Adnams' bosses accept pay freeze in 2009

With trading conditions unlikely to see an imminent improvement in 2009 directors at Adnams, the Suffolk brewer and pub operator, have agreed to see their pay frozen until the end of the financial year.

Announcing its result for 2008 today, Adnams said severe market conditions, softening consumer confidence and regulatory changes to the pub and brewing sectors had all taken their toll on the business.

Consequently all the company's staff would see their pay frozen. The brewer's senior management would not get a pay increase in 2009. Chairman Jonathan Adnams was paid a basic salary of £177,000 in 2008, rising to £191,000 after benefits. Andy Wood, Adnams' managing director, was paid £167,000 in 2008, rising to £181,000 after benefits.

The Southwold-based brewer said while turnover for the year to December 31, 2008, had dipped less than one per cent to £47.1m, rising costs meant operating profits fell 68 per cent to £1.5m.

Adnams' pre-tax profits fell from £7.5m to £1.3m. An unchanged final dividend of 122p per share will be paid, the group said, bringing the total for the year to 186p.

The brewer said 2008 had started in line with its expectations, but that conditions across its business - pubs, hotels and kitchenware retail outlets - had worsened after March last year.

Adnams' beer sales fell six per cent in 2008, versus nine per cent for the overall UK beer market.

The brewer said it had held margins into the off-trade, particularly with sales to supermarkets, but this had had the effect of its rate of sales dropping compared with 2007.

Six pubs were sold in the autumn, Adnams said, and it continued to support its tenants in the tough market.

While its hotels business was also under pressure from the economy, Adnams hoped the strength of the euro would persuade many Britons to holiday at home, with the group reaping the benefits through increased bookings.