Announcement of preliminary results June 2010

Posted: 07 October 2010

Blog category: News

Shepherd Neame, the Kent-based brewer and pub operator, today announces results for the 52 weeks ended 26 June 2010.

Financial performance:
* Turnover up 5.4% to £115.4m (2009: £109.5m)
* Operating profit before exceptionals up 25% to £11.9m (2009: £9.5m)
* Profit before tax up 25.5% to £8.7m (2009: £6.9m)
* Earnings per share up 11.6% to 49.9p (2009: 44.7p)
* Final dividend per £1 share 18.35p; total dividend per £1 share up 2.9% to 23.1p (2009: 22.45p)
* Net cash inflow before financing of £9.4m
Operational highlights:
* Strong key sales indicators

- total beer volume up 4.8%
- own beer volume up 3.8% to 233,000 BBs
- strong performance from Spitfire, Bishop’s Finger and Asahi Super Dry
- average income per tenanted pub up 1.3%

* Company benefiting from recent investments in new pubs, bottling line and new IT systems

- 2009 pub purchases performing well
- all bottling now undertaken in-house
- improved capacity utilisation
- lower unit costs of production

* Performance encouraging in 13 weeks to 25 September 2010

- continuing growth in beer volume – up 0.6%
- like-for-like retail sales – up 3.5%

Miles Templeman, Chairman, commented:
“This has been a successful year for Shepherd Neame. We have achieved record turnover, record beer volume and strong net cash inflow against a background of a weak UK economy and challenges facing our industry. The pubs and brewery are well invested and the brand portfolio is well regarded and in growth. The business is highly cash generative, has robust long-term financing in place and has ample facilities to take advantage of future market opportunities”