London pubs are back to normal, says Shepherd Neame boss
Britain’s oldest brewer says London pubs are back to normal but has warned that profit margins are being squeezed by surging energy prices.
Jonathan Neame, CEO of Shepherd Neame, said it was “very difficult” to predict how much margins could suffer given “extremely volatile” prices.
“It’s all completely dependent on energy,” he said.
The warning came as the Kent-based brewer, which operates 302 pubs across the South East, returned to profit and announced its first dividend since the onset of the pandemic.
The Spitfire ale maker reported a profit of £5.4 million in the 26 weeks to 25 December, compared to a loss of £7.2 million for the same period a year earlier. Sales rose 55% to £78.7 million.
Shepherd Neame announced an interim dividend of 3.5p per share, its first since October 2019.
The payout is 60% of the company’s last dividend. CEO Neame said he was “grateful to our shareholders for the support they have given us.”
Neame said London pubs were now “getting closer to normal”, adding: “All things being equal, I don’t see the demand slowing down in the short term.”
He shrugged off concerns about the rising cost of living, saying: “Pubs historically have demonstrated that they are remarkably resilient to inflation. People still want to go to the pub.”
