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Adnams plc - Final Results
Adnams Results for the 12 Months to 31 December 2023
· Sales rise 3% to
· Year-on-year beer volumes rose 3% in second half of 2023 and 11% in first quarter 2024 trading
· Operating losses widen to
· Pre-tax loss of
· Positive EBITDA of
· Net bank debt increases to
Adnams plc (the "Company"), the
The Company said whilst multiple factors had continued to challenge brewing and hospitality throughout the year, it was pleased to report sales had increased 3% to
It said positive contributions had been made by every part of its business, particularly in the second half of the year when its off-trade business materially outperformed the market.
The Company said off-trade sales had increased 14% year-on-year supported by new national listings with several major retailers, wholesalers and pub companies, citing Ghost Ship 0.5% - now the
The Company said its full year loss had widened to
In April this year, the Company reported positive first quarter trading for the three months ending 31st March 2024, with total sales up 11% year-on-year, with a notably strong contribution from its on-trade business and contract distilling in its spirits business, which it said showed continued forward momentum.
Andy Wood, Chief Executive Officer of Adnams plc - who steps down from his role at the end of June to be replaced by Jenny Hanlon - said: "As we continue to pursue our strategy, it's important that we leverage our distinctive strengths - as a heritage-rich, innovative company - to their fullest. The Adnams brand continues to hold significant equity and is championed and cherished by its customers.
He added: "The coming months will see the company undergo further change as it is positioned for further growth. This change is likely to result in a simplified operating model that encompasses the things the business does well, whilst reducing its borrowings,
susceptibility to economic shocks and building greater resilience."
The Company also confirms that it is continuing to explore a range of options to fund its future growth plans with the support of its advisors and has received an encouraging response to the process. 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 yet been taken.
The Company will continue to keep shareholders appraised of developments at the appropriate time.
Adnams plc's AGM will take place on 27th June.
For further information contact info@adnams.co.uk
Chairman's Statement (from accounts released 22nd May 2024)
Given the press speculation in February, I am acutely aware that such news would have been very troubling for shareholders. I would like to take this opportunity to reassure you that Adnams has a strong balance sheet, supportive banking partners, loyal customers and a team of people committed to resolving the current challenges the company faces. Across the sector, over 500 pubs closed last year with the loss of over 6,000 jobs (British Beer and Pub Association) and dozens of independent breweries were shuttered, with a net reduction of 13 in the
It is against this backdrop that Adnams reports a 3% growth in revenues for the full year to
At the half year, our losses before tax had widened to
Losses continued into the second half of last year. However, we began to see cost reductions come through and some better sales performance particularly in beer and spirits. These early signs of improvement are continuing into the early months of 2024, helped by falling inflation and a softening of some of the most severe cost pressures. Similarly, a range of initiatives across the business have already begun to yield results, including significantly increased distribution in the off-trade market through important national listings with several major
Whilst we have some further headroom in our financing arrangements, as we confirmed earlier this year, we are in active discussions to find a more permanent solution to our medium- and long-term financing arrangements, with the ambition of further strengthening our balance sheet and providing new capital to invest in our growth. This could lead to the disposal of some freehold assets as we seek to simplify and revise our operating model for the future. Discussions are ongoing and we will update shareholders at the earliest opportunity.
Despite the vagaries of the economy, I'm particularly pleased to report that our commitment to support our people and our communities has remained, building on a tradition we've upheld for more than 30 years.
I'm also pleased to report that the Board's succession planning - announced last July - has completed, with the appointment of Jenny Hanlon as Chief Executive, effective 1st July, to replace Andy Wood.
As Chief Financial Officer and a Board member for four years, Jenny has played an important role in stewarding the business during a period of unprecedented challenge posed by the Covid-19 pandemic. I firmly believe Jenny is the ideal candidate to lead us through the next chapter of Adnams' evolution, both in stabilising our financial footing but also in capitalising on our unique strengths and opportunities.
Andy will be remaining with the business until the end of the year in a consultancy capacity to ensure a smooth handover, but I'd like to take this opportunity to thank him for his contribution to the business over a 30-year career, including 14 as Chief Executive. He has been a driving force in shaping Adnams into the business it is today, helping us to transform from a regional brewing company into a diversified beer, wine and spirits company with a pub, hotel and retail estate, whilst leading the team with both principle and professionalism. He has also championed the business's commitment to sustainability, which has seen Adnams become a beacon of environmental achievement at both a regional and national level. We will be forever grateful for the lasting impact he has had on Adnams and wish him well for the future.
After more than 35 years at the company, Karen Hester retired on 6 April 2024. Over the 35 years that Karen has been with Adnams she has provided invaluable support in her different roles with unwavering dedication and commitment. Everyone at Adnams wishes her health, happiness and success in the future.
I would also like to thank the Board for its valuable counsel throughout this past year and in advance for their continued support as we look towards the next, exciting stage in our development. Finally, I would like to thank the wider Adnams team and shareholders for their support during these challenging times.
Dr Jonathan Adnams OBE
Chairman
Profit and loss account
For the year ended 31 December 2023
|
2023 |
2022 |
Turnover |
66,344 |
64,215 |
Other income |
4 |
62 |
Operating expenses |
(68,863) |
(65,504) |
Operating loss |
(2,515) |
(1,227) |
Gain on disposal of assets |
- |
2 |
Loss before interest and taxation |
(2,515) |
(1,225) |
Gain on financial instruments at fair value |
34 |
(212) |
Interest payable and similar charges |
(1,635) |
(759) |
Other finance income on pension scheme |
52 |
(89) |
Loss before taxation |
(4,064) |
(2,285) |
Tax on loss on ordinary activities |
951 |
757 |
Loss |
(3,113) |
(1,528) |
Loss per share basis and diluted |
|
|
'A' Shares of 25p each |
(164.9) |
(81.0)p |
'B' Shares of |
(659.8) |
(323.8)p |
Balance sheet
As at 31 December 2023
|
2023 |
2022 |
Intangible assets |
1,778 |
1,939 |
Tangible fixed assets |
33,500 |
34,900 |
|
35,278 |
36,839 |
Current assets |
|
|
Derivative financial instruments |
- |
16 |
Stocks |
7,955 |
10,615 |
Debtors |
6,225 |
5,171 |
Cash at bank and in hand |
567 |
693 |
|
14,747 |
16,495 |
Creditors: amounts falling due within one year |
(17,276) |
(16,288) |
Net current assets |
(2,529) |
207 |
Total assets less current liabilities |
32,749 |
37,046 |
Creditors: amounts falling due after more than one year |
(10,189) |
(10,180) |
Derivative financial instruments |
(178) |
(228) |
Provision for liabilities |
(91) |
(1,106) |
|
(10,458) |
(11,514) |
Net assets excluding pension liability |
22,291 |
25,532 |
Pension asset/(liability) |
- |
- |
Net assets including pension liability |
22,291 |
25,532 |
Capital and reserves |
|
|
Called-up share capital |
472 |
472 |
Share premium |
144 |
144 |
Profit and loss account |
21,675 |
24,916 |
Equity shareholders' funds |
22,291 |
25,532 |
The Directors have not recommended a final dividend for the financial year ending 31 December 2023.
The information contained in the above profit and loss account and balance sheet has been extracted from the audited accounts of Adnams PLC for the year ended 31 December 2023. The statement preceding the profit and loss account is unaudited.
ENDS
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