Brewery Shepherd Neame says it is braced for "challenging" winter months as a result of more restrictions on the hospitality industry.

The Faversham firm, which runs pubs across the South East, said the 'rule of six', the 10pm curfew and wobbling public confidence amid a second rise in Covid cases is likely to make for a difficult few months.

It has already faced a year unlike any other and warned earlier this month that job losses across its estate were "inevitable" .

Forced to close its portfolio of properties in March, the reopening in July has proved successful, but there remains the threat of additional restrictions in a bid to slow the renewed spread of the virus.

Issuing a trading update ahead of its AGM next month, bosses at the the firm said "nearly all" of its pubs have re-opened, "traded successfully and benefitted from the Eat Out to Help Out Scheme".

Its London pubs have only reopened in recent weeks.

In a statement, the firm said: "In the 13 weeks since July 4 when pubs were allowed to reopen, the business has been profitable and cash generative.

"Net debt at the year end was £84.4million with an additional £11m of tax liabilities that had been deferred in agreement with HMRC.

"As at September 26, net debt was £82.4m with the tax liabilities that had been deferred reduced to £5.7m with a further £1.2m of general deferrals.

"Liquidity is sufficient for the foreseeable future."

However, it said like-for-like sales in its 64 managed pubs and hotels for the period was down 7.9%.

It said its "coastal and destination sites" have "performed well and food and accommodation sales have been strong but our city centre and central London drinks-led outlets less so."

Its own beer and cider sales since the start of the new financial year are down 1.9%.

Shareholders are being warned due to Covid restrictions, the AGM, due to take place on November 4, will all be online only.

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