Coronavirus Update

Shepherd Neame Ltd - Interim results to December 2020

This content has been sourced from:



Shepherd Neame, Britain's Oldest Brewer and owner and operator of 316 high quality pubs in Kent and the South East, today announces results for the 26 weeks ended 26 December 2020.

Financial performance to 26 December 2020

  • The period under review included strong trading during the summer months, followed by ever changing levels of restriction and finally enforced closure again from November. The disruption had a significant impact on the financial results
  • Turnover was £55.3m (H1 2020[1]: £79.0m)
  • Underlying operating loss[2] of (£3.6m) (H1 2020: £8.0m profit)
  • Statutory loss before tax was (£7.2m) (H1 2020: £5.4m profit
  • Underlying basic loss per share[3] of (32.6p) (H1 2020: earnings of 33.1p)

 Financing and Financial Support

  • Bottled beer volume growth of +25.7% and tight cost control have restricted underlying monthly cash burn to c.£1.5m to £2m while pub estate was closed
  • Net debt as at 27 March 2021 was £96.5m (27 June 2020: £84.4m) giving headroom of £36.0m
  • New waivers agreed with lenders on 20 April 2021. Normal covenant tests relaxed through to September 2022, replaced with minimum liquidity covenant. Ample liquidity for foreseeable future

Reopening our pubs

  • Over 200 pubs gardens reopened on 12 April 2021. All pubs will be open on 17 May 2021. Initial trade levels are encouraging
  • Targeted investment programme to optimise gardens and outside space and to maintain high standards of signage and decoration
  • Strong marketing and social media push to drive footfall

Jonathan Neame, CEO of Shepherd Neame, said:

"We are delighted and excited to have opened over 200 pub gardens on 12 April and look forward to reopening the rest of our pubs in May with increasing confidence. There is significant pent up demand in the economy and the desire to go out for a drink or a meal is as strong as ever. Initial trade has been most encouraging.

There are still many challenges to face and a long road to full recovery, but the balance sheet remains strong and we have ample liquidity.

The relationship with our licensees is excellent and our reputation for beer and pubs is strong. We look forward with confidence to returning Shepherd Neame back to growth."