Source: Sharecast
The Kent-based brewer and pub operator said revenue fell 1.1% to £162.6m, while underlying EBITDA rose 0.8% to £25.6m and underlying pre-tax profit increased 1.8% to £7.8m, in line with market expectations.
Pub trading was the main driver of growth, with retail like-for-like sales up 3.8% and tenanted pub income ahead 2.7%. London was particularly strong, with retail like-for-like sales inside the M25 rising 10.1%.
By contrast, total beer volumes fell 5.4% and own-brand volumes dropped 9.6%. Brewing and Brands revenue declined 4.6% to £42.8m, while divisional underlying operating profit fell to £0.1m from £1.0m as the business was hit by declining volumes and higher logistics costs. A strategic review of the division is now underway.
Statutory pre-tax profit dropped 43% to £3.6m, however, reflecting impairment charges on 15 properties. Nevetheless, the full-year dividend was lifted 3% to 22.15p per share.
Current trading has been stronger, with retail like-for-like sales up 6.7% in the 13 weeks to 26 September and total beer volumes up 1.8%.
Chief executive Jonathan Neame, who is set to succeed Richard Oldfield as executive chairman next month, said the company had enjoyed a “good summer”, but remained cautious about rising inflation, interest rates and the potential impact of a tourism tax.
"The improving trends we saw toward the year end continued into the new financial year, with growth in beer volume. We have also seen a significant step forward in accommodation sales," he said.