Shepherd Neame Ltd - Interim Results

Shepherd Neame

Interim results for the 26 weeks to 27 December 2025

Shepherd Neame, Britain's oldest brewer and owner and operator of high quality pubs in Kent and the Southeast, today announces its results for the 26 weeks ended 27 December 2025.

 

This has been another strong period for our pubs, with an exceptional performance from our London Retail pubs in particular and good trading in our Tenanted estate, offset by volume declines in Brewing and Brands and higher costs of logistics. We have continued to make positive progress against our strategic goals in the first half, completing two major pub projects in London and further investment in repositioning our brand portfolio.

 

 

 

 

 

 

 

 

 

Operational Performance

 

	Performance H1 2026 vs H1 2025
Total retail like-for-like sales[6]	+4.5%
Like-for-like Tenanted pub income[7]	+3.1%
Total beer volume[8]	-6.6%
Own beer volume[9]	-11.6%

 

Operational Highlights

 

Retail

 

 

 

 

 

 

 

Tenanted

 

 

Brewing and Brands

 

Current Trading and Outlook:

 

	Performance versus 2025[10]
35 weeks to 28 February like-for-like Tenanted pub income7	+3.0%
37 weeks to 14 March Retail like-for-like sales6	+4.4%
37 weeks to 14 March total beer8 volume	-6.7%
37 weeks to 14 March own beer9 volume	-11.3%

 

Jonathan Neame, CEO of Shepherd Neame, said:

"Demand has remained resilient, with a further exceptional performance from our London pubs, and a good trading performance in our Tenanted estate. Our strong pub trading and some easing of cost pressures gives us cause for optimism going forward, but some caution is naturally warranted given the situation in the Middle East."

 

18 March 2026

 

NOTES FOR EDITORS

Shepherd Neame is Britain's oldest brewer. Established in 1698 and based in Faversham, Kent it employs around 1,500 people.

At the reporting date, the Company operated 285 pubs, of which 223 were tenanted or leased, 60 managed and two were held as investment properties under commercial free of tie leases. 85% of the estate is freehold. The pub estate ranges from inns and hotels to destination dining, great traditional and local community pubs.

The Company brews, markets and distributes its own beers to national and export customers under a range of highly successful brand names including Spitfire, Bishops Finger, Whitstable Bay and Bear Island.

The Company also has a partnership with Boon Rawd Brewery Company for Singha beer, Thailand's original premium beer.

Shepherd Neame's shares are traded on the AQUIS Stock Exchange Growth Market. See https://www.aquis.eu/companies/SHEP for further information and the current share price. 

For further information on the Company, see www.shepherdneame.co.uk

For further information, please contact:

 

Shepherd Neame Limited Jonathan Neame, Chief Executive Mark Rider, Chief Financial Officer   Engage with the company directly	Tel: +44 (0)1795 532 206 jneame@shepherd-neame.co.uk mrider@shepherd-neame.co.uk   https://investors.shepherdneame.co.uk/link/ya3vjr
Team Lewis Justine Warren Tim Pearson	Tel: +44 (0)7785 555 692 Tel: +44 (0)7983 118 502

 

 

CHAIRMAN'S STATEMENT

OVERVIEW

The half year to 27 December 2025 has been satisfactory, with strong pub results, and good performance of own beer in our pubs, though with a continuing trend of reduced beer sales overall.

 

In general we are pleased with progress: there are encouraging factors, internal and external, which are covered in more detail in the Chief Executive's Review. These include the solidity of consumer demand in pubs; government help in the form of revision to their business rates proposals (following a strong lobbying campaign by the industry); and a successful refinancing exercise. Our new banking facilities are on improved terms; and the two long-term fixed rate loans totalling £55.0m, at a weighted average interest cost of 4.5%, remain at the core of our debt financing.

 

DIVIDEND

The Board is declaring an interim dividend of 4.50p per share, an increase of 3.4%. The dividend will be paid on 14 April 2026 to those shareholders on the register on 27 March 2026.

 

It is our intention that, in a full year, the combination of final and interim dividends grows at a rate higher than the rate of increase in the consumer price index. While this may not always be sensibly achievable, this policy reflects our commitment to see that the income shareholders receive from the Company's shares at least holds its own in relation to inflation.

 

CAPITAL ALLOCATION

We continually review how the Company allocates and uses free cash flow from operations - that is to say, cash flow after tax and before depreciation. In the year to 28 June 2025, the total dividend amounted to approximately £3.1m. A significant part of free cash flow is devoted to core spending to maintain the pub estate in good condition (and thus producing satisfactory growth in trading profits). As a general rule we expect this core spending to be roughly in line with depreciation, currently in the order of £9m.

 

Capital spending for development and enhancement of the existing estate, through expansion of premises or remodelling of the use of space, will remain our primary use of cash flow after core spending and dividends. There are significant opportunities to increase revenues and profits through such carefully targeted spending, aiming at a return on investment in the region of 15% or more and the Board sees this as the primary route to maximising returns. On current figures we would expect to be able to direct around £3m in a full year to such investments.

 

Share buybacks at around the current share price funded from free cash flow increase earnings per share (more than a reduction in debt, less than development investment at the expected return) and increase net asset value per share. We carried out a modest buyback programme in the last financial year and, while our share price remains depressed, this remains an attractive use of cash. We intend to embark on a programme of share buybacks of around £1m in the new financial year.

 

We aim to grow the business principally by developing our existing estate to unlock the many opportunities we have. Periodically we may also make single site acquisitions where especially advantageous. Judicious disposal of assets, including surplus land available for housing or other development, is a part of our business activity. The timing and amount of such disposals are subject to the vagaries of planning. Where proceeds from these disposals become available, we will allocate as we feel appropriate at the time, including to debt reduction or to acquisitions.

 

Over time we expect that leverage in the balance sheet will reduce relative to EBITDA and in absolute terms; the Board aims gradually to reduce net debt towards three times EBITDA. The refinancing covered in the Chief Executive's Review provides a firm base. Reduction in debt, funded from free cash flow, has a beneficial effect on earnings because of the saving in interest costs.

