Britain’s oldest brewer Shepherd Neame reports loss and predicts many city centre pubs ‘may close for good’

Britain’s oldest brewer Shepherd Neame predicted many city centre pubs “may close for good” as it reported a pre-tax loss on Wednesday.

The brewer, which owns and operates 319 pubs across London and the South East, posted a loss of £2.9 million for the year ending June 27, down from an £11.4 million profit last year.  Meanwhile turnover for the year decreased to £123.6 million, from £145.8 million.

But the company was upbeat, saying it will focus on its “core base” of community and suburban pubs.

It said: “The hospitality market will evolve rapidly as a result of Covid-19. It is likely that secondary or city centre outlets may close for good. In that context, many of our pubs may benefit, particularly suburban and community pubs which is the core base of our estate.”

Chief executive, Jonathan Neame, told the Standard: “It’s very difficult to see the sort of footfall levels that existed pre-lockdown coming back to the City and West End until God knows when — 2022? Beyond?”

Neame also warned that the new lockdown means the sector faces a “tough winter”.  

He added: “We hope that we can reopen the vast majority of our pubs back into Tier 1, as we are largely rural.”