Pre-tax losses for the 25-strong company were £522,901 (2011: £1.1m), with operating profits at £40,717 (2011: £137,258). Turnover grew 8.6% to £12.3m.
Operations director Phil Thorley told M&C Report the company undertook some “pruning of the garden” in the year, selling its flagship Fayreness Hotel in Kingsgate to Shepherd Neame, along with two small freeholds and one tied leasehold. It also bought three freeholds, of which two were operated by the company on leases from Enterprise Inns.
Thorley said: “We’ve got a couple of small sites on the market. Plus we are reinvesting in existing sites.” This includes investment of more than £250,000 at two outlets.
“We are in a good position to take advantage of anything that comes up that we think is right for us,” he added.
Thorley Taverns repaid all outstanding loans to RBS and negotiated two new loans with “much improved” interest rates. However, this incurred a breakage charge of £423,500, which along with a £40,000 property impairment charge, resulted in an exceptional items bill of £463,500 (2011: £969,788).
The company said it “continues to maintain its outlets to a high standard”.
“The two main hotels have continued to enjoy excellent room occupancy. Despite the challenging economic conditions the company still shows an operating profit, with gross profits having increased to 65.2% from the previous year’s 64.7%.”
Thorley Taverns said it had been “another difficult trading period”, but added: “With the sales and purchases of outlets and the new, improved interest rate on the loans, the directors anticipate a better performance from the company in the year to 30 June 2013.”