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Financial Results

Resilient performance.
Well placed for when normal trading resumes.

Shepherd Neame, Britain's Oldest Brewer and owner and operator of 319 high quality pubs in Kent and the South East, today announces results for the 52 weeks ended 27 June 2020.

Announcement of Full Year Results
Financial performance for the year:
  • Traded well up to the outbreak of COVID-19. The first 8 month period of the financial year to 29 February 2020 saw turnover up +4.6% and underlying profit before tax1 up +6.1%
  • Turnover for the year decreased to £123.6m (2019: £145.8m) demonstrating the impact of 3 months’ closure
  • Underlying operating profit2 was £0.9m (2019: £15.3m) and underlying loss before tax was £2.9m (2019: profit £11.4m). Statutory loss before tax was £12.1m (2019: profit £3.5m)
  • Underlying basic loss per share3 was 17.8p (2019: earnings per share 60.9p)
  • Basic loss per share was 79.8p (2019: earnings per share 17.6p)
Key points:

Business resilient and well positioned for growth once normal trading conditions resume

  • Core strategy is unchanged, namely to focus on our strengths as a brewer and pub retailer within our heartland of Kent, London and the South East
  • Balance of business between managed, tenanted and brewing divisions, between wet, dry and accommodation sales, and between city, suburban, community and destination outlets has proved to be extremely resilient
  • Demand for food and accommodation outlets has been strong since reopening
  • Long term infrastructure developments in our Kent heartland presents significant growth opportunities over the medium term

Current Trading: 18 weeks to 31 October 2020

  • Pubs continued to outperform the market to 31 October with managed like-for-like sales4 at 66% of last year’s levels and managed like-for-like sales for open sites -13.4%. Tenanted like-for-like pub income5 at 75% of prior year
  • Own brand beer and cider volumes6 at 98% of the prior year level. Total own beer volumes7 at 92% of the prior year level
  • Net debt continues to hold steady: £83.9m at 28 December 2019, £84.4m at 27 June 2020 with £11m of tax liabilities that had been deferred in agreement with HMRC, £84.8m at 31 October 2020 with the tax liabilities that had been deferred reduced to £4.7m with a further £1.1m of general deferrals
  • New lockdown from 5 November will be again extremely disruptive and adversely impact performance. Remains unclear when trading may resume bringing uncertainty over the important Christmas period

Annual General Meeting

  • Annual General Meeting date previously announced is changed to 12 Noon Friday December 4th and will be held as a virtual meeting. Details in the Notice of Meeting.

Jonathan Neame, Chief Executive, commented:

“This has been the most challenging period any of us in the hospitality industry have ever faced. I am incredibly proud of how everyone across the business has reacted, and the ingenuity and team spirit shown by our licensees and team members during this time has been inspiring.

Trading during the summer months was encouraging, highlighting the strength of our offer and people’s undiminished desire to go out and socialise in a safe environment with family and friends.

We have worked hard to drive positive cash flow in the new financial year and have sufficient liquidity for the foreseeable future. We welcome the ongoing support from the Chancellor, but the sector faces a very tough winter as we return to lockdown with fresh uncertainties.

Shepherd Neame has weathered many crises in its long history and I am determined that we emerge from this crisis in a position of strength, ready to seize the opportunities that lie 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: 020 7457 2020
Andy Low

For full details:

 

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

Annual Report 2020

The Annual Report is available in two versions: