Detailing its financial results for the year to 31 December 2020, the brewer, pub operator and retailer posted a £3.7m operating loss, versus a £719k profit for equivalent period during the year prior.
According to reports by The Morning Advertiser’s sister title MCA Insight, Adnams also revealed that sales plummeted from £74.7m in 2019, to £50.6m in 2020 as respective beer and spirit volumes fell by 23% and 31% during the same timeframe.
The brewer and operator did, however, reveal that it reduced net debt by £8.3m (46.6%).
The owner of some 70 pubs explained that while trading revenues continue to be restricted, its strong focus on cost control and investment in the various mechanisms that support cash flow – including refinancing for another three years with banking partner Barclays – have been successful in mitigating the financial impact of the pandemic.
Approach informed by ‘purpose and values’
Chairman Jonathan Adnams reflected that in order to financially safeguard its own pubs, it had been one of the first businesses to cancel rents amid the coronavirus pandemic and that he was “pleased” to see most of the industry follow suit.
“The beacons throughout this crisis have been our purpose and values,” Adnams added. “These inform our approach and our ability to use our long-term perspective to such good effect.
“The way we work with each other, our support for our customers and the communities we operate within, alongside bold and timely investments in preceding years, has meant the business has been able to weather this most challenging of years, avoid significant job losses, retain cash in the business and pay down borrowings”.
Adnams’ financial results come just days after Kent-based family brewer and pub operator, Shepherd Neame, revealed an underlying operating loss of £3.6m during the six months to 26 December 2020.