AGM Statement

Adnams PLC

26 June 2026

 

Adnams plc - AGM Statement

The Directors of Adnams plc ("the Company"), the Suffolk-based premium beer, spirits and hospitality group, held the Company's AGM on 26th June 2026.

The Company presented a detailed review of its previously announced financial performance for the year ending 31st December 2025. Revenues for the year had been £63.7m and whilst brewery volumes fell 6% year on year, they had outperformed the market decline of 8% in the prior year. Operating profits grew from a prior year loss to a profit of £0.5m, as a result of improved operations and disposal of non-core assets. Pre-tax losses reduced to (£0.7m) with an adjusted EBITDA of £0.5m.

The Company confirmed its previous announcement that no dividend was to be paid, although it was hoped to be able to establish a dividend policy going forward.

Simon Townsend who was appointed as Interim Chair in October 2024, and whose position as Chair was confirmed at the beginning of April 2026, updated shareholders on changes in the Board since the last AGM, all as previously announced, with Steve Sharp having retired from the board and Andy Driscoll joining the Company as Chief Financial Officer in September 2025.

In terms of performance, he confirmed that 2025 had been a difficult year for the Company, following a series of loss-making years. Whilst the Company had already commenced the process of disposing of a number of assets, the disposal programme continued throughout 2025, comprising assets that had either delivered historically low returns, or those with unattractive earnings prospects, or those in peripheral locations to the Company's core geographic footprint.

The disposal process had been well managed and secured proceeds in line with market value with which to reduce the Company's borrowings such that the net asset value of the Company had therefore been preserved.

Mr Townsend said:

"I am enormously grateful to Jenny Hanlon and her team for steering the Company through such a difficult period of intense activity and to the entire Adnams team for all their hard work and loyalty during the period, and their commitment to the changes necessary to turn this company around."

He went on to say that the cost increases arising from the October 2024 budget, including changes to National Insurance contributions, the National Minimum Wage and Extended Producer Responsibilities had all come into effect during 2025, adding an estimated £2 million to the Company's cost base. Additionally, global geopolitical tensions have caused input price inflation, fuel cost increases and interest rates to remain stubbornly high.

Sales fell by just over £4m in the year, of which two thirds was due to the reduction in sites combined with the loss of some contract brewing and distilling work. Adjusted EBITDA fell as a result but pre-tax losses were reduced on the prior year.

The management team had also secured a further extension of the Company's borrowing facilities with Barclays through to June 2027, and the balance sheet repair that had been undertaken now means that the Company can secure a longer-term facility from lenders, and it was confirmed that banking discussions have already started in this regard.

The Company will focus its resources on those activities where it can leverage the strength of these strategic assets, exit or outsourcing those activities where it cannot grow profitable sales, reduce costs or gain competitive advantage.

First and foremost, Adnams is a hospitality business with a brewery at its heart.

Jenny Hanlon, Chief Executive said:

"We have worked tirelessly to gain market share.  For example, in ale, we outperformed the market by 2%, which included securing over 3,700 new distribution points in the last 12 months across all the major supermarkets. Additionally, in 2026, our direct free trade business is holding value year on year, in a market that is facing significant decline."

She went on to say:

"Nationally in pub companies, we've had significant success with our fastest growing beer, Ghost Ship Alcohol Free, with our latest big win being with Marstons for distribution in all of their 1,300 sites across the country. We retained and renewed our presence as primary ale supplier into Lords, with "Old Father Time" in the Members bar.  In addition, we are also the exclusive beer provider to the Le Mans 24 hour race."

It was confirmed that the Company had reduced its debt to target and now had an interest bill that will be £0.5m less in 2026 than in 2025 and a number of cost reduction and efficiency initiatives continued to be pursued.

The Company has a well invested, modern brewery and the Company continue to review how it operates amid developments in the market, to ensure it maximises its efficiency, and its latest monthly running costs continue to improve from its Q1 levels.

Andy Driscoll, who became Chief Financial Officer on 1st September 2025, reviewed the financial performance for the year. He said:

"My top priority since joining Adnams just over 9 months ago has been to comprehensively unpick and understand the interlinked nature of the many parts of the Company in detail and understand the cost drivers, interdependencies and true level of profitability (or otherwise) in each channel or business unit.  This has helped lead us to some decisive action."

ENDS

For further information contact [e-mail]

 

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