Financial Results

Strong performance in managed pubs division
Encouraging start to new year

Shepherd Neame, Britain's Oldest Brewer and owner and operator of 322 high quality pubs in Kent and the South East, today announces results for the 52 weeks ended 29 June 2019.

Announcement of Full Year Results
Financial performance:
As the previous financial year was a 53 week year to the 30 June 2018 a number of alternative measures are disclosed in addition to the statutory measures. All figures quoted are on a 53 week basis unless otherwise stated.
  • A year of good strategic progress and a solid financial performance
  • Managed and tenanted pubs performance has been excellent and we continue to outperform the market. Brewing and brands, as previously outlined, is in transition with lower turnover and profit.
  • Consequently, Group turnover reduced by -6.9% to £145.8m (2018: £156.6m)
  • Underlying profit before tax on a 52 v 52 week basis was down by -0.3% to £11.4m (2018: £11.4m) in line with expectations
  • Underlying basic earnings per share on a 52 v 52 week basis are level at 60.9p (2018: 60.9p)
  • In order to fund the business for the long term and to take advantage of any opportunities that may arise over the next few years, the business refinanced its debt facilities. As a result a one-off exceptional charge of £10.8m was incurred. Statutory profit before tax therefore was £3.5m (2018: £12.1m)
  • Net assets per share increased by +3.5% to £14.01 (2018: £13.53)
  • The Board is proposing a final dividend of 24.21p (2018: 23.45p) making the total dividend for the year up +3.0% to 30.08p (2018: 29.20p)
Operational highlights:
All figures quoted are on a 52 v 52 week basis.
  • Managed pubs strong performance:
    - Managed pubs (70 pubs) account for nearly half of Group turnover and have been the focus of significant investment in recent years
    - Like-for-like (LFL) sales grew by +3.2% (2018: +1.3%)
    - Average income per managed pub grew by +6.6% (2018: -1.8%)
    -  Despite ongoing cost inflation, underlying managed pub margin increased by 20 basis points to 13.4%
  • Tenanted pubs (239 pubs) continued to trade well:
    - LFL tenanted pub income grew by +2.3% (2018: +2.1%)
    - Average income per tenanted pub grew by +3.3% (2018: +5.8%)-for-like (LFL) sales grew by +3.2% (2018: +1.3%)
  • Brewing and brands is in transition following the loss of the Asahi and Lidl contracts:
    - Managed pubs (70 pubs) account for nearly half of Group turnover and have been the focus of significant investment in recent years
    - Own beer volume down -23.3% (2018: -10.6%)
    - Shepherd Neame own brand beer and cider volume grew by +0.5% (2018: -0.9%)
    - Modernised and expanded our portfolio
    - A new partnership was entered into in August 2019 with the Boon Rawd Brewery Company to import and distribute Singha Beer, Thailand‟s original premium beer
Current trading: 
  • In the 11 weeks to 14 September, total revenue in our managed pubs was up +4.7% (2018: +7.8%) and same outlet like-for-like managed sales were up +1.6% (2018: +5.1%)
  • In the 11 weeks to 14 September, Shepherd Neame own brand beer and cider volume and grew by +5.8% (2018: +4.0%)
  • In the 9 weeks to 31 August like-for-like tenanted pub income was up +2.7% (2018: +6.2%)

Jonathan Neame, Chief Executive, commented:

“Shepherd Neame remains well positioned in the sector, with great pub assets, an exciting and evolving beer portfolio, an excellent brand reputation and a heartland presence in Kent that will benefit from considerable economic development in the next 10 years. Our strong balance sheet and long term financing gives us a great platform to take advantage of any opportunities that arise.

Our managed pubs have achieved substantial growth in turnover and profit. The tenanted pub estate has maintained its impressive like-for-like performance. Brewing and brands performance has, as expected, been more challenging this year, but we are excited by the potential of our emerging portfolio.

We are a modern, well invested, financially strong and balanced business with a strategy designed to deliver long-term value for shareholders. We have transformed our business in recent years to increase our exposure to the growth areas of the market.

We are encouraged by how the new year has started and remain cautiously optimistic about the Company’s prospects despite the uncertainties ahead.”

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: 02074572020
Andy Low

For full details:

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

Annual Report 2019

The Annual Report is available in two versions: