BLACKBURN brewer Daniel Thwaites has announced record pre-tax profits of £13.2 million after achieving record sales throughout its brewing, pubs and hotels operations.

Chairman Ann Yerburgh described the results as 'excellent' and said they had been achieved against greater employment costs arising from the minimum wage and higher national insurance costs.

In a statement to the Stock Exchange, Thwaites - now one of Britain's top seven brewers - said sales had risen by eight per to £148.5 million.

The company, which employs around 325 staff at its Blackburn brewery and hundreds more at pubs and hotels across the region, last week bought 14 pubs in the Midlands, Cheshire, Staffordshire and Shropshire area in a £7million. Mrs Yerbugh said the company was still looking to buy other businesses.

She said: "These results are due largely to our excellent people who once again this year deserve praise for all their hard work and effort in what can only be described as challenging conditions."

Thwaites' biggest money-spinner is its brewery, which made its highest-ever operating profit of £13.4million. Sales of its new Kaltenburg lager and Lancaster Bomber bitter performed well and a marketing campaign featuring TV's David Dickinson had enhanced sales of Thwaites Smooth beer.

The company's hotels division, Shire Hotels, returned a net profit of more than £1million.