Southwold: Adnams results reveal stronger second-half

SOUTHWOLD brewing, distilling and leisure retail company Adnams today posted largely unchanged sales and profit figures for 2010 following an improved second half to the year.

Adnams reported turnover of �50.912million for the 12 months to December 31, against �51.321m in 2009, while operating profits came in at �3.188m compared with �3.238m the previous year.

At the half-year stage operating profit was running 10% behind 2009’s figures.

There was a slightly bigger hit to pre-tax profits, which totalled �2.818m against �3.110m, but this largely reflected a bigger one-off profit from property sales in 2009 and a pension scheme charge last year.

The final dividend will remain unchanged at �1.22 per share.

Adnams said its beer volumes had performed in line with a falling market last year while beer prices had again he held for the company’s pub tenants and free-trade customers.

Chairman Jonathan Adnams said: “Over many years Adnams has been building its brand and reputation and extending it beyond our core business in brewing and pubs but these markets remain key and again it has been very tough in 2010. 20% less beer is consumed in the UK than was consumed six years ago, and the reduction is 30% when looking just at drinking in pubs.

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“Two notable projects completed this year bear testament to our innovative and forward-looking approach: the microdistillery that we have built in the old brewery copper house and the anaerobic digester that we, together with the Bio Group Ltd, opened on our site at Reydon.”

He added: “A year ago I sounded a note of caution looking forward to the prospect of a general election and tax increases.

“As it turned out, 2010 was a steady year for the economy as a whole, but it looks as though we may see tougher times in 2011, starting with the VAT increase to 20% at the beginning of the year and with the prospect of substantial public sector cutbacks.

“Nonetheless, Adnams believes itself to be well placed. Our balance sheet and brand reputation are strong and we have the team in place to grow, develop and innovate.”