Adnams sees operating profit fall in ‘tough' year for pubs and hotels

26 March 2014 by
Adnams sees operating profit fall in ‘tough' year for pubs and hotels

Suffolk brewer and pub company Adnams has seen its operating profits dip slightly in the 12 months to 31 December 2013, despite a rise in revenues.

The company's turnover during the period was up 6.3% to £60.5m, but operating profits were down 2% to £3.3m.

It also managed to reduce the debt it owes by £3m, to £10.8m.

The company said it enjoyed a 1.2% growth in beer volumes, and a 6% increase in like-for-like turnover in its Cellar & Kitchen 12-strong retail brand, which sell wine, beer and homeware.

However it said that after two "strong" years, its pubs business suffered a tough 2013, and while much of the estate traded well, it had a number of pubs that ran into difficulty in the first half of the year, with some being moved into temporary management.

It also said that its two coastal hotels, the Swan and the Crown, both in Southwold, endured a tough year as a result of poor weather. Adnams chairman Jonathan Adnams (pictured) added: "Consumer trends in relation to hotel visits are also a challenge and the cost of such visits is a relatively easy saving in harder economic times."

Commenting on the performance overall, Jonathan Adnams said: "Despite a difficult start to 2013 due to adverse weather conditions and poor consumer confidence, we saw a much-improved second half to the year as the economy, and the weather, started to pick up. 2013 was a year of many achievements for Adnams, with the introduction of new beers, our first whiskies and a number of prestigious awards across all areas of the business.

"I am delighted to announce that Adnams Triple Grain Whisky and Adnams Single Malt both picked up medals at the World Spirits Awards in San Francisco earlier this week. 2014 has started reasonably well for us and we believe that our long-term focus will help us to surmount the challenges that we will undoubtedly face."

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