Adnams doubles operating profits

Adnams, the Suffolk brewer, doubled its operating profits in the year to December 31, 2009, with its Cellar & Kitchen retail concept hitting break-even point for the first time.

The brewer, which operates more than 70 pubs and hotels in East Anglia and beyond, reported turnover for the year up eight per cent to £51.3m, with operating profits more than doubling to £3.2m. A final dividend of £1.22 a share will be paid, unchanged on the previous year.

The group said its beer volumes were up four per cent, and noted that beer prices had been held for Adnams pubs and free-trade customers.

In its results announcement the brewer revealed that Andy Wood, currently Adnams' managing director, would assume the role of chief executive from May 1, 2010.

There was no mention of trading across the group's pub estate, which was boosted by the purchase of three Punch Taverns pubs last year, but Adnams said it was encouraged by the Cellar & Kitchen performance, recovering from the start-up losses of 2008 to a position of "roughly break-even in 2009", with sales up 34 per cent.

Jonathan Adnams, the brewer's executive chairman, said it was gratifying to be able to report a 2009 result "substantially ahead of what we achieved in 2008".

However with its strong environmental leanings Adnams attacked the tax regime which he said penalises those who try to do their bit for green business practices.

"The government tells us that it has been seeking to use the tax system to encourage environmental investments. However, if the Inland Revenue insists on our investment being classified as a building ineligible for tax relief, then the government's policy is being turned on its head.

"Rather than encouraging others to follow us in making environmental investments, they are encouraging cheaper buildings containing more energy intensive (and tax allowable) plant. We are nonetheless continuing to pursue our case for tax allowances on the investments that we made."

Looking ahead Adnams said: "2010 started very unhelpfully with colder weather and more snow than we have seen for some years. This has set us back a little at the start of what looks like a very uncertain year.

"There will be a general election and there is a clear expectation of tax increases. A cautious note has to be sounded, but it should be reiterated that Adnams is a company that looks to the long term. We seek to invest with that in mind and to grow over that period."