 

All these figures are indicative and approximate; we hope they are helpful to shareholders in understanding our priorities in the allocation of cash flow.

 

OUTLOOK

Life is never certain and the impact of the Iranian war introduces a new uncertainty; but six years on from Covid-19, which was the beginning of a uniquely turbulent period for the Company and its sector, we have been seeing increasing stability. Whatever the economic circumstances are at the time, our firm focus is to ensure that our customers' experience is paramount. The Company will always have issues to grapple with as well as opportunities to exploit, and we are pleased to have a senior management team who are well equipped, in capability and experience, to deliver our long-term strategic plan.

Richard Oldfield

Chairman

 

 

CHIEF EXECUTIVE'S REVIEW

OVERVIEW

This has been a solid period for the Company, with a strong performance in our Retail pub business, offset by ongoing challenges in Brewing and Brands.

 

Demand has remained resilient, with a further exceptional performance from our London pubs, and a good trading performance in our tenanted estate.

 

After the sunny weather in early summer 2025, this settled into a more normal weather pattern from the start of our financial year. We achieved modest growth at the start of the new financial year, with fragile consumer confidence ahead of the Budget in 2025, similar to the prior year. This was followed by exceptional Christmas trade, with many sites breaking daily and weekly records - including several previously set during the strong 2024 Christmas period.

 

We have continued our development programme in our pub estate with two major projects in London, a number of small sparkle projects, and targeted spend to ensure our estate remains well presented and well maintained.

 

We have continued to invest in repositioning our brand portfolio and have launched new designs during the period.

 

FINANCIAL RESULTS

For the half year, most underlying profit metrics were in line with the previous year.

 

This has been achieved after absorbing £1.2m of labour inflation, including National Insurance Contribution (NIC) changes for 2024, and £0.8m of incremental logistics costs from the prior year.

 

While the labour changes impact all in the sector, the logistics costs are specific to us. Underlying momentum is good, with underlying operating profit adjusted to exclude the incremental logistics costs, up by +10.4%.

 

Revenue was £84.7m (H1 2025: £85.0m), with increased revenues in our pub estate offset by a decline in the Brewing and Brands division.

 

Underlying operating profit was £7.2m (H1 2025: £7.3m), a decrease of -0.9% on the prior year.

 

Underlying profit before tax was level at £4.2m (H1 2025: £4.2m).

 

Statutory profit before tax was up +2.7% at £4.4m (H1 2025: £4.3m).

 

Underlying basic earnings per share were 20.3p (H1 2025: 20.1p). Basic earnings per share were 21.0p (H1 2025: 20.3p).

 

Net assets per share were 12.34p (H1 2025: £12.21).

 

CASHFLOW, NET DEBT, AND INVESTMENT

Cashflow remains robust. We have managed to absorb cost inflation through targeted price increases and other efficiencies and underlying EBITDA has grown by +0.8% to £13.1m (H1 2025: £13.0m).

 

In the first half, we invested £6.2m (H1 2025: £8.8m) in capital expenditure. We made no acquisitions during this period.

 

Net debt, excluding lease liabilities, was £84.7m (H1 2025: £84.4m). Statutory net debt was £135.1m (H1 2025: £135.8m).

 

REFINANCING

The Company has refinanced its bank debt on improved terms. We have entered into a new £15.0m term loan facility, and a revolving credit facility (RCF) for £30.0m. The existing two tranches of long-term fixed rate private placement debt totalling £55.0m remain unaffected.

 

Total debt facilities are now £100.0m, with the RCF and term loan on a 3-year term, with further extension options. These facilities have been provided by the same banks as previously.

 

TENANTED AND RETAIL PUB OPERATIONS

OVERVIEW

As at 27 December 2025, we owned 285 pubs (June 2025: 286) of which 223 (June 2025: 217) are tenanted or leased and 60 (June 2025: 67) are retail pubs. Two (June 2025: two) are operated on a free-of-tie basis as investment properties. 85% of our pubs are owned freehold.

 

As a consequence of the cost pressures impacting certain types of pub operations, we have transferred six pubs from retail to tenanted during the period, with a further two due to transfer by the end of March 2026. We have disposed of the leasehold of the Freemasons Arms in the period.

 

In recent years we have focused our development capital on upgrading key London sites, with considerable success, as this is where there is particularly strong footfall and high disposable income. We have a number of further sites within central London that would support further development capital in due course.

 

The two major projects during the period were the development of The White Horse and Bower in Westminster, which opened in October 2025, and The Hoop and Grapes in Farringdon Street, which opened in February 2026. Both outlets have been shut for several years whilst neighbouring properties were redeveloped. Both have had an excellent start and we are confident of their long-term success.

 

As we look ahead to 2027, we are preparing plans to step up investment in our inns and hotels. Occupancy is softer in some sites after the strong trading in recent years. We have commenced several room refurbishments during the period.

 

We continue to be recognised for the high standards that we achieve. We are delighted that The White Horse and Bower is a finalist for the Best New Site at the Publican Awards. Also, we are pleased that our investment in training in recent years has received recognition, with our Chef Academy being named the Best Training Programme, and Claire Illman, our Trade Customer Relations Manager, named Hospitality Apprentice of the Year - Operations, in the BII National Innovation in Training Awards (NITAs).

 

Notwithstanding strong consumer demand, the sector continues to be beset by high costs. The cumulative impact of NIC changes, multiple years of above inflation National Living Wage increases, and packaging taxes, have all impacted margins.

 

The sector was expecting the Business Rates review to re-balance the sector to fairer taxes in the Budget 2025. The initial outcome was a great shock, with many pubs facing rates increases of as much as 65%. The Government announced a reversal in January 2026 to provide additional support and much needed relief to our licensees.

 

This new package gives a 15% reduction in each pub's business rates for the next three years and caps any increase in line with inflation until 2029. Importantly a review of the methodology used to calculate business rates - which is inherently unfair - has been announced and will take place ahead of the 2029 revaluation. 

