Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Shepherd Neame Ltd - Faversham, Kent-based brewer and pub operator - Pretax profit drops to £1.1 million in the six months that ended December 23 from £5.5 million a year before. Revenue rises by 4.3% to a ‘record’ £89.0 million from £85.3 million, but Shepherd Neame takes £3.1 million in one-off operating charges, up from £798,000 a year before, while a £2.6 million profit on disposal of property in 2022 isn’t repeated. On an underlying basis, pretax profit is £3.8 million, up 9.9% from £3.5 million.
The revenue growth reflects a 6.2% rise in like-for-like retail sales and a 5.1% increase in LFL tenanted pub income. This continues into the second half. In the 12 weeks to March 16, retail LFL retail sales are up 4.9% on a year before. Less positively, own beer volume is down 17% in the first half and also so far in the second half.
‘Consumer demand has remained robust, with exceptional trade over the Christmas period,’ comments Chief Executive Officer Jonathan Neame. ‘It has been a particularly strong period for our London pubs as people continue to return to their offices. Whilst the inflation outlook is improving overall, we do face new inflationary challenges such as the further rise to the national living wage.’
Shepherd Neame raises its interim dividend by 5.0% to 4.2 pence from 4.0p.
Current stock price: 705.00 pence
12-month change: up 17%
Copyright 2024 Alliance News Ltd. All Rights Reserved.