Refinancing drives down pre-tax profit and turnover at Shepherd Neame
A one-off exceptional charge of £10.8m relating to the refinancing of Shepherd Neame's debt facility resulted in a fall in annual pre-tax profit to £3.5m, down from £12.1m the previous year.
The full-year figures to 29 June 2019 for the Kent-based pub operator and brewer also showed a 6.9% drop in group turnover to £145.8m (2018: £156.6m). Like-for-like sales in 70 managed pubs, which account for nearly half of group turnover, and tenanted pubs grew by 3.2% and 2.3% respectively.
In the current financial year in the 11 weeks to 14 September, Shepherd Neame reported that total revenue in its managed pubs had increased by 4.7% (2018: up 7.8%), with like-for-like managed sales up by 1.6% (2018: up 5.1%).
Jonathan Neame, chief executive of the company, said the group was "encouraged by how the new year had started and remained "cautiously optimistic" about future uncertainties.
"Our managed pubs have achieved substantial growth in turnover and profit. The tenanted pub estate has maintained its impressive like-for-like performance. Brewing and brands performance has, as expected, been more challenging this year, but we are excited by the potential of our emerging portfolio.
"We are a modern, well invested, financially strong and balanced business with a strategy designed to deliver long-term value for shareholders. We have transformed our business in recent years to increase our exposure to the growth areas of the market."
