Adnams reduces debt by £7m as it navigates cost pressures

Published 27/06/2025, 14:06
Adnams reduces debt by £7m as it navigates cost pressures

LONDON - Adnams plc, the Suffolk-based beer, spirits and hospitality group, has reduced its borrowings by approximately £7 million compared to the same period last year, with current debt now standing at approximately £11.5 million, according to a statement made at the company’s Annual General Meeting on Friday.

The company reported that its 2024 financial performance included sales growth of 2.6% to £68.1 million and EBITDA growth to £1.8 million, while reducing its operating loss to £1.2 million. No dividend was paid for the year.

Interim Chair Simon Townsend noted that Adnams faces significant cost pressures in 2025, including approximately £1 million in additional employment costs due to increased employers’ National Insurance contributions and another £1 million from the Extended Producer Responsibility Levy.

"We have to establish a trajectory of performance improvement which will allow us to reduce the costs of servicing our debt," Townsend said in the press release statement, adding that board costs are expected to decrease by approximately 33% (about £400,000) in 2025 compared to previous years.

Chief Executive Jenny Hanlon reported positive sales trends for 2025, including a 24% increase in Ghost Ship 0.5%, 6.5% like-for-like growth in managed properties, 4.2% growth in retail business, and 10% growth in wine sales to direct customers in the second quarter.

The company also announced that Steve Sharp (OTC:SHCAY), non-executive senior independent director, will retire from the board in September 2025, and that a permanent Chief Financial Officer is expected to be appointed soon.

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