Shepherd Neame reports a ‘positive and encouraging’ year with record revenue, current tenanted pub lfl income up 3.1% versus rest of 2024: South east brewer and retailer Shepherd Neame has reported a “positive and encouraging” year to 29 June 2024 with record revenue and said current tenanted pub like-for-like income is up 3.1% versus the rest of 2024. The company, which operates 291 pubs in the region, said progress in all three of its divisions had led to record revenues and a good uplift in profit. Revenue for the year grew by 3.6% to a record £172.3m (2023: £166.3m) while profit before tax grew by 38.1% to £6.8m (2023: £4.9m). Underlying profit before tax grew by 4.4% to £7.9m (2023: £7.6m) while underlying Ebitda grew by 6.4% to £25.1m (2023: £23.6m). Capex of £14.6m was spent (2023: £17.2m), which was primarily inward investment, while basic earnings per share was 33.0p (2023: 23.5p) and underlying basic earnings per share 37.8p (2023: 41.1p). Net asset value per share increased to £12.17 (2023: £12.05) and a full year dividend of 20.70p per share was paid (2023: 20.00p), an increase of 3.5%. Tenanted trade continued to perform well, with tenanted like-for-like pub income up 4.6% versus 2023 and average pub income up 4.3%. Divisional revenue in tenanted pubs on a 53-week basis was up 5.1% to £35.6m (2023: £33.9m) and divisional underlying operating profit was £12.8m (2023: £12.6m). Retail showed continued growth, with a particularly strong performance within the M25. Total retail like-for-like sales were up 4.9%, with drink sales up 7.2%, food sales up 2.4% and accomodation sales down 1.8% Retail like-for-like sales inside the M25 were up 14.5% (2023: up 30.6%) and outside the M25 up 1.1% (2023: up 6.6%). Like-for-like occupancy was 71.3% (2023: 76.1%) and like-for-like revpar £83 (2023: £85). Divisional revenue in the retail estate on a 53-week basis was £82.9m (2023: £74.4m), up 11.4%, while divisional underlying operating profit was £9.3m (2023: £8.3m). Beer profits were up but volume down as the business said it pivots from the off-trade to drive growth in the higher margin on-trade. Total beer volume was down 11.8% versus 2023 while own brewed volume was down 17.2%. Divisional revenue in brewing and brands on a 53-week basis was £52.7m (2023: £56.9m), down 7.4%, but divisional underlying operating profit improved to £1.6m (2023: £1.0m). The company said performance in the independent on-trade has been strong, with many high-profile new accounts won. Post year-end, in the nine weeks to 31 August 2024, tenanted like-for-like pub income was up 3.1% versus the rest of 2024. In the 13 weeks to 28 September 2024, like-for-like retail sales were up 3.8% on the rest of 2024, while total beer volumes were down 11.5% and own beer volumes down 12.8%. “We have seen further good progress in all three divisions,” said chief executive Jonathan Neame. “We have great beers and pubs, a strong balance sheet and a well-balanced and cash-generative business. We have a strong pipeline of pub developments and new opportunities in our heartland on-trade. We are optimistic about the consumer outlook and are well positioned for the future, notwithstanding the ongoing cost headwinds we face.”

New venues added to Propel’s study tour of Naples: New venues have been added to Propel’s study tour of Naples. The tour to Naples – the birthplace of pizza and named among the world's best cities for food in 2024 by Time Out – takes place from 9-11 November and is open for bookings. Highlights will include visits to the best pizzerias on the planet, incredible bakeries, an ancient street market, amazing trattorias and some very atmospheric restaurants that deliver a very Neapolitan experience. Among the new venues added to the itinerary is L’Antiquario, one of the world’s top 50 bars, and also Scotto Jonno, which is situated in the Galleria Principe. There will also be a visit to Sorbillo, whose founder Gino Sorbillo has been considered by many to be the best pizza maker in the world and is one of the most awarded and recognised eateries in all of Italy. One of the dinners will be held at what may be one of the most recognisable restaurants in Naples, Trattoria da Nennella. Dating to 1950, the Neapolitan institution features folklore music, waiters dancing and singing, traditional cuisine, and the smashing of dinner plates. There will also be a visit to Pasticceria Poppella,which creates the famous snowflake pastries and the city’s most sensational desserts. A limoncello and amaretto masterclass will also be held by the founder of Adriatico & Mama Mia. The cost is £2,250 for single occupancy and £1,950 for twin occupancy. The price includes flights, two nights’ accommodation, two hosted dinners, welcome drinks reception and a full tour of the city's best hospitality operations. To book, contact Myles Doran: myles@hospitality-inc.co.uk or 07710 783485.

