'We've been in business for 218 years - this is how we've increased profits despite Government obstacles'

Daniel Thwaites Plc, was established in 1807 and is behind a number of prominent hotels, pubs and inns across the North West. This week it has reported increased turnover and profits in its latest results, despite increased costs and weak consumer confidence.

In the six months to September 30, 2025, turnover at the Mellor Brook-based company rose by five per cent to £66.7m. Operating profit climbed from £9.4m to £10.1m, largely as a results of the performance of Langdale Chase Hotel, returns on Thwaites' recent investments in its properties and price increases.

The results were achieved despite weak consumer confidence which Thwaites said was due to the government preparing the ground for further tax changes.

Looking at each of its divisions, Thwaites said its pubs got off to a good start due to a long dry and sunny period throughout the spring and into the summer. However, the early gains reversed as both the weather and consumer confidence deteriorated such that beer volumes for the half year were down year on year by one per cent.

The group's inns performed strongly due to the acquisition of The Buck Inn in Malham in March 2025 and significant refurbishments at the Bulls Head, Earlswood, Royal Oak, Keswick and Toll House, Lancaster. Sales were up eight per cent on last year, and with the benefit of a clear focus on cost control profits increased by 15 per cent.

The hotels performance benefitted from further growth in sales at Langdale Chase, which reopened in November 2023 after a full refurbishment, and sales for the period were up 30 per cent on last year. Total sales for the hotels increased by seven per cent year on year.

Thwaites was awarded the AA Hotel Group of the year.

Warning to Government

In a summary, chairman Richard Bailey said: "This is an excellent set of results given the circumstances, which flow predominantly from investments made in previous periods under different circumstances and a lower tax regime.

"We have faced into the additional National Insurance rates and higher National Minimum Wage placed on the sector from April this year by restructuring teams in the managed properties, implementing operational changes to try and absorb increased costs and selectively increasing prices whilst mindful of value, it has been a challenge and one to which our teams have responded stoically.

"It is extremely unhelpful that for the second summer in a row the government has encouraged a running commentary on additional tax rises in the media, which has again damaged business and consumer confidence and suppressed growth.

"The tax burden on community pubs has reached its limit, particularly for landlords running smaller tenanted community pubs. There is no scope for further increases in any tax on them and in the budget due on 26 November we and the rest of the industry have asked for business rates to be cut to alleviate the overtaxed position in which pubs find themselves."

He added: "The business has, for the moment, reduced its level of bank debt and investment and we have phased our investment programme to the latter part of this year to allow us to respond to whatever decisions are taken in the Autumn budget.

"We have a well invested, well positioned business with opportunities to invest, grow and create new employment; however, we can only have confidence to do this if we have a stable and trustworthy fiscal and political framework to work with."