Adnams sees turnover increase but investment projects hit profits
Brewery, hotel and pub operator Adnams has seen turnover increase by 5.6% to £78.9m in 2018 with low and non-alcoholic drinks proving to be a particular growth area.
Operating profit across the group was up 25.6% to £1.6m, however the group recorded a pre-tax loss of £877,000 for the year compared to a profit of £1.5m the year before.
The hit to profits followed increased operating costs and major investment.
CEO Andy Wood said: "We are investing in our long term future and the creation of the award winning Copper House Distillery, radical upgrade of our brewery, the complete renovation of the Swan Hotel and the renewal of our core computer system. Adnams takes great pride in respecting and supporting its local community and the environment. Everything we have done and are doing, supports our absolute focus on delivering memorable experiences for our customers in our hotels, pubs, shops and online. We have been innovating and evolving since 1872 and we won't stop."
The Swan hotel in Southwold saw its first full-year of trading following refurbishment in 2018 recording a 36% increase on its last full-year of trading in 2016. The group also saw a 35% increase in sales of its low and no-alcohol beers.
However, adverse weather conditions early in the year had an impact on managed pubs, although sites with gardens were able to reap the rewards of a warm summer.
The group said that cost pressures including increases in National Living Wage had an impact, however added that despite this the board "believe that the self-reinforcing benefits of a strong pub with a strong brand, place the Adnams estate in a good position and year-on-year like-for-like trading in our tenated estate was broadly consistent despite the negative trends in the industry."