Adnams halts shareholder revolt

Adnams, the Suffolk brewer, has quashed a shareholder revolt.

An unnamed shareholder had pushed for the second time for the rights associated with the brewer's 'A' shares to be altered, but following a consultation exercise with investors - representing more than half the group's equity - Adnams said it had concluded there was "minimal support" for any changes.

The changes being proposed by the rebel shareholder were also tabled last year, the group said.

News of the revolt came as Adnams reported turnover for the year to December 31, 2007 up 2.8 per cent at £47.4m.

The group said its operating profits rose 2.6 per cent to £4.2m in the year.

Property sales boosted pre-tax profits to £7.5m, although once these were stripped out, underlying pre-tax profitability rose two per cent to £3.5m.

Executive chairman Jonathan Adnams said that against "a challenging backdrop, Adnams' volumes have held firm, significantly outperforming the market".

He added that "consistent investment in the brand and business infrastructure has made for a more robust and adaptable business and provides a good foundation for growth".

Adnams said the roll-out of the group's 'Cellar & Kitchen' concept would see the first London store opening in Richmond in a fortnight's time, and four more shops were due to open this year. The group remained on course to have 30 stores open by 2012, Adnams said.

The group's 80-strong tenanted pub estate was "pretty solid", although growing the number of pubs was not part of its ongoing strategy. Nine Adnams pubs remain on the market and a deal was "ongoing", he added.

"We haven't bought a pub in five years," Adnams said. "Ninety four per cent of the beer we produce is not sold through our pubs, but our estate is still fundamental to the Adnams 'DNA'."

He added that Adnams would be launching a new beer product which would have "minimal environmental impact", although details would not be disclosed until around the time of the AGM early next month.