Adnams ‘continuing to explore funding options for growth’
As part of a trading update, it revealed the board’s preferred option remains the raising of additional capital from another party and/or the sale of freehold assets to return capital to the company. However, no decision has been taken yet.
Furthermore, Adnams also reported a positive first quarter trading for the three months ending 31 March 2024.
Multiple factors
It said while multiple factors continue to challenge the brewing, distilling and hospitality sectors, total sales had increased by 11% year on year in the period, supported by growing volumes in beer and spirits with a notably strong contribution from its on-trade and off-trade business.
The company went on to say falling inflation was improving demand in the on-trade and off-trade as well as softening some of the company’s cost increases.
In February, it was revealed the Suffolk brewery had called in advisers to explore a range of options to fund its future growth plans. The objective was to raise capital to pay down bank debt and fund further growth initiatives.
Beer rebrand
The business was working with Alvarez & Marsal on a range of options to store up its finances.
Since then, the company unveiled a complete rebrand of its core beer range across both the off and on-trade. The revamp came after the Southwold brewery celebrated its 150th anniversary.
The aim of the rebrand was to allow all beers to be under one unified looks with the new look bringing out the sense of place and connection to where the brews are made.
Adnams is set to file full year accounts for the period ending 31 December 2023 in late May, ahead of its AGM on 27 June.
