Adnams warns that 2009 could be worse than 2008

Brewer and pub operator Adnams today warned that 2009 would be "as bad or worse" as last year for the pub industry as it reported a drop of more than 60% in annual profits.

While turnover for the year to 31 December only dropped 1% to £47.1m, rising costs meant profits fell to £1.5m (2007: £4.2m).

The company blamed falling consumer confidence for hitting demand, with pressure from supermarkets using alcohol as a loss leader, higher running costs and a heftier tax burden adding to the squeeze on margins.

Executive chairman Jonathan Adnams admitted there were no signs of recovery. "From today's perspective it is hard to see much light at the end of the global economic tunnel and we have to anticipate a tough 2009," he said.

Adnams, which sold six pubs in the autumn, said it was continuing with plans to dispose of poorly performing pubs and added that it recently completed the purchase of three "high quality" pubs from Punch Taverns.

"We will continue to keep a strong control over costs, but we will also keep our eyes on the longer-term future and position the company to take advantage of opportunities as they arise," Jonathan Adnams said.

Adnams warns trading conditions for UK pubs are deteriorating >>

S&N pays £1.2m for four Adnams pubs >>

Adnams warns of tough 2008 for pubs >>

Punch solicits offers for any of its pubs >>

2,000 pubs have closed since 2008 beer tax hike >>

By Daniel Thomas

E-mail your comments to Daniel Thomas here.

Caterersearch.com jobs
Looking for a new job? Find your next pub job here with Caterersearch.com jobs