Prices set to rise at Sheps as inflation bites

Despite “one crisis rolling into the next”, brewer and pub operator Shepherd Neame has reported an upturn in profits in its latest set of financial figures - but warned its bar prices are likely to rise. The Faversham-based firm’s figures for the second half of 2022 reveal an up-tick in profits, revenues and dividend payments for shareholders.

But it warns inflationary pressures are hitting the hospitality sector hard - and at a far higher rate than the national figure of 10.4%.

The firm’s chief executive, Jonathan

Neame, said: “I think prices will continue to go up - that’s inevitable. But that will only happen exactly when we know what costs we have to cover. So we haven’t moved our food prices up yet, yet the price of food inflation has been running at 25% as people will know in their supermarket basket.

“We will do our level best to keep good value for money and try and keep the pub experience affordable for people, but there is still a significant amount of inflation.”

Revenues at the firm, which runs around 300 pubs across Kent and the South East, were £85.3m for the period - up 8.4% from the first half of 2022. Underlying profit before tax for the six months was £3.5m - an increase of 15.5% on the first half year figures. Mr Neame added: “Our sector is experiencing inflation significantly more than the headline national inflation. That’s the real challenge. In terms of momentum against last year, this is encouraging. But it is still some way, in profit terms off where we were prepandemic.”