by business editor Trevor Sturgess

Good weather has boosted Shepherd Neame beer sales.

The 300-year old Faversham brewer and pub owner saw own beer volumes grow by 3.6 per cent in the 48 weeks to May 28. It said trading had remained strong and benefited from the better weather.

Like-for-like sales in managed houses went up by 7.7 per cent and average income per tenanted pub edged up 0.6 per cent.

Sheps also reported strong cash generation which enabled the company to repay and cancel a further £1.25m of a £15m five year loan.

A total of £5m has been repaid and cancelled during the financial year.

In the last six months of 2010, Shepherd Neame sold 41 million pints. The majority of these sales were in the UK although the company exports to more than 20 countries, including France, Sweden and Denmark.

The company's full year accounts for 52 weeks ending June 26 in October.

It remained cautious about the general state of the economy but expected to announce performance "in line with market expectations".

Meanwhile, the company has revalued its 360-strong pub estate across the South East, mostly in Kent.

The exercise found the estate had a surplus over book value of £68m. Following an impairment review, Sheps faces an exceptional charge of £1.9m arising on 13 pubs.