Shepherd Neame saw its profits and turnover rise over the last year as it revealed its annual financial figures.

Jonathan Neame, chief executive of Faversham-based Shepherd Neame, said the company had made "good progress" over the course of the year as it continues to invest in sites to help deliver bottom line growth.

Its finance figures for the year ended June 30, 2018, revealed turnover increased by 0.2% to £156.6million while underlying profit before tax rose by 5.4% to £11.8m, compared to £11.2m the year before.

The company, Britain's oldest brewer, operates 321 pubs across Kent and the south east.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 5.5% to £24.6m.

Over the course of the year it has invested £10.2m in upgrading its portfolio of pubs and acquired two central London pubs - including another in recent weeks.

Over the last five years 22 pubs have been acquired and 51 sold as it seeks to change the profile of its portfolio.

Jonathan Neame said: “Shepherd Neame is a strong business with an enviable track record of delivering consistent growth and this year is no exception.

"We have made further good progress against our strategic objectives and some great individual investments in our pubs. We have also successfully re-positioned our beer business away from contracts to focus on our own beer and cider brands.

"A key strength of the company is the balance between the different financial and market characteristics of each division which gives resilience even in more challenging market conditions.

"We have made some great acquisitions, during the year and since the year end, which further strengthens our managed estate and positions us well for the anticipated economic growth in our heartland over the next 15 years.

"We have started the new year well as we have benefited from the warm summer weather, in particular in our coastal sites

"The coming year has more political and economic uncertainty than most of us can remember. But, whatever the short-term impact, we believe that we are well positioned to take advantage of opportunities that arise in our local region and in the wider industry. “

Its estate of 68 managed pubs saw turnover grew by 7.7% to £65.3m (up from £60.7m) with like-for-like sales growth of 1.3%,.

But underlying operating profit from those sites was impacted by cost pressures and was down at £8.7m, from £9m in 2017.

Its 242 tenanted pubs had a strong year with like-for-like EBITDAR (before interest, tax, depreciation, amortisation and rent payable) up 2.1%.

Its brewing and brands division saw turnover drop 8.9% to £54.4m as a result of its contract to brew Japanese beer Asahi coming to an end.

But underlying operating profit in the division grew by 46.9% to £2.3m from £1.6m in 2017.

Chairman Miles Templeman said: "The business has continued to absorb significant cost inflation from business rates and the National Living Wage and although revenue and margins have been under pressure in our managed pubs, our high quality tenanted pubs have performed well and the brewing and brands division has delivered a very satisfactory performance.

"Our aim is to build an estate of well invested pubs and to create a portfolio of great beer brands.

"A key factor in our thinking is the anticipated economic growth within our Kent heartland over the next 15 years. There is major house building planned in all major conurbations, with substantial development in and around Ashford and Ebbsfleet.

"The population of Kent is forecast to grow by more than 20% by 2031. We aim to build the business to take advantage of these trends by ensuring we own and operate the best pubs in the key locations and develop them to their full potential for food, drinks and accommodation."