(Alliance News) - Daniel Thwaites PLC on Wednesday reported a higher profit, turnover and raised its dividend amid an optimistic outlook.

The Blackburn, England-based pub, hotel and leisure company said pretax profit in the financial year to March 31 rose 19% to GBP15.1 million from GBP12.7 million a year prior. Turnover grew 13% to GBP108.8 million from GBP96.0 million.

Cost of sales widened 17% to GBP85.2 million from GBP72.7 million, but administrative expenses decreased 11% to GBP8.4 million from GBP9.4 million.

Daniel Thwaites declared a final dividend of 2.4 pence per share, up from 2.2p a year ago. This brings the total dividend to 3.15p, 43% higher than 2.2p a year prior.

Looking ahead, the company expected inflation to ease and noted that "energy prices are dropping fast in the spot market". Chair Richard Bailey said: "We have opportunities to convert price decreases into our own cost prices and will work hard to grow our sales whilst delivering margin recovery this year."

He added: The factors that have shaken consumer confidence are going into reverse; for the moment recession has been avoided and employment numbers are strong. Our properties are well invested and better staffed than they have been for some time and the corporate and short break domestic leisure markets are showing good bookings for the summer. We are seeing strong performances in some of our pubs and as a result we look to the coming year with cautious but increasing confidence."

Daniel Thwaites shares were flat at 95.00 pence each on Wednesday morning in London.

By Tom Budszus, Alliance News reporter

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