 

The sector wants to pay its fair share of taxes, but the increases of the last few years have been disproportionate.

 

RETAIL PUBS AND HOTELS

Everyone in hospitality has battled with the significant increases in the cost of labour in the last year. Our performance remains encouraging in the context of these cost and operational challenges. We have successfully reduced hours of operation and flexed our labour to suit demand; we have increased prices, whilst remaining conscious of the need to maintain value for money.

 

For the 26 weeks to 27 December 2025, our retail pubs achieved strong like-for-like sales growth of +4.5% (H1 2025: +4.4%). This was driven by a further outstanding performance from those sites within the M25, where like-for-like sales were +11.2% (H1 2025: +9.0%). Outside the M25 we enjoyed growth of +1.4% (H1 2025: +2.3%).

 

For the adjusted Christmas period, for the five weeks to 3 January 2026, like-for-like retail sales were up significantly at +8.1%, delivered against a tough prior year comparator (H1 2025: +7.4%).

 

For the 26 weeks to 27 December 2025, like-for-like drinks sales were +5.6% (H1 2025: +5.5%), like-for-like food sales were +4.3% (H1 2025: 2.4%) and like-for-like accommodation sales were -3.0% (H1 2025: +3.9%).

 

As at 27 December 2025, we operated 224 rooms (December 2024: 224 rooms). Occupancy was down at 70.2% (H1 2025: 74.6%). Revenue per available room was £91 (H1 2025: £94).

 

Divisional revenue was up +0.1%, trading on seven fewer pubs, at £42.3m (H1 2025: £42.3m) and divisional underlying operating profit was up +5.8% at £5.8m (H1 2025: £5.5m).

 

TENANTED PUBS

We have enjoyed good growth in like-for-like net pub income, with a strong step forward on the prior year, at +3.1% (H1 2025: +0.3%).

 

Divisional revenue in Tenanted pubs was up +4.8% to £19.0m (H1 2025: £18.2m) and divisional underlying operating profit was £6.4m (H1 2025: £6.6m), after having invested an additional £0.2m in property maintenance and incurring £0.2m of additional distribution costs against the prior year.

 

We carried out four development projects in the period, with great projects at the Market Inn in Faversham and the Curlew in Chelmsford. We are currently on site at The Three Lions in Farncombe and have a number of projects planned for the second half.

 

We are rolling out a new Tenanted Partnership model. Initial indications are that this is proving an exciting new model intended to drive down costs for our licensees and build their retail skills and operating margins, for the benefit of both parties.

 

BREWING AND BRANDS

This division continues to find conditions challenging - particularly with national customers - with volumes in decline, costs increasing, and a shift away from traditional ale categories to stout and premium lager categories.

 

The team continue to work hard to re-position the business and find new areas of growth. The account base in our heartland has grown, and we continue to have a good pipeline of opportunities.

 

We have focused our efforts on refreshing our brand portfolio, driving own beer sales in our pub estates, building a stronger heartland, and reducing our exposure to lower margin national business.

 

We have seen strong increases in own beer volume in our pub estate following the brand launch of First Drop IPA and Iron Wharf Stout, and the brand refreshes in our existing portfolio of Whitstable Bay, Spitfire Amber Ale and Bishops Finger.

 

Total volume, across all channels, was down -6.6% at 80,000 brewers barrels, with own beer volume down -11.6%. Own beer volumes in our Retail and Tenanted pubs are up +8.0% and +6.5% respectively.

 

Revenue in the Brewing and Brands division reduced by -4.7% to £22.7m (H1 2025: £23.8m), and divisional underlying operating profit was £0.3m (H1 2025: £0.6m).

 

INVESTMENT PROPERTY

As at December 2025, the Company owned investment property valued at £7.3m (June 2025: £7.1m). We continue to pursue a number of development projects on our various land holdings, and we are pleased that one of the smaller opportunities - the Queen Court farmyard - has now finally received planning permission and we will provide a further update in our preliminary results.

 

SUMMARY AND OUTLOOK

Our pub business is in good shape and continues to benefit from strong demand, a good offering, a well invested pub portfolio, great training programmes, some excellent recent developments, and a good pipeline of future opportunities.

 

The pubs team have done an excellent job at absorbing the higher labour costs and delivering good divisional profit growth in our retail pubs. The Brewing & Brands business is much more challenging. The team are addressing these issues head on and making good progress in our heartland. The growth in pubs is not yet enough to combat the decline in Brewing and Brands; hence the overall business is level on the prior year.

 

We said previously that it would take 18 months to absorb the higher costs of employment and logistics. By Q4 2026, we will annualise these cost increases. The business rates reduction and National Living Wage increases more closely aligned with CPI are encouraging factors, as are the improved terms, following our refinancing. We had expected the cost outlook to be more benign, but some caution is naturally warranted given the unpredictable situation in the Middle East; it would be premature to say more.

 

For the 37 weeks to 14 March 2026, like-for-like sales in our retail pubs were +4.4% vs 2025. Like-for-like tenanted pub income for the 35 weeks to 28 February 2026 was +3.0% vs 2025. For the 37 weeks to 14 March 2026, total beer volume was -6.7% vs 2025. Own beer volume was -11.3% vs 2025.

 

The trade is becoming more seasonal and more reliant on occasions and we look forward to a strong spring and summer.

 

The combination of resilient demand and some easing of cost pressures give us cause for optimism. Our robust, asset-backed and cash-generative business model provides good opportunities for allocating our capital to investment in the business in order to drive higher returns for shareholders.

