Beer and pub company Shepherd Neame boosted profits in the second half of last year thanks to an £8.8 million property windfall after it sold land for housing.

The Faversham-based brewer increased turnover by 0.3% to £73.7 million and managed to grow like-for-like sales in its managed pubs by 6.5% despite heavy rain in the late summer and autumn.

However, it increased pre-tax profits to £8.7 million, compared to £4.9 million a year earlier, mainly due to its sale of 10 acres of land on Brogdale Road, Faversham.

It received £7.4 million for the plot, which was sold with planning permission for 63 houses after a long-running battle to gain approval from Swale Borough Council.

The firm, which is Britain’s oldest brewer, established in 1698, also disposed of five tenanted pubs and other assets for £1.4 million.

Future property windfalls are a future possibility. The company, which employs 1,300 people, still own 44 acres of land and buildings on the edge of Faversham as a long-term investment.

A “modest benefit” from the Rugby World Cup and a strong Christmas helped underlying operating profit grow 2.9% to £7.2 million, allowing the firm to increase its interim dividend to 5.45p a share, compared to 5.3p in 2014.

The company, which produces ales including Spitfire, Master Brew and Whitstable Bay, said it enjoyed “sustained and strong trading” across its 335 pubs, of which 275 are tenanted or leased.

Like-for-like earnings before interest, taxes and other charges grew by 2.7% at tenanted pubs, although this was slower than 3.4% growth a year earlier.

Its average earnings per pub, including the 54 it manages and six held as investment properties, was up 7.2%, compared to 4% in 2014.

It sold 131,000 barrels of beer over the six months – equivalent to 37.7 million pints.

Bosses also refinanced the business, giving it access to £20 million from the bank through to September 2020 should it be needed, with the option to add another £10 million.

It also used its property profit and cash proceeds to reduce its debt to £61.4 million, down from £72.1 million in 2014.

Chief executive Jonathan Neame said: “I am pleased to report that our half year results have been characterised by a sustained and strong trading in our pub business, positive operating cash flows and significant proceeds from property disposals.

“Our consistent investment in our brand and pub assets to align them to today’s consumer demand has resulted in the sustained quality and performance of the business in a highly competitive marketplace.

“We remain cautious about the outlook for consumer spending, however I am confident we have the right strategy to succeed and the skills to deliver it.”