Shepherd Neame swings to loss after Covid closures

Pub group Shepherd Neame said on Tuesday that it swung to a full-year loss as it took a hit from pub closures due to Covid restrictions.

In the year to 26 June, the company swung to an operating pre-tax loss of £4.2m from a profit of £1.5m the year before, with revenues down to £86.9m from £118.2m. Shepherd Neame pointed out that its pubs had been closed for 296 of the previous 421 days when they were allowed to reopen indoors on 17 May 2021.

"It would be hard to imagine worse circumstances. Indeed, it has been pointed out that since brewing began on the Faversham site around 1573, there had never been a prolonged cessation of any part of our business until March 2020," it said.

On the upside, the group said trading since the start of the new financial year has been "encouraging", with demand for food and accommodation, in particular, strong since July. Drinks trade is recovering since the return to offices in London from September, it added.

For the 18 weeks from 27 June to 30 October, same outlet like-for-like sales in retail pubs were 91% of 2019 levels and up 37% from 2020.

Chief executive officer Jonathan Neame said: "We are greatly encouraged by the customer response since re-opening and are confident that beer and pubs remain every bit as core to British life as pre-pandemic.

"We face challenges ahead, particularly with supply chain and inflationary pressures. That said, we are confident that the long term fundamental drivers for the business remain strong, including the ongoing infrastructure investment in our heartland, anticipated local population growth, changes in consumer and workplace trends, and our position at the centre of the community."