Jonathan Neame

Chief Executive

 

 

Group income statement
For the 26 weeks ended 27 December 2025

 

		Unaudited 26 weeks ended 27 December 2025			Unaudited 26 weeks ended 28 December 2024			Audited  52 weeks ended 28 June 2025
	Note	Underlying results £'000	Items excluded from underlying results £'000	Total statutory £'000	Underlying results £'000	Items excluded from underlying results £'000	Total statutory £'000		Total  statutory £'000
Revenue	3	84,671	-	84,671	85,040	-	85,040		164,302
Other operating income		-	-	-	-	-	-		371
Operating charges		(77,453)	(463)	(77,916)	(77,754)	(75)	(77,829)		(152,578)
Operating profit	2, 3	7,218	(463)	6,755	7,286	(75)	7,211		12,095
Net finance costs	2, 4	(2,977)	-	(2,977)	(3,055)	-	(3,055)		(6,128)
Profit on disposal of property	2	-	438	438	-	2	2		221
Investment property fair value movements	2	-	172	172	-	113	113		104
Profit before taxation		4,241	147	4,388	4,231	40	4,271		6,292
Taxation	5	(1,268)	(42)	(1,310)	(1,265)	(11)	(1,276)		(1,877)
Profit after taxation		2,973	105	3,078	2,966	29	2,995		4,415
Earnings per 50p ordinary share	7
Basic				21.0p			20.3p		30.0p
Diluted				20.9p			20.1p		29.9p

All results are derived from continuing activities.

 

GROUP STATEMENT OF COMPREHENSIVE INCOME
For the 26 weeks ended 27 December 2025

 

	Note	Unaudited 26 weeks ended 27 December 2025 £'000	Unaudited 26 weeks ended 28 December 2024 £'000	Audited 52 weeks ended 28 June 2025 £'000
Profit after taxation		3,078	2,995	4,415
Items that may be reclassified subsequently to profit or loss:
Gains/(losses)arising on cash flow hedges during the period		88	7	(77)
Income tax relating to these items	5	(22)	(2)	19
Other comprehensive gains/(losses)		66	5	(58)
Total comprehensive income		3,144	3,000	4,357

 

 

GROUP STATEMENT OF FINANCIAL POSITION
As at 27 December 2025

 

	Note	Unaudited 27 December 2025 £'000	Unaudited 28 December 2024 £'000	Audited 28 June 2025 £'000
Non-current assets
Goodwill and intangible assets		236	262	249
Property, plant and equipment	8	284,216	285,011	284,431
Investment properties		7,297	7,061	7,106
Right-of-use assets	9	42,941	43,386	44,040
		334,690	335,720	335,826
Current assets
Inventories		8,662	7,447	8,821
Trade and other receivables		14,992	16,752	16,206
Cash and cash equivalents		421	358	298
Assets held for sale		2,605	905	672
		26,680	25,462	25,997
Current liabilities
Trade and other payables		(26,213)	(26,260)	(27,343)
Borrowings		(2,065)	(1,868)	(1,600)
Lease liabilities	9	(3,215)	(3,210)	(3,392)
		(31,493)	(31,338)	(32,335)
Net current liabilities		(4,813)	(5,876)	(6,338)
Total assets less current liabilities		329,877	329,844	329,488
Non-current liabilities
Lease liabilities	9	(47,240)	(48,180)	(47,951)
Borrowings		(83,034)	(82,931)	(82,432)
Derivative financial instruments		(211)	(239)	(297)
Deferred tax liabilities		(17,184)	(17,072)	(17,292)
		(147,669)	(148,422)	(147,972)
Net assets		182,208	181,422	181,516
Capital and reserves
Share capital		7,384	7,429	7,384
Share premium account		1,099	1,099	1,099
Revaluation reserve		31	31	31
Own shares		(950)	(995)	(995)
Capital redemption reserve		45	-	45
Hedging reserve		22	19	(44)
Retained earnings		174,577	173,839	173,996
Total equity		182,208	181,422	181,516

 

 

GROUP STATEMENT OF CHANGES IN EQUITY
For the 26 weeks ended 27 December 2025

 

	Note	Share capital £'000	Share premium account £'000	Revaluation reserve £'000	Own shares £'000	Capital redemption reserve £'000	Hedging reserve £'000	Retained earnings £'000	Total) £'000)
Balance at 28 June 2025		7,384	1,099	31	(995)	45	(44)	173,996	181,516
Profit for the period		-	-	-	-	-	-	3,078	3,078
Gains arising on cash flow hedges during the period		-	-	-	-	-	88	-	88
Tax relating to components of other comprehensive income	5	-	-	-	-	-	(22)	-	(22)
Total comprehensive income		-	-	-	-	-	66	3,078	3,144
Ordinary dividends paid		-	-	-	-	-	-	(2,509)	(2,509)
Accrued share-based payments		-	-	-	-	-	-	54	54
Distribution of own shares		-	-	-	45	-	-	(42)	3
Balance at 27 December 2025		7,384	1,099	31	(950)	45	22	174,577	182,208
Balance at 29 June 2024		7,429	1,099	31	(1,028)	-	14	173,262	180,807
Profit for the period		-	-	-	-	-	-	2,995	2,995
Gains arising on cash flow hedges during the period		-	-	-	-	-	7	-	7
Tax relating to components of other comprehensive income	5	-	-	-	-	-	(2)	-	(2)
Total comprehensive income		-	-	-	-	-	5	2,995	3,000
Ordinary dividends paid		-	-	-	-	-	-	(2,433)	(2,433)
Accrued share-based payments		-	-	-	-	-	-	46	46
Distribution of own shares		-	-	-	33	-	-	(31)	2
Balance at 28 December 2024		7,429	1,099	31	(995)	-	19	173,839	181,422

 

 

GROUP STATEMENT OF CASH FLOWS
For the 26 weeks ended 27 December 2025

 

