Shepherd Neame swings to a loss ahead of new hospitality restrictions
Britain’s oldest brewer Shepherd Neame swung to a loss in the last financial year due to the impact of the coronavirus lockdown.
The pub chain posted a loss before tax of £12.1m in the year ended 27 June, compared to profit of £3.5m the previous year.
Turnover dropped from £145.8m to £123.6m, reflecting the three months of forced closure during the first UK coronavirus lockdown.
Shepherd Neame said the business is resilient and well positioned for growth when normal trading resumes.
However, the new lockdown, which comes into force tomorrow, will “be again extremely disruptive and adversely impact performance,” the company said.
It “remains unclear when trading may resume bringing uncertainty over the important Christmas period”, Shepherd Neame added.
The firm also updated the market on recent trading, saying managed like-for-like sales had reached 66 per cent of last year’s levels since reopening, while tenanted pubs had recovered to 75 per cent of sales.
Chief executive Jonathan Neame said: “This has been the most challenging period any of us in the hospitality industry have ever faced.
“I am incredibly proud of how everyone across the business has reacted, and the ingenuity and team spirit shown by our licensees and team members during this time has been inspiring.
Trading during the summer months was encouraging, highlighting the strength of our offer and people’s undiminished desire to go out and socialise in a safe environment with family and friends.”