5th Sep 2025 10:39
(Alliance News) - Adnams PLC on Friday reported "good progress" in its turnaround strategy, suggesting that it has performed slightly ahead of the market during a "challenging" first half.
The Southwold, Suffolk-based brewer, hotelier and wine seller posted a 5.7% drop in revenue to GBP0.1 million in the six months that ended June 30, from GBP31.9 million the previous year.
Adnams attributed this to a downward trend in both the on- and off-trade markets of the pub sector, and noted a GBP1.2 million exceptional cost resulting from regulations which require producers to cover recycling costs.
Still, the company said that on-trade business was "stable against a very challenging backdrop where many free-trade pubs are struggling to stay in business."
On-trade sales grew by 3.3% in June partly due to favourable weather, compared to an 8.5% market decline, as cited by Adnams. Off-trade sales to supermarkets were 2% ahead of the market, the company added.
Pretax loss in the first half narrowed to GBP1.5 million from GBP2.6 million, while net debt reduced to GBP11.7 million at June 30, from GBP18.2 million on-year, through the disposal of non-trading assets and "a small number" of trading sites.
"Wherever circumstances permitted, long-term trading arrangements were made with the acquirers of trading sites, so our products remain on the bar," the brewer noted.
Adnams plans a further debt reduction to roughly GBP8 million by the end of September, with its asset disposal plan "very close to completion".
At the end of June, the company's trading pub estate included 28 locations, 9 of which are directly operated by the Managed Properties branch and 19 of which are run by tenants.
Going forward, Adnams plans to focus on its Ghost Ship low-alcohol/alcohol-free offering and Destination Southwold, where it operates a hotel and distillery tours.
"We have much work to do as we implement our sales and marketing plans to enable the business to grow again into areas of opportunity," commented interim Chair Simon Townsend.
"With the benefit of a stable balance sheet and substantially lower debt, and by driving a much greater degree of commerciality across the business, we can look to the future with confidence," he added.
Adnams shares traded down 27% at 1,650.00 pence on Thursday on the Aquis Exchange.
By Holly Munks, Alliance News reporter
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