SHEPHERD Neame’s long-standing chairman Robert Neame steps down later this month after reporting fizzing profits for the 30th year in a row.

The brewing company, based in Faversham, weathered tough economic conditions in 2004-5 to maintain its record.

Mr Neame has been chairman throughout those 30 years of consistent profits growth. He will be replaced by Miles Templeman, who is also director-general of the Institute of Directors, at the annual meeting on October 28.

If shareholders agree, Mr Neame will stay on as a non-executive director until June 30 next year.

Commenting on his final annual figures as chairman, Mr Neame, 71, said the brewing industry faced continuing change and consolidation.

Four regional brewers had disappeared in the past year alone. But consolication created new opportunities for independents such as Shepherd Neame with strong brands.

However, there were other challenges. Mr Neame said: “The trade continues to suffer from declines in volumes as well as considerable increases in costs such as minimum wage, licensing reform, rates and utilities, many of which are driven by government. There is also an increasing pressure on consumer expenditure.

“Our policy of investing in our existing estate and purchasing quality pubs, combined with a speciality beer portfolio and efficient modern production and distribution facilities is the best response to this challenging market.”

Shepherd Neame pulled off a six per cent leap in pre-tax profits to £9.9m in the 52 weeks ending June 25.

* Operating profit went up 15 per cent to £12.1m (2004: £10.5m).

* Turnover edged up 1.1 per cent to £91.4m (2004: £90.3m).

* Earnings per £1 share leapt 9.6 per cent to 58.1p (2004: 53.0p), while the dividend was up 5.7 per cent to 18.6p.

The company also reported a strong performance in its pub business.

Sales of Spitfire Ale continued to rise, and the brewer landed a new contract to brew the Japanese beer Asahi Super Dry under licence.

Sheps announced that it had arranged a £37.5m debt refinancing deal.

“The results reflect a solid performance in a difficult market with strong growth in profit before tax and earnings per share,” said Mr Neame.

“I have enjoyed the challenge of being chairman for the past 35 years and am confident of seeing the continued growth and development of Shepherd Neame under the new chairmanship of Miles Templeman.”

Sheps sold 67.4m pints last year, mainly in the UK but some through overseas outlets in 15 countries, including France, Sweden and Denmark.

The company operates 369 pubs - 322 tenanted and 47 managed - in the south east. Its beers include Spitfire, Bishops Finger, Masterbrew, Hurlimann, Holsten Export, Oranjeboom, Kingfisher, Ashai Super Dry.