Shepherd Neame says it is "well positioned for growth"
In the company’s financial update it reported that its pubs have “outperformed the market”, with managed like-for-like sales at 66% of last year’s levels and managed like-for-like sales for open sites down 13.4%.
However, the business has also warned the new lockdown from today (5 November) would be “extremely disruptive and adversely impact performance” for the business, with uncertainty over the Christmas trading period.
Despite the challenges of a new lockdown, Shepherd Name says its business as “resilient and well positioned for growth” once normal trading conditions resume.
In a trading update for the 18 weeks to 31 October 2020, the Kent-based company reported that own brand beer and cider volumes were at 98% of the 2019’s level. Total own beer volumes were at 92% of the previous year’s level
The group says it traded well up to the outbreak of Coronavirus, with the first eight-month period of the financial year to 29 February 2020 reporting a rise in turnover of 4.6% and underlying profit before tax increasing by 6.1%.
Overall, turnover for the year decreased to £123.6m (2019: £145.8m) demonstrating the impact of three months’ closure
The update comes as Shepherd Neame announced it has cut 10% of its workforce as it prepares for the month-long lockdown.
In a message to customers, CEO Jonathan Neame said the pubco will be requesting more than 90% of its workforce step down from their current roles on a temporary basis.
“This has been the most challenging period any of us in the hospitality industry have ever faced,” says CEO Jonathan Neame.
“I am incredibly proud of how everyone across the business has reacted, and the ingenuity and team spirit shown by our licensees and team members during this time has been inspiring.
“Trading during the summer months was encouraging, highlighting the strength of our offer and people’s undiminished desire to go out and socialise in a safe environment with family and friends.
“We have worked hard to drive positive cash flow in the new financial year and have sufficient liquidity for the foreseeable future. We welcome the ongoing support from the Chancellor, but the sector faces a very tough winter as we return to lockdown with fresh uncertainties.
“Shepherd Neame has weathered many crises in its long history and I am determined that we emerge from this crisis in a position of strength, ready to seize the opportunities that lie ahead.’’
