Adnams losses shrink amid turnaround plan

Adnams has reported a 3% increase in sales in the 12 months to 31 December to £68.1m.

Operating losses shrank by more than half, from £2.5m in 2023 to £1.1m in 2024, while adjusted EBITDA grew from £568,000 in 2023 to £1.2m in 2024, delivered “through careful price management and cost control”.

Net debt stood at around £15m which the board described as “unsustainable”.

Adnams interim chair, Simon Townsend, said: “In simple terms, the company’s current level of indebtedness is unsustainable and we have therefore embarked upon a programme of asset disposals, the proceeds of which are being used to reduce the company’s borrowings. The asset disposal programme will continue until such time as the company’s earnings are sufficient to support its debt."

He continued: “Profitability across the business has been extremely unpredictable, and whilst most parts of the business failed to meet our budget expectations during the year, our hotels, managed pubs and tenanted pubs performed satisfactorily under the circumstances.”

Trading in Adnams hotels and pubs saw “revenues remain relatively static”, while room occupancy was up year on year, with a year average increase of 1% compared to 2023 and 18% increase on 2019.

Its flagship hotel the Swan in Southwold was one of the first hotels to receive a Michelin Key in October 2024.

In terms of food, the pub company noted a growth in lighter bites and snacks as customers attempt to stick to a budget.

“Ensuring the food offering meets our customer needs, maximises footfall and keeps the bar busy too,” said chief executive Jeni Hanlon.

Townsend added: “The market in which we are operating continues to be immensely challenging, and our business is having to become unashamedly commercial if we expect to be able to compete effectively, grow our share and improve our underlying performance.”