Shepherd Neame profits up in difficult trading conditions

Shepherd Neame has announced that pre-tax profits are up nearly 10 per cent on last year to £8.2m, despite difficult trading conditions.

The Kent brewer has weathered a year of problems including the foot-and-mouth crisis, floods and a miserable summer, but has announced a good set of results.

Chairman Bobby Neame said the company had made good progress and added that the brewer was looking to buy more pubs in London, Essex and Sussex.

"Our strategy over the past few years has been to invest in the brewery, in our brands and in our pubs," Mr Neame said.

"The performance of our managed houses, in particular, has been most encouraging."

Managing director Jonathan Neame told thePublican.com that although he was a little concerned by the possibility of a recession, he thought the company was in good stead to withstand a downturn in the economy.

"We noticed a slight slump in our London pubs in the two weeks after the US attacks, but things have started to pick up again. We are making solid, steady progress that will drive us forward," he said.

Sales of the company's well-known Spitfire brand were also up by 44 per cent and the company is launching a new poster campaign to support the brand in December. Recent developments have also seen the brewer acquire the brewing rights for Holsten Export.

The company is in a better position than most. Six Continents has issued a profit warning following the US attacks and shares in London brewer Fullers have fallen by 8.2 per cent to 390p.