Announcement of Preliminary Results for the Year Ended 25 June 2011

Shepherd Neame, the Kent-based brewer and pub operator, today announces results for the 52 weeks ended 25 June 2011.

Financial performance:

Turnover up 5.2% to £121.3m (2010: £115.4m)
Operating profit before exceptionals up 3.3% to £12.3m (2010: £11.9m)
Profit Before Tax and exceptionals up 9.7% to £8.0m (2010: £7.3m)
Earnings per share before exceptionals up 17.0% to 46.2p (2010: 39.5p)
Final dividend per £1 share of 19.00p. Total dividend per £1 share up 3% to 23.8p (2010: 23.1p)
Strong cashflow has enabled repayment and cancellation of £5m of term loan ahead of schedule
Revaluation of pub estate shows £68m surplus over book value

Operational highlights:

Strong sales indicators
- total beer volume up 4% against a UK decline of 7.1%
- own beer volume up 2.6% to 239,000 BBs
- strong performances from Spitfire, Bishops Finger and Asahi Super Dry
- retail like-for-like sales up 0.7% and like-for-like food sales up 3.9%
- average income per tenanted pub up 1.3%
Pubs benefiting from good performance from recent investment and strong food and accommodation sales
- like-for-like managed sales up 7.4% (2010: +0.7%), liquor +5.6% (2010: -0.7%) food +11.1% (2010: +3.9%), and accommodation +9.7% (2010: +0.1%)
- improving trends within the tenanted estate with like-for-like EBITDAR -3.0% (2010: -3.8%)
- improving profile of pub estate with average EBITDAR in tenanted pubs up by +0.8% and in managed pubs up by +8.5%
Strong start to the new financial year for the 12 weeks to 17 September 2011
- beer volume +6.9%
- like-for-like managed sales +6.5%
- continued improving trends within the tenanted estate
- Since the year end, acquisition of two prestigious coastal hotels for £7.6m, adding 66 letting rooms.

Miles Templeman, Chairman, commented:

This is another strong performance from Shepherd Neame, as we have achieved record turnover and record beer volume. We have improved the offer in our pubs, enjoyed the benefits of recent capital investment in our estate, grown our beer sales and invested to develop our marketing capability. However, the general economic and industry outlook remains challenging with decline in consumer income and inflation in our cost base. We will continue to pursue our long-term strategy of investing fully in our brands and pubs so as to retain the strength and identity of the business. I have every confidence that we will continue to deliver value for shareholders with dividend growth and a strong balance sheet for future expansion.

For further information, please contact:

Jonathan Neame, Chief Executive

Shepherd Neame Limited Tel: 017 9553 2206

Deborah Walter / Clotilde Gros

Kreab Gavin Anderson Tel: 020 7074 1820

Regional and Trade Media Contact:

Pip Clarkson
Edwards Harvey Associates Tel: 01622 604600

For full details

Click here to download the press release

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