		Unaudited 26 weeks ended 27 December 2025		Unaudited 26 weeks ended 28 December 2024		Audited)) 52 weeks ended)) 28 June 2025))
	Note	£'000	£'000	£'000	£'000	£'000	£'000 ))
Cash flows from operating activities	10a
Cash generated from operations		12,546		11,746		24,888
Income taxes paid		(573)		(400)		(2,939)
Net cash generated by operating activities			11,973		11,346		21,949
Cash flows from investing activities
Proceeds from disposal of property, plant and equipment		107		29		502
Proceeds from disposal of assets held for sale		257		233		1,576
Purchases of property, plant and equipment, and lease premiums		(6,195)		(5,262)		(11,410)
Freehold purchase of previously leased property		-		(3,571)		(3,571)
Net cash used in investing activities			(5,831)		(8,571)		(12,903)
Cash flows from financing activities
Dividends paid	6	(2,509)		(2,433)		(3,071)
Interest paid		(2,246)		(2,337)		(4,343)
Payments of principal portion of lease liabilities	9	(2,232)		(2,362)		(4,649)
Repayment of term loan		-		-		(1,600)
Proceeds from borrowings	10c	500		-		1,000
Purchase of own shares		-		-		(532)
Share option proceeds		3		2		2
Net cash used in financing activities			(6,484)		(7,130)		(13,193)
Net movement in cash and cash equivalents			(342)		(4,355)		(4,147)
Cash and cash equivalents at beginning of the period			298		4,445		4,445
Cash and cash equivalents at end of the period			(44)		90		298
Consisting of:
Cash and balances held at banks			421		358		298
Bank overdrafts1			(465)		(268)		-
			(44)		90		298

 

1Bank overdrafts are disclosed within current borrowings.

 

 

NOTES TO THE FINANCIAL STATEMENTS

 

1 Accounts
General information and basis of preparation

The consolidated interim financial statements, which are unaudited, do not constitute statutory accounts as defined in section 434 of the Companies Act 2006. Statutory accounts for the 52 weeks ended 28 June 2025, upon which the auditors issued an unqualified opinion and did not make any statement under section 498 of the Companies Act 2006, have been filed with the Registrar of Companies. The financial information comprises the results of Shepherd Neame Limited (the "Company") and its subsidiaries (the "Group").

The consolidated interim financial statements have been prepared in accordance with UK-adopted International Accounting Standards. These standards are applied from 29 June 2025, with no changes to the accounting policies set out in the statutory accounts of Shepherd Neame Limited for the period ended 28 June 2025, except for those noted below. The financial statements have not been prepared (and are not required to be prepared) in accordance with IAS 34 Interim Financial Reporting, with the exception of note 5, Taxation, where the tax charge for the 26 weeks to 27 December 2025 has been calculated using an estimate of the full year effective tax rate, in line with the principles of IAS 34. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of this financial information.

The interim financial statements are presented in pounds sterling and all values are shown in thousands of pounds (£'000) rounded to the nearest thousand (£'000), unless otherwise stated.

The financial information for the 52 weeks ended 28 June 2025 is extracted from the statutory accounts of the Group for that year.

New IFRS accounting standards and amendments effective in the period

The below accounting policies are applicable for the 52 weeks ended 27 June 2026 and have therefore been applied to the 26 weeks ended 27 December 2025.

 

 

The adoption of these amendments has not had any impact on the interim financial statements of the Group.

 

New IFRS accounting standards and amendments not yet effective

The new standards and amendments listed below are not yet effective and the Group has elected not to early-adopt:

 

 

The Directors do not expect that the adoption in future periods will have a material impact.

 

2 Non-GAAP reporting measures

Certain items recognised in reported profit or loss before tax can vary significantly from year to year and therefore create volatility in reported earnings which does not reflect the underlying performance of the Group. The Directors believe that 'underlying operating profit', 'underlying profit before tax', 'underlying basic earnings per share', 'underlying earnings before interest, tax, depreciation, and amortisation' as presented provide a clear and consistent presentation of the underlying performance of the ongoing business for shareholders. Underlying profit is not defined by IFRS and therefore may not be directly comparable with the 'adjusted' profit measures of other companies. The adjusted items are:

·   profit or loss on disposal of properties;

·   investment property fair value movements;

·   operating and finance charges/credits which are either material or infrequent in nature and do not relate to the underlying performance;

·   fair value movements on financial instruments charged to profit and loss; and

·   taxation impacts of the above (see note 5).

	26 weeks ended 27 December 2025 £'000	26 weeks ended 28 December 2024 £'000	52 weeks ended 28 June 2025 £'000
Underlying EBITDA	13,124	13,022	25,435
Depreciation and amortisation	(5,860)	(5,703)	(11,727)
(Loss)/profit on sale of assets (excluding property)	(46)	(33)	36
Underlying operating profit	7,218	7,286	13,744
Net underlying finance costs pre IFRS 16	(2,360)	(2,468)	(4,942)
Net underlying finance costs	(2,977)	(3,055)	(6,128)
Underlying profit before taxation	4,241	4,231	7,616
Profit on disposal of properties	438	2	221
Investment property fair value movements	172	113	104
Separately disclosed operating charges:
Impairment of intangible assets, properties, right-of-use assets, and assets held for sale	(463)	(75)	(990)
Other operating charges excluded from underlying results	-	-	(659)
Profit before taxation	4,388	4,271	6,292

Separately disclosed operating charges:

During the 26 weeks ended 27 December 2025, separately disclosed operating charges comprised:

a)   An impairment charge of £438,000 relating to assets impaired on reclassification to assets held-for-sale;

b)   An impairment charge of £25,000 relating to assets held-for-sale, that were classified as such at the beginning of the period.

 

During the 26 weeks ended 28 December 2024, separately disclosed operating charges comprised:

a)   An impairment charge of £75,000 relating to assets classified as held-for-sale.

 

During the 52 weeks ended 28 June 2025, separately disclosed operating charges comprised:

a)   A net impairment charge of £990,000 in relation to 15 freehold properties and eight right-of-use assets;

b)   A charge of £659,000 relating to the newly enacted Enhanced Producer Responsibility (EPR) levy which came into operation in April 2025. This had a one-off impact on reported results in the year as we transitioned to the new regime.

 

3 Segmental reporting

The accounting policy for identifying segments is based on internal management reporting information that is regularly reviewed by the Chief Operating Decision Maker (CODM). The CODM is the Chief Executive.

