Shepherd Neame warns on lockdown after loss

Shepherd Neame said the second phase of Covid-19 restrictions was a "great concern" as Britain's oldest brewer reported an annual loss caused by the first coronavirus lockdown.

The company swung to an underlying pretax loss of £2.9m for the year to the end of June from a profit of £11.4m as revenue dropped to £123.6m from £145.8m.

Shepherd Neame said the loss resulted from three months of shutdown for its pubs. Before the government ordered pubs to close in March, turnover was up 4.6% and underlying profit was up 6.1%, the company said.

Founded in 1698, Shepherd Neame brews Spitfire, Bishops Finger and other beers and operates more than 300 pubs in the South East of England. Its pubs outperformed the wider market when premises were allowed to reopen in July but they will be forced to close for four weeks from Thursday.

Chairman Miles Templeman said: "The company has experienced many challenges over its history, but perhaps none as severe and instant as this crisis. We have traded as well as could be expected since re-opening in the summer, but the rest of the winter presents further risks and fresh uncertainties. The new restrictions are of great concern, and we hope can be lifted in due course."

Britain's hospitality industry has warned that many businesses face ruin after the government ordered the closure of pubs, restaurants until 2 December. The government said on Tuesday that pubs would be allowed to sell takeaway beer during lockdown after warnings that more than 7m pints would have to be poured away.

Foreign Secretary Dominic Raab promised on Wednesday that England would go back to tiered restrictions on 2 December as planned. Other ministers, including Chancellor Rishi Sunak, had been more cautious, saying the blanket lockdown would be reviewed.