by business editor Trevor Sturgess

Kent brewer Shepherd Neame is selling up to 35 under-performing pubs after reporting a profits dip in “one of the most challenging years in the firm’s history.”

The 300-year-old family-owned firm said most of its quality pubs were doing well but sales decline in the bottom 10 per cent had affected overall performance. It would therefore be disposing of up to 35 pubs in the next two to three years.

Shepherd Neame, based in Faversham, bought 15 quality, high turnover pubs during the year, installed a new bottling line and completed its new computerised system.

It blamed a 20 per cent fall in pre-tax profits to £6,9m (2008: £8.7m) on higher overheads, one-off spending and the rising cost of raw materials. Turnover grew by 7.6 per cent to £109.5m (2008: £101.7m).

Shepherd Neame chairman Miles Templeman said it had been one of the most challenging and difficult years in the company’s history.

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