KENT-based brewer Shepherd Neame has smashed through the £100 million sales barrier to pull off profits growth for the 32nd year in a row.

The 300-year old Faversham business defied a national downturn in beer drinking to boost pre-tax profits - before exceptional items - by 10 per cent to £10.5m.

Turnover for the year to June 30 went up nearly five per cent to £100m. Like for like pub sales also went up.

Sheps also enjoyed growth in brands such as Spitfire, Bishop’s Finger and its Japanese Asahi Super Dry lager brewed under licence.

Chairman Miles Templeman reported that sales this summer were satisfactory despite poor weather, the smoking ban and higher interest rates that had put pressure on consumers.

While the full impact of the smoking ban would not become apparent for several months, early reaction from customers had been encouraging, he said.

He stressed that the company had achieved excellent growth against a background of challenging market conditions.

"Our business strategy remains to build our brands, invest to improve our pub estate, remain focused on our strengths and to improve the overall efficiency of our operations," he said.

"Although we face continuing external regulatory pressure concerning alcohol, environmental and social responsibility, I have great confidence in our ability to grow in the future."

The company incurred exceptional costs before tax of £2m, mostly relating to the installation of new computer software. It bought 12 freehold pubs for £16.4m and sold seven for £5.6m.

Basic earnings per share were up 14.3 per cent to 73.4p, with earnings per share before exceptional items up 17.9 per cent to 60.5p.