Shepherd Neame reports profits and turnover up

Like-for-like sales in the eight weeks to 18 February were up 5.2%, the company announced this morning.

Profit before tax and exceptionals was up 7.2%, although profit on the sale of activity was lower than last year, at £0.2m (2010: £0.5m), meaning pre-tax profits increased by just 1.8% to £4.804m.

Operating profit increased 4.2% to £6.7m, while earnings per share were up 5.6% to 28.2p.

Like-for-likes in December grew 17.7% against poor weather in 2010, although growth slowed in January and February; like-for-like sales in the eight weeks to 18 February were up 5.2% (2010: +11%).

Like-for-like sales in its 45-strong managed division grew 10.2%, with managed food sales up 14.6%, accommodation sales up 9% and alcohol sales up 8.5% (2010: +2.3%).

“Key sales drivers for growth have been increased occupancy rates and revenue per available room in our inns and hotels and growth in food spend per head,” the company said.

Total beer volumes were up 6.8%, with own beer volume up 5.6% “driven by premium bottled ales and Asahi”.
Shepherd Neame said it felt “increasingly confident” to make further acquisitions” as it develops its skills around food and accommodation. “Our strategy is to make selective acquisitions of the highest quality pubs and hotels within our heartland when they become available.”

Chairman Miles Templeman said: “The uncertain economic environment will continue to dominate consumer behaviour for a considerable time to come and so we maintain a cautious outlook.

“But when the conditions are right, consumers still want to go out for a meal or a drink, celebrate a special occasion or take a weekend break. In 2012, there is much to celebrate with the Diamond Jubilee, the UEFA European Football Championships and, of course, the Olympics."