Adnams PLC - AGM Statement

Adnams plc - AGM Statement

The Directors of Adnams plc ("the Company"), the Suffolk-based premium beer, spirits and hospitality group, held the Company's AGM on 27th June 2025.

The Company presented a detailed review of its previously announced financial performance for the year ending 31st December 2024, highlighting sales growth of 2.6% to £68.1m (2023: £66.3m), EBITDA growth to £1.8m and a reduced operating loss to (£1.2m). Borrowings were reduced by 3.9% during the year to £15.3m. The company confirmed its previous announcement that no dividend was to be paid.

Simon Townsend, non-executive director, who was appointed as interim chair on 12th September 2024, expressed his sincere thanks to Jonathan Adnams for his significant service to the company over almost half a century. Mr Townsend also confirmed that Steve Sharp, non-executive senior independent director, would retire from the board in September 2025 and that it was also the Company's expectation that a permanent Chief Financial Officer would be appointed soon.

The chair also reported that increased employers' National Insurance contributions, announced by the Chancellor of the Exchequer in October 2024, would add approximately £1m to the company's employment costs in 2025, and that the Extended Producer Responsibility Levy would add a further £1m to the company's costs in 2025, both of which would have to be recovered through price increases, productivity improvements and further cost reductions where possible.

Simon Townsend said:

"We have to establish a trajectory of performance improvement which will allow us to reduce the costs of servicing our debt, increase our confidence in making transformational investments in our pubs, hotels, brands and production capabilities, and reduce the absolute level of debt that we carry - all leading to sustainable growth in shareholder value. We have reduced our overall level of debt further in the year-to-date and by the end of June 2025 will have reduced our borrowings by a further £7m compared to the same time last year, with current debt now approximately £11.5m.

"We will continue to focus on growing value for shareholders by improving the financial performance of the company, driving profitable sales growth across all our channels and at the same time reducing the costs of operating the business."

Mr Townsend reported that Board costs were expected to reduce in 2025 by approximately 33% (c£400k) on 2024 and 2023 levels.

Jenny Hanlon, who became Chief Executive on 1st July 2024 said:

"Sales in 2025 sees a 24% increase in Ghost Ship 0.5%, 6.5% like for like growth in our managed properties, 4.2% growth in our retail business and a 10% growth in our wine sales to our Direct Customers in the second quarter of the year. On our cost base there is a 10% reduction in overheads across the whole business.

Clear, focussed planning and execution of simple and easy to understand actions is at the heart of this turnaround story. Underpinned by our sales and marketing strategy that all our business can get behind; Ghost Ship and Destination Southwold."

ENDS

For further information contact info@adnams.co.uk