(Alliance News) - Shepherd Neame Ltd on Wednesday said revenue rose in the first half of its financial year, after the easing of pandemic restrictions helped sales to increase.

The Faversham, Kent-based brewer and pub operator reported revenue for the six months that ended December 24 of GBP85.3 million, rising 8.4% from GBP78.7 million a year before. The company noted that revenue in its pubs and hotels business increased by 18% to GBP36.9 million,from GBP31.3 million a year prior.

"This is our first half-year period since 2019 without any Covid-19 related restrictions. Consumer spending overall has remained strong. A long hot summer and a mild autumn helped our coastal sites and there has been a progressive return to offices within the City of London," the company said.

Pretax profit was GBP5.5 million in the first half, increasing 1.9% from GBP5.4 million a year before, while basic earnings per share were unchanged at 28.9 pence per share.

The company declared an interim dividend of 4.00p per share, increasing 14% from 3.50p per share the year prior, but below pre-pandemic levels.

Looking ahead, Shepherd Neame said demand in the second half of the year was strong, but it expects further cost inflation in the second half, and into financial 2024.

The hospitality firm said it welcomes measures introduced in the UK government budget last week to reduce alcohol duty on beer in pubs.

Chief Executive Officer Jonathan Neame said: "We have an excellent pub estate with considerable potential, well-established brands, a loyal customer base, and a high profile within the individual communities we serve. All these factors will stand us in good stead as the cost of living crisis eases and the economy returns to growth."

Shepherd Neame shares traded at 590.20 pence each on Aquis Stock Exchange in London on Wednesday afternoon, down 2.4% from 605p at the close on Tuesday.

By Harvey Dorset, Alliance News reporter

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