FDBusiness.com

Shepherd Neame, the Kent-based English brewer and pub operator, increased turnover by 5.2% to £121.3 million and operating profit before exceptionals by 3.3% to £12.3 million for the year ended June 25th 2011. The company’s total beer volume was up 4% against an overall decline of 7.1% in the UK beer market. Own beer volume rose 2.6% to 239,000 brewers’ barrels (68.9 million pints), aided by strong performances from the Spitfire and Bishops Finger brands. The majority of beer sales are in the UK although the company also exports to more than 20 countries including Sweden, Italy and Ireland.

Profit before tax and exceptionals atBritain’s oldest brewer rose 9.7% to £8.0 million but statutory profit before tax was down 25.6% to £6.5 million, due to lower profits on property disposals and an impairment charge.

At the year end Shepherd Neame operated 359 pubs in the South East, of which 315 were tenanted or leased and 44 managed. The pub estate ranges from food-focused destination houses and hotels to historic coaching inns and traditional community ‘locals’.

Miles Templeman, chairman of Shepherd Neame, comments: “This is another strong performance from Shepherd Neame, as we have achieved record turnover and record beer volume. We have improved the offer in our pubs, enjoyed the benefits of recent capital investment in our estate, grown our beer sales and invested to develop our marketing capability.”

He cautions: “However, the general economic and industry outlook remains challenging with decline in consumer income and inflation in our cost base. We will continue to pursue our long-term strategy of investing fully in our brands and pubs so as to retain the strength and identity of the business. I have every confidence that we will continue to deliver value for shareholders with dividend growth and a strong balance sheet for future expansion.”