Shepherd Neame (LSE:SHEP), the Kent-based brewer and owner of pubs across Kent, London and the South East, reported revenue down 1.1% to £162.6m for the 52 weeks to 27 June, against £164.3m a year earlier.
Underlying pre-tax profit rose 1.8% to £7.8m, which the company said was in line with market expectations, while underlying EBITDA grew 0.8% to £25.6m. Statutory pre-tax profit fell 43% to £3.6m, reflecting impairment charges on 15 properties. Retail like-for-like sales rose 3.8% and tenanted like-for-like pub income increased 2.7%, with London retail pubs up 10.1%.
Total beer volume fell 5.4% and own beer volume dropped 9.6%, though own beer volumes rose within the Retail and Tenanted estates.
Brewing and Brands revenue fell 4.6% to £42.8m, with divisional underlying operating profit collapsing to £0.1m from £1m, hit by rising logistics costs; the company said a strategic review of this division is underway.
Net debt excluding lease liabilities fell to £82m from £83.7m.
The board proposed a total dividend of 22.15p, up 3% from 21.5p.
"Demand has remained strong throughout the year, with notable performance from our London pubs, and some excellent returns from our recent investments," said chief executive Jonathan Neame.
Trading has continued strongly into the new financial year: retail like-for-like sales rose 6.7% in the 13 weeks to 26 September, though tenanted like-for-like pub income growth slowed to 0.4% in the nine weeks to 29 August.
Chairman Richard Oldfield will retire after the AGM on 30 October, when Neame becomes Executive Chairman and Mark Rider steps up to Managing Director.