Shepherd Neame has reported like-for-like sales across its managed estate up 6.1% and like-for-like tenanted EBITDAR up 2.4% for the 52 weeks to 27 June.

The managed performance was made up of growth in drinks like-for-like sales of 4.3%, food +7% and accommodation up 13.8%.

In the 10 weeks to 5 September like-for-like sales in managed pubs and hotels were up 6.5% and like-for-like EBITDAR from tenanted pubs to 29 August rose 1.8%

Turnover fell 0.3% during the financial year to £138.3m (2014: £138.7m) as the company concluded its phased exit from contract brewing.

Operating profit before exceptionals was up +5.1% at £14.1m; profit before tax and exceptional items rose 9.4% to £9.6m and statutory profit before tax was up 22.1% to £9.4m

Average EBITDAR per managed pub rose 7.1% during the year with average EBITDAR per tenanted pub up 4.1%

Core own and licensed beer volumes (excluding contract brewing) was up 0.1%: with strong growth from the Whitstable Bay range and Samuel Adams Boston Lager. Core own and licensed beer volumes (excluding contract brewing) to 5 September was up 8.6%

Jonathan Neame, chief executive, said: “This has been a successful year for the company with positive evolution of our strategy and a strong financial performance. We have built a high-quality asset base over a long period of time and this year have made a number of exciting new additions to our beer and pub portfolios. Whilst the industry remains very competitive we are confident that we have a robust strategic, geographic and financial base from which to continue to grow.”

Chairman Miles Templeman said: “This has been a strong year for the company. We have maintained our good trading momentum and developed and refined our strategy so that we have clear aims and objectives that are communicated across the business.

“We remain naturally cautious of economic and legislative factors which may impact the business and our sector and so reduce consumption levels or pub footfall. The introduction of the National Living Wage will provide a cost challenge in due course.

“However, we believe we have the skills to manage these risks, the ambition to seek new opportunities and a strong pipeline of investment potential within the existing asset base to grow the company.”

At the year end Shepherd Neame operated 338 pubs and hotels (2014: 347) of which 295 are freehold (2014: 302). Of these 52 (2014: 48) were managed at year end and 286 (2014: 299) were tenanted or leased.

During the year the company acquired two new pubs; the Ostrich at Colnbrook, near Heathrow and the Inn on the Pond in Nutfield, Surrey. Both of these are being operated as managed pubs. The company said it plans to redevelop The Ostrich to add letting accommodation. It has also acquired the freehold of an existing pub, the Lock and Barrel, Frinton-on-Sea, which was leasehold and operates as a tenanted pub.

Since the year end the company acquired two further outlets to be operated as managed pubs. The Minnis Bay Bar and Restaurant and the Anchor, Hampstead Lock, Yalding take the managed estate to 54.

In 2015 Shepherd Neame raised gross proceeds of £3.2m (2014: £2.2m) from the disposal of 11 pubs (2014: four pubs), and one unlicensed property (2014: three unlicensed properties) and other assets. This realised a profit of £0.2m (2014: £0.2m). It also transferred three tenanted pubs (2014: one) to our managed estate and one pub from managed to tenanted.

 

Topics