Scoffs takes out £4m loan to fund growth plans and actively seeks acquisitions, losses grow by more than £3m: Scoffs Group – the largest Costa Coffee franchisee in the UK with 113 stores – has taken out a £4m loan to fund its growth plans and is actively seeking acquisitions. The business, which earlier this year opened its first franchise site with healthy fast food brand Itsu, said in its accounts for the year to 31 December 2023: “During 2024, the group completed a re-banking exercise involving a migration of the term loan and a creation of a £4,000,000 capital facility ready to be deployed on growth opportunities into 2024 and beyond. The group has already deployed some of this capital into the opening of new stores in 2024 and is actively seeking opportunities to grow via acquisition.” The group said during the period, it operated 110 Costa stores, down from 111 in the previous year, and also operated a Miss Millies store. Propel revealed in October 2023 that Scoffs had discontinued its Miss Millies operation and passed the site to another franchisee for the brand following a strategic review. The group made a £20,272 loss on the sale of its Miss Millies operation, the accounts reveal. In all, the group’s pre-tax loss widened from £636,512 in 2022 to £3,820,725 as costs rose by almost £5m and admin expenses rose by more than £4m. Turnover was up from £46,651,943 in 2022 to £53,790,066. Government grants of £126,607 were received compared to £593,616 in 2022. Dividends of £136,583 were paid (2022: £149,750). “The group continues to build on the acquisition of the 20 Costa company owned stores in 2022 through improved support platforms, leveraging technological development and integration into day-to-day operations,” said director Anthony Tagliamonti. “This, coupled with the continued investment into its people, building a strong support centre including a new finance director, has readied the group for ongoing growth into 2024 and beyond. The group has set up a sub-group to facilitate the acquisition and operation of the Itsu franchise, with the first site opening in Q1 of 2024 within Exeter. The group has opened two Costa outlets within 2024, with a further new site planned for Q4. The business has also conducted a detailed review of its core trading estate and identified a cohort of sites that do not meet the required levels of performance and has been actively seeking to exit these sites during 2024. This focus will continue to protect the group underlying performance and ensure any financial losses from these sites is mitigated for the group. The year to 31st December 2023 continued to present financial challenges for the group as subdued consumer confidence, coupled with cost inflation, reduced our overall levels of profitability. We continue to work closely with our partners to improve profitability and customer footfall. Turnover rose 15% as the group traded it's Cornwall stores for a full year and the country fully recovered from trade disruption relating to the covid pandemic. Both operating profit and Ebitda reduced significantly in the year as expected, following the cessation of various government assistance and local authority concessions, and due to the significant inflationary cost pressures in the UK particularly in relation to supply chain costs and the cost of staff.” Scoffs Group features in the UK Food and Beverage Franchisee Database, which is sent exclusively to Premium Club subscribers and currently features 160 businesses. The database, which is sent bi-monthly, is the first time that profiles of the top food and beverage franchisees have been available in one place in the UK. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

Edinburgh’s attempts to regulate short-term lets leading to ‘burgeoning black market of unlicensed accommodation’: Edinburgh’s attempts to regulate short-term lets has led to a “burgeoning black market of unlicensed accommodation”, it has been claimed. This month marks one year since the Scottish capital introduced measures to curb short-term holiday lets. Fast-forward to today and the number of Airbnb-type properties has reportedly been slashed while unlicensed lettings have flooded social media and prices have soared, reports The Telegraph. Fiona Campbell, chief executive of the Association of Scotland’s Self-Caterers (ASSC), said: “As professional self-catering businesses have been shut down or at threat of closure, there’s a burgeoning black market of unlicensed accommodation in the capital, thereby undermining the entire purpose of the regulations. Unless the harmful impact of the regulations is fully ameliorated, the situation is likely to be even worse next year.” While the Edinburgh crackdown predominantly affects self-catering businesses, David Weston of the Scottish Bed & Breakfast Association (SBBA) also claims the policy has affected his members directly. “It is an unnecessarily onerous burden on very small businesses and has led to a loss of some 5% of our Scottish membership last year, as B&B owners chose to close or sell up rather than apply for a licence,” he said. “We and many others urged the Scottish government to go for a simple, low-cost, national registration scheme, but they ignored us.” Edinburgh Council leader Cammy Day responded: “One year on and the early signs are promising that the regulations are helping to keep visitor accommodation safe and well managed in Edinburgh. We’re committed to ensuring that everyone benefits from Edinburgh’s thriving visitor economy, but it has to be managed, and it has to be sustainable – and I strongly believe that our short-term let controls have been an important step in the right direction.”