12th February 2024
I am writing to you in response to media reports in the past 48 hours regarding Adnams.
As you will know from previous company announcements, like many operators in the hospitality and brewing sectors, we have seen significant inflationary pressure on our labour, energy, raw materials and borrowing costs. Alongside this, we’ve seen generally weaker overall consumer demand, as households deal with the same financial pressures.
As we reported in our 2023 interim results in September, while sales remained steady in the six months to 30th June, losses after tax increased to £2.4m.
As a result, we’ve continued to place emphasis on managing our costs and cashflow carefully through various initiatives, whilst focusing on a number of growth opportunities across our business and markets.
We will update on our full year 2023 results in May.
We are encouraged by improved trading conditions at the start of 2024 and are confident the steps we’re taking will drive greater sales growth and restore stronger profitability in the longer-term.
In the meantime, we’re exploring ways to reduce our bank debt to reduce interest payments and further strengthen our balance sheet to support our future growth and provide additional resilience. This could include a fresh injection of capital into the business from another party, or the sale of some of our freehold assets to return capital to the business.
No decision has been taken on the route forward and we will continue to keep you updated on these developments at the right time.
We’re incredibly fortunate to have a brand and a business that is championed and cherished by many people.
Adnams remains committed to the same values and principles that have guided us for over 150 years - to quality, innovation and sustainability, while serving our customers and supporting our people and communities, and ever cognizant of the needs of our loyal shareholders.
Thank you all for your continued support.
Yours sincerely,
Jonathan Adnams
Chair