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Financial Results

Shepherd Neame
Full Year Results to 26 June 2021

Shepherd Neame, Britain's Oldest Brewer and owner and operator of 310 high quality pubs in Kent and the South East, today announces results for the 52 weeks ended 26 June 2021.

Announcement of Full Year Results
Key Points
  • Demand has been strong since reopening. 
  • Cashflow is good and net debt1  reducing.
  • Supply Chain challenges and inflation costs will persist into 2022.
Full year results

To put the year’s results in context, our pubs had been closed for 296 of the previous 421 days when they were allowed to reopen indoors on 17 May 2021.

  • Total revenue for the year was £86.9m (2020 restated2: £118.2m).
  • Underlying operating loss before tax3 was £(4.2)m (2020 restated2: profit of £1.5m). Statutory loss before tax was £(16.4)m (2020 restated2: £(21.0)m).
  • Despite making a loss, the Company has managed its net debt1 and cash flow tightly. Net debt1 was £149.1m (2020 restated2: £140.3m) of which lease liabilities were £58.3m (2020 restated2: £55.9m). Bank and private placement debt was £90.8m (2020 restated2: £84.5m) giving headroom to facilities of £41.7m.
  • The Company Net Asset Value per share fell to £11.40 (2020 restated2: £12.47) as a result of the IFRS transition and accumulated Covid losses. As at 26 June 2021 the Company carried out a revaluation of its licensed assets which showed a surplus over book value of £35.9m, +13%.

Trade since re-opening to year end

  • For the initial period from 12 April (when pubs reopened) to 16 May, open retail pubs achieved 62% of 2019 sales4 and from 17 May, when indoor trading resumed, to the year end on 26 June, those same sites achieved 97% of 2019 sales4.
  • Total beer volume has been resilient throughout the pandemic. We have obtained new on-trade customers since re-opening and new listings in other channels. Total volume in all channels was +8.4% in May and June versus 20194.
  • For the 11 weeks from 12 April to 26 June, tenanted pubs achieved 77% of their 2019 volume4. For the four weeks to 26 June, they achieved 91% of their 2019 beer volumes4. Rent was phased back in stages during this period to reach normal levels by August 2021.

Trading since the year end

  • The start of the new financial year has been encouraging. Demand for food and accommodation, in particular, has been strong since July. Drinks trade is recovering since the return to offices in London from September. 
  • For the 18 weeks from 27 June to 30 October, same outlet like-for-like sales5  in retail pubs were 91% of 20196 and up +37.0% vs 20207
  • For the 18 weeks to 30 October, same outlet like-for-like drinks sales in our retail pubs were 76% of 20196 and up +49.1% vs 20207; food sales were 106% of 20196 and up +22.2% vs 20207; room sales were 129% of 20196 and up +44.0% vs 20207. Occupancy was 81%.
  • For the 13 weeks to 25 September, same outlet like-for-like tenanted pub income was 93% of 20196 and up +26.2% vs 20207. 
  • For the 18 weeks to 30 October, total beer volume was 106% of 20196 and up +9.6% vs 20207. Own beer and cider volume was 93% of 20196 and up +1.6% vs 20207.
  • As at 1 November 2021 the Company exchanged contracts to sell two hotels that no longer fit our portfolio for £5.75m to RedCat Pub Company. This will complete in mid-November.

Jonathan Neame, Chief Executive, commented:

“We are greatly encouraged by the customer response since re-opening and are confident that beer and pubs remain every bit as core to British life as pre-pandemic.

We have spent the last year productively: building a better business, strengthening our brand presence and maintaining our pubs to be in optimal shape for reopening. Our relationships with our licensees remain strong and we have few tenanted vacancies. We feel we are in the best shape we can be, in the circumstances, and this has resulted in a strong and sustainable recovery. 

We face challenges ahead, particularly with supply chain and inflationary pressures. That said, we are confident that the long term fundamental drivers for the business remain strong, including the ongoing infrastructure investment in our heartland, anticipated local population growth, changes in consumer and workplace trends, and our position at the centre of the community.   

We have a solid platform and a clear plan to build on our recovery, assisted by our strong balance sheet. For the rest of this year, we remain focused on meticulous cost control, tight cashflow management and further reducing net debt. 

We look forward to 2022 with optimism and, with every day that passes, confidence grows that we can not only recover lost ground, but recover well, unlock growth opportunities and release the full potential of the business. 

We intend to return to prior levels of investment and restore the dividend as soon as circumstances allow.”

1 Net debt comprises cash, bank overdrafts, lease liabilities and bank and other loans less unamortised loan fees.
2 All comparatives are for the 52 weeks to 27 June 2020 and have been restated on an IFRS basis.
3 Underlying operating loss before tax is operating loss excluding operating charges that are either material or infrequent in nature and do not relate to the underlying performance.
4 The periods referred to are the comparative month(s) during the financial year 52 weeks to 29 June 2019.
5 All figures quoted are inclusive of the benefit of the temporary VAT reduction.
6 The periods referred to are the comparative month(s) during the financial year 52 weeks to 27 June 2020.
7 The periods referred to are the comparative month(s) during the financial year 52 weeks to 26 June 2021.

For further information, please contact:
Shepherd Neame Limited
Jonathan Neame, Chief Executive               Tel: 01795 532206
Mark Rider, Finance and IT Director
Instinctif Partners
Matthew Smallwood                                     Tel: 020 7457 2020

For full details:

If you would like hard copies of our latest Annual Report, please contact the company secretary.