DJ Shepherd Neame Limited Trading Update: Acquisitions
RNS Number : 9199A
Shepherd Neame Limited
10 June 2016
Issued by Shepherd Neame
TRADING UPDATE; ACQUISITIONS
Shepherd Neame, the Kent-based brewer, pub and hotel operator, today updates the market on trading for the 49 weeks to 4th June 2016.
Like-for-like sales in managed houses were up + 4.6% and like-for-like EBITDAR(1) in the tenanted estate for the 48 weeks to 28th May up +2.4%. Own beer volumes excluding contract were down -0.7%. The results for the year ending 25(th) June 2016 are anticipated to be in line with market expectations.
Acquisition of eight pubs from Enterprise Inns
The company also announces that it has exchanged contracts for the purchase of eight freehold pubs in Kent, Sussex and Surrey from Enterprise Inns that are operated under lease. Representatives from the company will be meeting with the licensees over the next few days to discuss transitional arrangements and future investment plans.
These assets are all high quality pubs in line with our strategy to acquire sites with unique character in landmark or high profile locations, to invest in them to drive footfall and to develop the offer to enhance the customer experience.
Growth of managed estate
In a separate transaction, the company has reached an agreement for five of its pubs, in Canterbury and Faversham, currently operated under tenancy by the successful company UES Ltd, owned and managed by Dan Sidders and Gareth Finney, to transfer to its managed estate. Dan and Gareth will join the managed head office team to develop these and other pubs further.
Both these transactions are expected to complete within four weeks, and taken together, the company will invest GBP13.4m. Upon completion the total number of pubs will be 336, of which 59 will be operated under management and 270 as tenanted and leased and seven under commercial free of tie leases.
Chief Executive, Jonathan Neame said: "We are delighted to end another successful year with these excellent opportunities to enhance the quality and profile of our pub estate and to bring new skills in to the team.
"We look forward to working with our new partners and see exciting investment opportunities to help build each of their businesses further.
"We also welcome Dan and Gareth to the team. We have long admired their impressive standards of service and imaginative and high quality food skills and greatly look forward to working with them in the future."
On joining Shepherd Neame, Gareth Finney said: "Dan and I have enjoyed a fantastic working relationship with Shepherd Neame as long standing tenants. We have benefited from investment, training and a broad range of support programmes to build a very successful business. We are excited to be joining the retail team."
(1) Earnings before interest, tax, depreciation, amortisation and rent payable
For further information, please contact:
Shepherd Neame Limited
Jonathan Neame, Chief Executive
Mark Rider, Finance and IT Director Tel: 01795 532206
Marc Cohen / Christina Clark Tel: 020 7074 1800
Regional and Trade Media Contact:
John Humphreys Tel: 01795 542051
Note: The Directors of Shepherd Neame Limited accept responsibility for this announcement.
NOTES FOR EDITORS
The five pubs currently operated under tenancy by UES Ltd, which are transferring to Shepherd Neame's managed estate, are: The Albion Taverna and The Limes in Faversham, Kent; The Shakespeare, The Parrot and Ye Olde Beverlie in Canterbury, Kent.
Shepherd Neame is Britain's oldest brewer. Established in 1698 and based in Faversham, Kent it employs around 1,300 people. The Company retails its own beers, on draught and in bottles, under a range of highly successful brand names, including:
--Spitfire: One of the leading premium bottled ales in the UK with national distribution on draught (4.2% abv) and in bottle (4.5% abv). Spitfire Gold, a golden ale (4.1% abv), has been launched to mark the 75(th) anniversary of the Battle of Britain.
--Whitstable Bay: This range, sold under the Faversham Steam Brewery brand, includes a Pale Ale on draught (3.9%) and in bottle (4%), an Organic Ale (4.5%), Blonde Lager (4.5%) and Black Oyster Stout (4.2%).
--Bishops Finger: Connoisseur premium ale (5.4% abv).
--Master Brew: The 'Original Kentish Ale' is a well-hopped cask ale (3.7% abv).
The Company also brews lagers under license, including:
--Asahi Super Dry: Japan's number one beer (5% abv), which is produced under an exclusive UK license for brewing, sales and marketing.
--Samuel Adams Boston Lager: Number one US craft lager (4.8% abv) brewed under an exclusive license from the Boston Beer Company. The Company also imports Rebel IPA, a strong hopped US craft beer (6.5% abv) and Angry Orchard, America's No. 1 Hard Cider (5%).
This information is provided by RNS
The company news service from the London Stock Exchange
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June 10, 2016 11:46 ET (15:46 GMT)