The company expects debt to fall further to around £8m by the end of September, supported by the disposal of non-trading assets and a small number of pubs, with trading arrangements maintained where possible.
Interim chair Simon Townsend said the debt reduction had strengthened Adnams’ relationship with Barclays, which had “actively demonstrated their willingness to collaborate with us as a true partner.”
Group revenue for the six months to 30 June fell 5.7% to £30.1m, with performance affected by site disposals and wider market pressures. Operating income before gains on disposals was flat year-on-year at £1.5m.
Flagship brands
Exceptional costs of £1.2m, largely linked to Extended Producer Responsibility (EPR) charges on packaging, contributed to an operating loss of £0.7m.
The group reported resilience in its on-trade, with June trading up 3.3% against an 8.5% market decline. Its direct on-trade business, serving independent pubs, grew 18% in June, supported by wine and spirits sales and favourable weather.
Managed properties delivered revenue growth of 5.8% on a like-for-like basis, reflecting stronger hotel occupancy and food and drink sales.
Adnams says it is maintaining its focus on flagship brand Ghost Ship and Destination Southwold. Ghost Ship 0.5% continues to lead the low/no category and will be rebranded as Ghost Ship Alcohol Free, moving from a 330ml to 440ml can format to support further off-trade listings.
Areas of opportunity
A new variant, Ghost Ship Session IPA, will launch this month to mark the brand’s 15th anniversary.
The company also confirmed the appointment of Andy Driscoll as CFO from Monday 1 September, succeeding interim CFO Robin Paul.
Townsend said: “We have much work to do as we implement our sales and marketing plans to enable the business to grow again into areas of opportunity.
“With the benefit of a stable balance sheet and substantially lower debt, and by driving a much greater degree of commerciality across the business, we can look to the future with confidence.”
- This story was originally published The Morning Advertiser’s sister publication MCA here.
