Kent's 300-year-old brewer has bucked the downturn to reveal fizzing profits and sales.

But Shepherd Neame, based in Faversham, warned that the economic and trading environment remained difficult.

Sheps announced that turnover rose by 5.4 per cent to £115.4m in the year to June 26. Pre-tax profis rose 25.5 per cent to £8.7m (2009 - £6.9m).

Total beer volume sales went up by 4.8 per cent. Like-for-like retail sales edged up 0.7 per cent with like-for-like food sales up 3.9 per cent. Average income per tenanted pub rose by 1.3 per cent. The company said it was benefiting from its multi-million pound investments in new pubs, bottling line and new computer systems.

Company chairman Miles Templeman said: "This has been a successful year for Shepherd Neame. We have achieved record turnover, record beer volume and strong net cash inflow against a background of a weak UK economy and challenges facing our industry. The business is highly cash generative, has robust long-term financing in place and has ample facilities to take advantage of future market opportunities."

But he added that imminent tax increases, public sector job losses and weak house prices would have a cumulative impact on consumer confidence.

Sheps operates 365 pubs across Kent and the South East, of which 320 are tenanted or leased, and 45 managed.