The Group has three operating segments, which are largely organised and managed separately according to the nature of the products and services provided and the profile of their customers:

Brewing and Brands, which comprises the brewing, marketing and sales of beer and other products; Retail Pubs and Hotels; and Tenanted Pubs, which comprises pubs operated by third parties under tenancy or tied lease agreements.

Transfer prices between operating segments are set on an arm's-length basis.

The Group has elected, as provided under IFRS 8 Operating Segments (amended), not to disclose a measure of segment assets and liabilities.

26 weeks ended 27 December 2025	Brewing and Brands £'000	Retail Pubs and Hotels £'000	Tenanted  Pubs £'000	Unallocated1 £'000	Total £'000
Revenue	22,678	42,284	19,044	665	84,671
Underlying operating profit/(loss)	318	5,808	6,381	(5,289)	7,218
Items excluded from underlying results	-	(388)	(75)	-	(463)
Segmental operating profit/(loss)	318	5,420	6,306	(5,289)	6,755
Net underlying finance costs					(2,977)
Profit on disposal of property					438
Investment property fair value movements					172
Profit before taxation					4,388
Other segment information
Capital expenditure - tangible assets	866	3,443	1,365	521	6,195
Depreciation and amortisation pre IFRS 16	886	1,737	1,465	117	4,205
Depreciation and amortisation	927	2,607	1,959	367	5,860
Impairment of property, plant and equipment	-	-	25	-	25
Impairment of assets held for sale	-	388	50	-	438
Underlying segmental EBITDA pre IFRS 16	1,221	7,689	7,608	(5,043)	11,475
Underlying segmental EBITDA	1,265	8,441	8,320	(4,902)	13,124
Number of pubs	-	60	223	2	285

 

1 £665,000 of unallocated income includes rent receivable from investment properties and other non-core trading income. Unallocated expenses primarily represent Head Office support costs.

 

26 weeks ended 28 December 2024	Brewing and Brands £'000	Retail Pubs and Hotels £'000	Tenanted  Pubs £'000	Unallocated1 £'000	Total £'000
Revenue	23,792	42,251	18,173	824	85,040
Underlying operating profit/(loss)	574	5,490	6,554	(5,332)	7,286
Items excluded from underlying results	-	-	(75)	-	(75)
Segmental operating profit/(loss)	574	5,490	6,479	(5,332)	7,211
Net underlying finance costs					(3,055)
Profit on disposal of property					2
Investment property fair value movements					113
Profit before taxation					4,271
Other segment information
Capital expenditure - tangible assets	850	1,903	1,650	896	5,299
Depreciation and amortisation pre IFRS 16	839	1,644	1,351	271	4,105
Depreciation and amortisation	869	2,616	1,811	407	5,703
Impairment of assets held for sale	-	-	75	-	75
Underlying segmental EBITDA pre IFRS 16	1,402	6,678	7,640	(5,085)	10,635
Underlying segmental EBITDA	1,447	8,109	8,388	(4,922)	13,022
Number of pubs	-	67	221	2	290

 

1 £824,000 of unallocated income includes rent receivable from investment properties and other non-core trading income. Unallocated expenses primarily represent Head Office support costs.

 

52 weeks ended 28 June 2025	Brewing and Brands £'000	Retail Pubs and Hotels £'000	Tenanted  Pubs £'000	Unallocated1 £'000	Total £'000
Revenue	44,812	82,631	35,638	1,221	164,302
Underlying operating profit/(loss)	970	9,978	12,562	(9,766)	13,744
Items excluded from underlying results	(648)	(195)	(806)	-	(1,649)
Segmental operating profit/(loss)	332	9,783	11,756	(9,766)	12,095
Net underlying finance costs					(6,128)
Profit on disposal of property					221
Investment property fair value movements					104
Profit before taxation					6,292
Other segment information
Capital expenditure - tangible and intangible assets	1,881	4,513	3,618	1,398	11,410
Depreciation and amortisation pre IFRS 16	1,718	3,332	2,764	635	8,449
Depreciation and amortisation	1,808	5,317	3,776	826	11,727
Impairment of property, plant and equipment, and assets held for sale	-	1,805	220	-	2,025
(Impairment reversal)/impairment of right-of-use assets	-	(1,618)	583	-	(1,035)
Underlying segmental EBITDA pre IFRS 16	2,636	12,538	15,515	(9,178)	21,511
Underlying segmental EBITDA	2,727	15,303	16,356	(8,951)	25,435
Number of pubs	-	67	217	2	286

 

1 £1,221,000 of unallocated income includes rent receivable from investment properties and other non-core trading income. Unallocated expenses primarily represent Head Office support costs.

 

4 Net finance costs

	26 weeks ended 27 December 2025 Total statutory £'000	26 weeks ended 28 December 2024 Total statutory £'000	52 weeks ended 28 June 2025 Total statutory £'000
Finance costs
Interest expense arising on:
Financial liabilities at amortised cost - bank loans	2,328	2,427	4,865
Financial liabilities at amortised cost - lease liabilities	617	587	1,186
Other financial liabilities not at fair value through profit and loss	32	41	77
Net finance costs	2,977	3,055	6,128

 

5 Taxation

	26 weeks ended 27 December 2025			26 weeks ended 28 December 2024			52 weeks ended 28 June 2025
Tax charged to the income statement	Underlying results £'000	Items excluded from underlying results £'000	Total statutory £'000	Underlying results £'000	Items excluded from underlying results £'000	Total statutory £'000	Total statutory  £'000
Current income tax charge	1,355	85	1,440	1,213	5	1,218	1,578
Deferred income tax (credit)/charge	(87)	(43)	(130)	52	6	58	299
Total tax charged to the income statement	1,268	42	1,310	1,265	11	1,276	1,877
Tax charged to other comprehensive income
Deferred tax charge/(credit)			22			2	(19)
Total tax charged/(credited) to other comprehensive income			22			2	(19)

 

Taxation on the underlying result for the 26 weeks ended 27 December 2025 has been provided at 29.9% (2024: 29.9%) based on the current best estimate of the effective tax rate for the 52 weeks to 27 June 2026. The average statutory rate of corporation tax for the 52 weeks to 27 June 2026 is expected to be 25% (52 weeks to 28 June 2025 expected at 28 December 2024: 25%). The increase in underlying rate ahead of the statutory rate is due to the level of disallowable property depreciation and other disallowable expenditure.

