News
Adnams Brewery instructs advisors to explore funding opportunities
Based in Southwold, Suffolk, the 150-year-old brewery has appointed advisors in a bid to fund its “future growth and provide additional resilience”.
Adnams is also considering the potential sale of some of its freehold assets from its estate of more than 10 pubs and inns based across Suffolk and Norfolk.
Based on the brewer’s accounts made up to 31 December 2022, which are available on Companies House, turnover increased 11.9% year-on-year to £64.2m, but the firm experienced an operating loss of £1.2m. Meanwhile, its 2023 interim results showed that while sales remain steady, losses increased to £2.4m.
Commenting on the reports, the brewer's chair Dr Jonathan Adnams said: "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.
"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."
Adnams produces beer and cider that is sold via cask, kegs, cans and bottles. Popular varieties include Adnams Broadside and Adnams Ghost Ship.
In other news, Unilever CEO Hein Schumacher said that the firm’s “performance needs to improve” following the announcement of its full year results for 2023.
