______ 
Profit on ordinary activities before taxation                     8.5 
15.7       15.1 
 
Taxation                                                          (1.9) 
(2.4)      (2.2) 
                                                                  ______ 
______     ______ 
Profit on ordinary activities after taxation                      6.6 
13.3       12.9 
                                                                  ______ 
______     ______ 
Earnings per share                                                11.2 p 
22.6       21.9 p 
                                                                              p 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet as at 30 September 2023 
 
 
 
 
 
                                                                Unaudited 
Unaudited  Audited 
                                                                30         30 
31 
                                                                September 
September  March 
                                                                2023       2022 
 
2023 
                                                                £'m        £'m 
 
£'m 
Fixed assets                                                    308.4      293.9 
302.0 
 
Tangible assets                                                 0.7        0.6 
0.8 
 
Investments                                                     ______ 
______     ______ 
                                                                309.1      294.5 
302.8 
Current assets 
Stocks                                                          0.9        0.8 
0.9 
Trade and other debtors                                         7.3        8.0 
5.9 
Cash at bank and in hand                                        2.4        2.9 
2.0 
                                                                ______ 
______     ______ 
                                                                10.6       11.7 
8.8 
Creditors due within one year 
Trade and other creditors                                       (20.6) 
(21.9)     (20.0) 
 
Loan capital and bank overdraft                                 - 
(19.0)     (1.7) 
                                                                ______ 
______     _____ 

Net current liabilities                                         (20.6) 
(40.9)     (21.7) 
 
                                                                (10.0) 
(29.2)     (12.9) 
                                                                ______ 
______     ______ 
Total assets less current liabilities                           299.1      265.3 
289.9 
 
Creditors due after one year                                    (73.0) 
(45.0)     (67.0) 
 
Loan capital                                                    (9.5)      (3.7) 
(9.5) 
 
Deferred tax                                                    (1.6)      (2.8) 
(3.6) 
 
Interest rate swaps 
                                                                ______ 
______     ______ 
Net assets excluding pension asset                              (84.1) 
(51.5)     (80.1) 
 
                                                                215.0      213.8 
209.8 
 
Pension asset                                                   32.2       10.8 
32.2 
                                                                ______ 
______     ______ 
Net assets including pension asset                              247.2      224.6 
242.0 
                                                                ______ 
______     ______ 
 
Capital and reserves 
Called up share capital                                         14.7       14.7 
14.7 
 
Capital redemption reserve                                      1.1        1.1 
1.1 
Revaluation reserve                                             76.5       74.8 
77.2 
Profit and loss account                                         154.9      134.0 
149.0 
                                                                ______ 
______     ______ 
Equity shareholders' funds                                      247.2      224.6 
242.0 
                                                                ______ 
______     ______ 
 
 
 
 
 
NOTES:- 
 
1.Basis of preparation 
 
The interim accounts, which have not been audited, have been prepared on the 
basis of the accounting policies set out in the Annual Report and Accounts for 
the year ended 31 March 2023. 
 
2.Taxation 
 
The taxation charge is based on the estimated tax rate for the year. 
 
 
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https://news.cision.com/thwaites--daniel--plc/r/half-year-report,c3872918 
The following files are available for download: 
https://mb.cision.com/Main/22885/3872918/2420435.pdf DT Interim Report 2023 
 
 
END 
 
 

(END) Dow Jones Newswires

November 10, 2023 04:00 ET (09:00 GMT)