 

6 Dividends

	26 weeks ended 27 December 2025 £'000	26 weeks ended 28 December 2024 £'000	52 weeks ended 28 June 2025 £'000
Declared and paid during the year
Final dividend for 2025: 17.15p (2024: 16.50p) per ordinary share	2,509	2,433	2,433
Interim dividend for 2025: 4.35p per ordinary share	-	-	638
Dividends paid	2,509	2,433	3,071

 

The interim dividend, in respect of the period ended 27 December 2025, at a cost of £660,000 (for the period ended 28 December 2024: £638,000), is to be paid on 14 April 2026 to shareholders on the register at the close of business on 27 March 2026.

 

7 Earnings per share

	26 weeks ended 27 December 2025 £'000	26 weeks ended 28 December 2024 £'000	52 weeks ended 28 June 2025 £'000
Profit attributable to equity shareholders	3,078	2,995	4,415
Items excluded from underlying results	(105)	(29)	959
Underlying profit attributable to equity shareholders	2,973	2,966	5,374
	Number '000	Number '000	Number '000
Weighted average number of shares in issue	14,655	14,741	14,711
Dilutive outstanding options	66	139	53
Diluted weighted average share capital	14,721	14,880	14,764
Earnings per 50p ordinary share
Basic	21.0p	20.3p	30.0p
Diluted	20.9p	20.1p	29.9p
Underlying basic	20.3p	20.1p	36.5p

 

The basic earnings per share figure is calculated by dividing the profit attributable to equity shareholders of the parent company for the period by the weighted average number of ordinary shares in issue during the period.

Diluted earnings per share have been calculated on a similar basis taking into account 66,000 (2024: 139,000) dilutive potential shares, which excludes shares held by trusts in respect of employee incentive plans and options.

Underlying basic earnings per share are presented to eliminate the effect of the non-underlying items and the tax attributable to those items on basic and diluted earnings per share.

 

8 Property, plant and equipment

Group and Company	Freehold properties £'000	Leasehold properties under 50 years £'000	Plant, machinery, vehicles and containers £'000	Fixtures and fittings £'000	Assets under construction £'000	Total £'000
Valuation or cost
At 29 June 2024	250,717	2,300	39,370	106,993	4,283	403,663
Additions	1,523	131	1,082	7,441	1,754	11,931
Disposals	-	(2)	-	(575)	(25)	(602)
Transfers within property, plant and equipment	1,080	184	116	1,923	(3,303)	-
Transfers from right-of-use assets	1,810	-	-	-	-	1,810
Transfers to investment property	-	-	-	-	(40)	(40)
Transfers to assets held for sale	(1,382)	(406)	-	(1,089)	(1)	(2,878)
At 28 June 2025	253,748	2,207	40,568	114,693	2,668	413,884
Additions	79	16	133	2,696	3,252	6,176
Disposals	-	-	-	(526)	(5)	(531)
Transfers within property, plant and equipment	22	31	-	888	(941)	-
Transfers to right-of-use assets	-	(224)	-	-	-	(224)
Transfers to assets held for sale	(1,781)	-	-	(940)	-	(2,721)
At 27 December 2025	252,068	2,030	40,701	116,811	4,974	416,584
Accumulated depreciation and impairment
At 29 June 2024	16,712	1,351	33,974	69,245	2	121,284
Charge for year	607	43	1,018	6,569	-	8,237
Impairment/(reversal of impairment)	1,944	(261)	-	253	(30)	1,906
Disposals	-	(9)	-	(340)	(1)	(350)
Transfers to assets held for sale	(338)	(425)	-	(861)	-	(1,624)
At 28 June 2025	18,925	699	34,992	74,866	(29)	129,453
Charge for period	303	36	529	3,223	-	4,091
Impairment	20	-	-	5	-	25
Disposals	-	-	-	(379)	-	(379)
Transfers within property, plant and equipment	4	-	-	2	(6)	-
Transfers to right-of-use assets	-	(179)	-	-	-	(179)
Transfers to assets held for sale	(101)	-	-	(542)	-	(643)
At 27 December 2025	19,151	556	35,521	77,175	(35)	132,368
Net book values
At 27 December 2025	232,917	1,474	5,180	39,636	5,009	284,216
At 28 June 2025	234,823	1,508	5,576	39,827	2,697	284,431
At 29 June 2024	234,005	949	5,396	37,748	4,281	282,379

 

During the 26 weeks ended 27 December 2025, the Group recognised an impairment charge of £25,000 (2024: £75,000) in respect of the write-down of one freehold property (2024: one freehold property) to its recoverable value within assets held for sale, and a further £50,000 impairment was charged on the same property after its reclassification to assets held for sale. During the 52 weeks ended 28 June 2025, the Group recognised a charge of £990,000 in relation to 15 freehold properties and eight right-of-use assets.

 

9 Lease liabilities and right-of-use assets

Set out below are the carrying amounts of the Group's right-of-use assets and lease liabilities, and the movements during the period:

Group and Company	Right-of-use assets £'000	Lease liabilities £'000
Net carrying value as at 29 June 2024	45,406	55,254
Additions	1,001	1,005
Disposals	(28)	(3,610)
Transfers to property, plant and equipment	(1,810)	-
Transfers to assets held for sale	(258)	-
Lease amendments - other1	2,156	2,157
Depreciation	(3,462)	-
Impairment reversal	1,035	-
Accretion of interest	-	1,186
Payments	-	(4,649)
Net carrying value as at 28 June 2025	44,040	51,343
Additions	1,432	1,431
Disposals	(319)	(827)
Transfers from property, plant and equipment	45	-
Transfers to assets held for sale	(625)	-
Lease amendments - other1	123	123
Depreciation	(1,755)	-
Accretion of interest	-	617
Payments	-	(2,232)
Net carrying value as at 27 December 2025	42,941	50,455
Lease liabilities are disclosed as:
Current lease liabilities		3,215
Non-current lease liabilities		47,240
		50,455

 

Right-of-use assets predominantly relate to leasehold properties, along with motor vehicles and other equipment.

