Brewer Shepherd Neame reports record sales

The Woolpack in Banstead, Surrey, is one of Shepherd Neame's pubs

Brewer and pub group Shepherd Neame has reported record high sales saying inflation is "at last" beginning to ease.

It says sales have been boosted in London as more city centre workers are returning to their offices.

Revenues for the six months to December reached a record high of £89m, about 4% more than the same period a year ago, Shepherd Neame has reported.

The company based in Faversham, Kent, says at more than 300 years old it is Britain's oldest brewer.

Shepherd Neame group, which operates 296 pubs and brews beers under a range of brands including Spitfire, Bishops Finger and Whitstable Bay, said Christmas trading had been "exceptional".

Chief executive Jonathan Neame said: "Consumers celebrated their first uninterrupted Christmas since 2019.

"Whilst the cost of living crisis is still squeezing consumer pockets, hospitality has fared better than high street retail."

Mr Neame says pubs have generally been performing better than casual dining, as restaurant groups feel the impact of consumers making cut-backs to their spending.

Shepherd Neame says the prices of food, raw materials and energy are still around 10% higher than the previous year, but are beginning to stabilise.

Mr Neame said: "Whilst we do face new inflationary challenges, such as the further rise to the national living wage which takes effect from 1 April, hospitality businesses are potential beneficiaries of the additional discretionary spend this will put in consumers' pockets."

Shepherd Neame's statutory pre-tax profit fell to £1.1m from £5.5m the previous year.

On an underlying basis, which strips out one-off costs, profits grew by 10% to £3.8m year on year.

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