EAST Lancashire brewery giant Thwaites has taken another hit in its year-end results, blaming the recession and cold weather.

The Blackburn firm reported sales of £135.2million for the 12 months to March 31 this year, down from £158.5million in 2009.

And pre-tax profits were slashed from £9million last year to £1million.

The results mark the fourth successive dip in turnover for the historic company from a high of £164.5million in 2006, when pre-tax profits were £11.6million.

Bosses blamed the reduced turnover on declining beer sales, a dip in bookings in the firm’s Shire Hotels arm and the decision to sell a London hotel for £77.5million last year.

But they also said the recession and last winter’s cold snap had an impact, and issued a warning for the future.

Chairman Ann Yerburgh said: “Many of the challenges faced last year are likely to persist into the current one and beyond, and in some cases may increase as our politicians address the country's structural budget deficit.

“However, I remain confident entering the current year, despite uncertainties on many fronts, that we are in a strong position to react to whatever the year throws at us and am certain that the decisions and actions of the past two years will provide a base for future success.”

The firm ensured it stayed in profit by scaling back one-off buys and concentrating on smaller refurbishments to its pubs, a strategy it said it was due to continue.

In its portfolio of 377 pubs, Thwaites said sales tumbled by 10 per cent but 60 per cent fewer pubs were closed down.

In its six Shire hotels, which have 667 rooms, and seven inns, with 156 rooms, there was a drop in demands as businesses cut back.

Staff numbers were cut by 19 per cent to 1,739, mostly outside East Lancashire, and the firm’s pensions deficit rose from £9.9million to £14.7million.

However, sales of Thwaites cask ale Wainwright were up 29 per cent and volumes of bottled ales rose by one per cent.

The company’s net debt, meanwhile, was reduced from £136million in 2009 to £48.8million.

Shareholder group Guinness Peat criticised Penny Street-based Thwaites last year for offloading the Stafford Hotel in London’s Mayfair.