1.   Lease amendments include lease terminations, modifications, reassessments and extensions to existing lease arrangements.

 

10 Notes to the Cash Flow Statement

a Reconciliation of operating profit to cash generated by operations

	26 weeks ended 27 December 2025			26 weeks ended 28 December 2024	52 weeks ended 28 June 2025
	Underlying results £'000	Excluded from underlying results £'000	Total £'000	Total £'000	Total £'000
Operating profit	7,218	(463)	6,755	7,211	12,095
Adjustment for:
Depreciation and amortisation	5,860	-	5,860	5,703	11,727
Impairment of property, plant and equipment	-	25	25	-	1,906
Impairment reversal of right-of-use assets	-	-	-	-	(1,035)
Impairment of assets held for sale	-	438	438	75	119
Share-based payments expense/(credit)	54	-	54	46	(47)
Decrease/(increase) in inventories	159	-	159	1,084	(290)
Decrease/(increase) in debtors and prepayments	1,214	-	1,214	(1,182)	(636)
(Decrease)/Increase in creditors and accruals	(2,005)	-	(2,005)	(1,224)	1,085
Loss/(profit) on sale of assets (excluding property)	46	-	46	33	(36)
Income tax paid	(573)	-	(573)	(400)	(2,939)
Net cash inflow from operating activities	11,973	-	11,973	11,346	21,949

 

b Reconciliation of movement in cash to movement in net debt

Group and Company	26 weeks ended 27 December 2025 £'000	26 weeks ended 28 December 2024 £'000	52 weeks ended 28 June 2025 £'000
Opening cash and overdraft	298	4,445	4,445
Closing cash and overdraft	(44)	90	298
Movement in cash in the period	(342)	(4,355)	(4,147)
Cash from increase in bank loans	(500)	-	(1,000)
Cash used to repay bank loans	-	-	1,600
Movement in net debt resulting from cash flows	(842)	(4,355)	(3,547)
Movement in loan issue costs	(102)	(103)	(204)
Net debt at beginning of the period	(83,734)	(79,983)	(79,983)
Net debt	(84,678)	(84,441)	(83,734)
Current lease liability	(3,215)	(3,210)	(3,392)
Non-current lease liability	(47,240)	(48,180)	(47,951)
Statutory net debt	(135,133)	(135,831)	(135,077)

 

 

c Analysis of net debt

Group and Company	June 2025 £'000	Cash flow £'000	Cash from increase in borrowings £'000	Non-cash £'000	December 2025 £'000
Cash and cash equivalents	298	(342)	-	-	(44)
Debt due in less than one year	(1,600)	-	-	-	(1,600)
Debt due after more than one year	(82,432)	-	(500)	(102)	(83,034)
Net debt	(83,734)	(342)	(500)	(102)	(84,678)
Lease liabilities	(51,343)	2,232	-	(1,344)	(50,455)
Statutory net debt	(135,077)	1,890	(500)	(1,446)	(135,133)

 

Non-cash movements in lease liabilities comprises lease additions, disposals, and modifications totaling an increase to lease liabilities of £727,000 (2024: increase of £1,482,000) and interest of £617,000 (2024: £587,000).

11 Capital commitments

Contracts for capital expenditure not provided for in the accounts amounted to £683,000 (2024: £1,732,000).

12 Related party transactions

George Barnes is a Non-Executive Director of Shepherd Neame Limited. Mr A J A Barnes, a close member of George Barnes's family, is a partner at Barnes Solicitors LLP. During the 26-week period to 27 December 2025, Barnes Solicitors LLP provided legal services at a cost of £30,000, including VAT and disbursements to third parties (2024: £13,000). A balance of £1,000 was owed to Barnes Solicitors LLP by Shepherd Neame Limited at the end of the reporting period (2024: £7,000).

 

Nigel Bunting, an Executive Director of Shepherd Neame Limited, is also a Director of Davy & Company Limited. During the 26-week period, the Group made gross sales to the value of £179,000 (2024: £184,000) to Davy & Company Limited and its associated companies, exclusive of VAT; additionally, no retrospective discounts were issued in respect of sales made in prior periods (2024: £36,000). At the end of the period, a balance of £48,000 was owed to the Group by the Davy Group of companies (2024: £nil).

 

Hilary Riva, a Non-Executive Director of Shepherd Neame Limited in the financial year ended 28 June 2025 (resigned 31 March 2025), was also a Director of the Alexander Centre CIC. During the comparative 26-week period ended 28 December 2024 whilst the directorship was active and the Alexander Centre CIC was a related party, the Group made sales to the value of £8,000 exclusive of VAT to the Alexander Centre CIC, and purchased services to the value of £1,000 inclusive of VAT from the Alexander Centre CIC. As at 28 December 2024, no balance was owed to the Group by the Alexander Centre CIC and no balance was owed by the Group to the Alexander Centre CIC.

 

All the transactions referred to above were made in the ordinary course of business on an arm's-length basis and outstanding balances were not overdue. There is no overall controlling party of Shepherd Neame Limited.

 

13 POST BALANCE SHEET EVENTS

On 13 March 2026, the Company refinanced two debt instruments with joint lenders Lloyds Bank plc and HSBC Bank plc, a £14.5m Term Loan and a £40.0m Revolving Credit Facility (of which £14.0m was utilised as at 27 December 2025).

 

The Term Loan was repaid and cancelled in full, in conjunction with the provision of a new £15.0m Term Loan repayable in full on 13 March 2029. The Revolving Credit Facility was reduced to £30.0m. This facility is also repayable in full on the same date as the Term Loan. Both facilities bear interest at SONIA plus a margin determined by the Company's adjusted leverage ratio.

 

The debt facilities held by the Company remained unchanged as at 27 December 2025.