Adnams pledges operational changes after failing ‘to return to a sustainable footing’

Brewer and pub operator Adnams has warned it is closing some of its “less optimal retail sites” after “extremely challenging market conditions” delayed the positive financial impact of its turnaround plan.

The Suffolk-based brewery, which previously said its “level of indebtedness is unsustainable”, reached £15m in debt in 2024. That year, it was reported Adnams was considering an outright sale of its 150-year-old business after it instructed advisers to look into funding options to secure the financial future of the business.

In the 12 months ended 31 December 2025, the firm reduced net debt from £15.3m to £9.2m at year end. However, revenues of £63.7m were £4.3m lower than the prior year, of which £1.7m was attributed to a reduction in owned sites and £1.2m to a fall in contract work.

Operating profit did return to the black, bouncing back to £0.47m, reflecting progression from a £1.1m loss in 2024 and a £2.5m loss in 2023.

Adnams’ balance sheet restructuring was enabled by the disposal of a number of sites, which chair Simon Townsend described as “a difficult decision to implement” though “absolutely necessary to enable the company to survive”.

The firm’s estate now comprises nine managed properties, one temporarily managed and 17 tenanted properties. During the year it transferred the White Hart, Aldeburgh, from tenanted to managed. On a like-for-like basis, managed property revenues grew 4.3%, with the Five Bells, Wrentham, delivering 10% growth.

Townsend said: “Our 2025 planned asset disposal programme is now largely complete; however, we will continue to identify assets for disposal against criteria in order to positively recycle the proceeds derived into earnings and value-enhancing investments, should the opportunity arise.”

Chief executive Jenny Hanlon wrote in the company’s annual report: “2025 has not delivered a result that returns the business to a sustainable footing, which is why further change lies ahead. Cost efficiencies achieved so far were significant, but it has become clear that there is greater opportunity in more fundamental operational change.”

She added that Adnams has spent “considerable time” assessing its route to market options for its on-trade business, and warned: “This process is nearing completion and will see some operational changes as a result. The aim of these will be to reduce the underlying cost base and introduce much-needed cost variability, whilst minimising any impact on our customers.

“We are in the process of closing some of our less optimal retail sites and will only look to open further sites when we are confident that we have an appropriate model that sees a route to better returns.”