Acquisition of Pubs & Trading Update

Posted: 29 June 2012

Blog category: News

Shepherd Neame, the Kent-based brewer and pub operator, today announces the purchase of four freehold pubs from Enterprise Inns plc. These high quality pubs are all located within the Company’s heartland of East Kent and further strengthen the Company's footprint in this area. The pubs are based in Canterbury, Deal, and Whitstable. All are character pubs with good outside space and three enjoy excellent coastal locations.

These four new pubs will be operated under existing lease arrangements and bring Shepherd Neame's total estate to 354 pubs comprising 44 managed pubs and 310 tenanted and leased pubs. These selective additions follow the acquisition of two prestigious hotels in the first half of the year and a further Inn purchased in February 2012.

At the same time the Company has extended its current five year term loan arrangement with The Royal Bank of Scotland and Lloyds Banking Group. This revised term loan facility has increased from £10m to £20m and will now expire with the Company’s £10m revolving credit facility in May 2017. The existing £60 million term loan remains unchanged and matures in 2026. Excluding the overdraft facility, this brings Shepherd Neame’s total committed credit facilities to £90m.

Shepherd Neame will be reporting results for the period ending 30 June 2012 in September 2012. Since the Company last reported its performance, trading has remained robust through the spring and summer months. For the 48 weeks to 26 May 2012 total beer volume grew by 3.8%, like for like sales in managed houses grew by 7.7% and average EBITDA per tenanted pub grew by 2.8%. The Company expects to announce performance in line with market expectations.

FOR FURTHER INFORMATION PLEASE CONTACT:

Shepherd Neame Limited
Jonathan Neame, Chief Executive - Tel: 01795 532206
Mark Rider, Finance Director - Tel: 01795 542233

Kreab Gavin Anderson
Deborah Walter / Clotilde Gros - Tel: 020 7074 1800

REGIONAL & TRADE MEDIA CONTACT:

Edwards Harvey Ltd
Pip Clarkson - Tel: 01622 604600

Note: The directors of Shepherd Neame Limited accept responsibility for this announcement.