Shepherd Neame Ltd - Faversham, Kent-based brewer and pub operator - Pretax profit drops to GBP1.1 million in the six months that ended December 23 from GBP5.5 million a year before. Revenue rises by 4.3% to a "record" GBP89.0 million from GBP85.3 million, but Shepherd Neame takes GBP3.1 million in one-off operating charges, up from GBP798,000 a year before, while a GBP2.6 million profit on disposal of property in 2022 isn't repeated. On an underlying basis, pretax profit is GBP3.8 million, up 9.9% from GBP3.5 million.

The revenue growth reflects a 6.2% rise in like-for-like retail sales and a 5.1% increase in LFL tenanted pub income. This continues into the second half. In the 12 weeks to March 16, retail LFL retail sales are up 4.9% on a year before. Less positively, own beer volume is down 17% in the first half and also so far in the second half.

"Consumer demand has remained robust, with exceptional trade over the Christmas period," comments Chief Executive Officer Jonathan Neame. "It has been a particularly strong period for our London pubs as people continue to return to their offices. Whilst the inflation outlook is improving overall, we do face new inflationary challenges such as the further rise to the national living wage."

Shepherd Neame raises its interim dividend by 5.0% to 4.2 pence from 4.0p.

Current stock price: 705.00 pence

12-month change: up 17%

By Tom Waite, Alliance News editor

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