SHEPHERD Neame, the 300-year-old brewer and pub operator, has defied a consumer spending slowdown with sparkling half-year profits.

The Faversham-based firm boosted turnover by nearly three per cent to £48.9m in the six months to December 24. Pre-tax profits rose by seven per cent to £5.4m.

Strong sales of Spitfire, the heavily-promoted premium ale brand, and Asahi Super Dry, the Japanese lager beer brewed under licence since September, boosted beer volumes by 2.6 per cent.

The company reported that its 322 pubs had performed well, with strong trading in September, October and at Christmas.

Jonathan Neame, the chief executive, said it was a strong performance “against a background of subdued consumer spending and continuing pressure on costs.”

He added: “We remain confident that trading will continue to show similar progress during the second half.”

Miles Templeman, chairman, said that costs had been contained in spite of inflationary pressures. However, he remained concerned about “future cost rises driven by utility prices.”

The interim dividend, increased by 6.6 per cent, is payable on April 6.