Shepherd Neame posts profits drop
Shepherd Neame has posted a drop in profits and warned the current tough trading conditions are likely to last throughout 2008.
The Kent-based brewer and operator reported a 2.3% dip in profit before tax to £4.7m for the half year to 29 December 2007.
It blamed the smoking ban, poor summer weather, subdued consumer spending and higher input costs and admitted the winter had been tougher than expected.
Like-for-like sales in its 49 managed houses fell 1.7% on last year but were up 6.3% in London.
Food sales increased by 7.3% and total accommodation sales improved by 11.2%.
Like-for-like contribution in the 323-strong tenanted estate rose by 0.6%.
Total beer volumes were marginally down and the brewer warned that further increases in utilities and input costs would add further pressure to its brewing operations in the second half.
"Shepherd Neame has delivered a solid and resilient performance over the past six months against a challenging background of subdued consumer spending, significant pressure on input costs, impact from the smoking ban and a wet summer during 2007," said chief executive Jonathan Neame.
"We believe the current difficult trading conditions will persist throughout 2008 but we are investing in the business for the long term and are confident that the quality and profile of our pubs and brands will enable the company to continue to outperform the market."
Chairman Mile Templeman added: "The trade during the winter months has been more challenging than expected."
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