Despite "one crisis rolling into the next", brewer and pub operator Shepherd Neame has reported an upturn in profits in its latest set of financial figures - but warned its bar prices are likely to rise.

Released today, the Faversham-based firm's figures for the second half of 2022 reveal an up-tick in profits, revenues and dividend payments for shareholders.

But it warns inflationary pressures are hitting the hospitality sector hard - and at a far higher rate than the national figure.

Hope inflation would continue to decline were dealt a blow earlier today when it was announced the figure rose in February to 10.4% compared to 10.1% the previous month.

The firm's chief executive, Jonathan Neame, said: "I think prices will continue to go up - that's inevitable. But that will only happen exactly when we know what costs we have to cover. So we haven't moved our food prices up yet, yet the price of food inflation has been running at 25% as people will know in their supermarket basket.

"We will do our level best to keep good value for money and try and keep the pub experience affordable for people, but there is still a significant amount of inflation."

Revenues at the firm, which runs around 300 pubs across Kent and the South East, were £85.3m for the period - up 8.4% from the first half of 2022.

Underlying profit before tax for the six months was £3.5m - an increase of 15.5% on the first half year figures.

Mr Neame added: "Our sector is experiencing inflation significantly more than the headline national inflation. That's the real challenge.

"In terms of momentum against last year, this is very encouraging. But it is still some way, in profit terms, of where we were pre-pandemic.

"That's the benchmark we have to get back to."

Its figures were swollen by the long hot summer last year, its first year of uninterrupted Christmas trading since the pandemic and a return to offices in London - boosting sales in its city venues.

However, it noted that the number of office parties over the festive season were down - a sign of firms tightening their belts due to the economic uncertainty.

He concluded that the firm was now emerging from the combined impacts of the pandemic, soaring inflation and the resulting cost-of-living crisis. He explained: "We''re coming out the other side but I'd like it to be quicker.

"I think we'd have hoped it would have been a shorter crisis and we'd have bounced back fully by now. I think the expectation is it will now be 2024/25 before we can hope to recover to where we were.

"It's been quite gritty throughout, but we are making progress. We are making a stronger business for the future and we do still have a very strong business.

"I don't think I'm any less confident that Shepherd Neame will have a great future than I did pre-pandemic."