Adnams refutes Guinness Peat reform support

Adnams has claimed the majority of its shareholders are happy with its current share structure, despite claims by influential shareholder Guinness Peat Group (GPG).

GPG wrote to shareholders last week claiming that over 20% of investors were dissatisfied with the brewer and supported its calls for reform.

GPG has been highly critical of Adnams in the past and wants it to remove the imbalances of its two-tier share structure. In particular, it has also voiced opposition to the expansion of the Cellar & Kitchen estate.

In a letter to shareholders, managing director Jonathan Adnams said the GPG survey was "very opaque".

He said: "Our perception remains that an overwhelming majority are happy with the current structure.

"We would nonetheless urge you to continue to make your views known to us."

He added: "Some of you will have observed the footnote to GPG's letter stating that the new dealing arrangement for Adnams 'A' shares has not eliminated the discount relative to the price of the 'B' shares.

"There is limited trading in both the 'A' and 'B' shares, but shareholders may be interested to know that the prices of these shares have converged since the new dealing arrangement started. As we noted in our reply to GPG's letter in April, 'A' and 'B' shares are now trading at similar prices per £ of share capital."

The Suffolk brewer and operator reported a "much improved" six months of trade last week. Turnover rose 6.8% and operating profit was £922,000 compared to £142,000 in 2008. The company also saw turnover in its Cellar & Kitchen chain up 2.4%.