Brewer and pub group Shepherd Neame has reported record high sales as it said inflation was “at last” beginning to ease for under-pressure firms.
The company, which is more than 300 years old and says it is Britain’s oldest brewer, said demand had been particularly strong in London with city centre workers returning to offices.
Revenues for the six months to December reached a record high of £89 million, about 4% more than the same period a year ago.
Christmas trading was “exceptional”, said chief executive Jonathan Neame, “as consumers celebrated their first uninterrupted Christmas since 2019”, prior to the Covid-19 pandemic.
It was affected by just six days of rail strikes during the period, compared with a longer period of disruption in the prior year.
“Whilst the cost-of-living crisis is still squeezing consumer pockets, hospitality has fared better than high street retail,” Mr Neame said.
He said pubs have generally been performing better than casual dining, amid restaurant groups feeling the impact of consumers making cut-backs to their spending.
Prices of food, raw materials and energy are still around 10% higher than the previous year, but have been beginning to stabilise, the company said.
Mr Neame added: “Whilst we do face new inflationary challenges, such as the further rise to the National Living Wage which takes effect from April 1 2024, hospitality businesses are potential beneficiaries of the additional discretionary spend this will put in consumers’ pockets.”
The UK minimum wage is set to rise to £11.44 from April, from the current rate of £10.42, and apply to 21 and 22-year-olds for the first time.
Meanwhile, Shepherd Neame’s statutory pre-tax profit fell to £1.1 million from £5.5 million the previous year.
On an underlying basis, which strips out one-off costs, profits grew by a 10th to £3.8 million year on year.
The group operates 296 pubs and brews beers under a range of brands including Spitfire, Bishops Finger and Whitstable Bay.