Adnams ‘reducing the costs of operating’ while searching for funds

Adnams has insisted it is taking action in turning its business around, but is still on the lookout for debt solutions.

Last year, Adnams told db it was “evaluating offers” for moving its business forwards with a view to revealing plans in the summer of 2024. However, since then, following the release of its annual results just last month, its interim chair Simon Townsend admitted that there is “no positive support whatsoever from the government” and lamented that, at present, Adnam’s debt pile remains “unsustainable”.

As confirmed in the Southwold-based pub, beer and spirit company’s statement ahead of its AGM, Adnams was able to reduce its level of debt over the previous 12 months and has lowered its borrowings by a further £7 million compared to June 2024. Despite these accomplishments its current debt, however, still stands at £11.5 million.

During the AGM, non-executive chair, director Simon Townsend confirmed that Adnams would be “focusing on growing value for shareholders by improving the financial performance of the company, driving profitable sales growth across all our channels and at the same time reducing the costs of operating the business”.

How the company would exactly be lowering operational costs and where cuts would be made were not divulged, however without any portion of the business being sold off, there are queries over where the business has reduced its spending.

Despite rumours of its demise, Adnams CEO Jenny Hanlon adapted the tone of the company’s outlook and said: “We’re certainly demonstrating a grittier commercial approach and already driving down our level of debt and looking at where the solutions lie for us to produce consistent profitability throughout our operations of beer, spirits and estates.”

Hanlon highlighted how the recent AGM has helped to remind how both the Adnams team and its shareholders shared a hunger for moving the business forwards, but also a determination to succeed without losing sight of the company’s values and ethos.

Hanlon said: “Our AGM really did underscore how our shareholders share our appetite for a forward momentum which is not afraid to inject commercial pace, while retaining our core Adnams’ values.”

db has contacted Adnams urging the business to offer more information on its proposed route out of the situation it finds itself in and how it will navigate the debt pile.

Hanlon explained: “We’re being extremely clear about our focus and the pace and precision with which we intend to deliver on that. There’s no excuses, no explaining away circumstances of economy or societal challenge – just a real robust resilience with which to make Adnams be its profitable and proud best, always retaining its ethos and heart.”

Hanlon told db: “The second half of this year sees us maintaining a focus on building a solid future for our cherished brand, while growing value for shareholders.”

In terms of its upcoming plans, the coming year will see Adnams particularly focused on two strands of activity – its Ghost Ship brand, and ‘Destination Southwold’.

Added to this, Adnams has also confirmed permission has been granted for a 49,000 tonne anaerobic digestion facility, which will go ahead at Reydon. The project sees a partnership with hospitality business and sustainability specialist Bio Capital.

Hanlon insisted that “the board of Adnams, and those who work throughout our business, are focused on delivering with openness and transparency as we move ahead in the second half of 2025″. Despite these claims, the company has remained silent on questions over how it is reducing costs and also how it will secure funds to avoid either sale or closure.

Hanlon, instead, proffered the assurance: “We are committed to an action-led approach which will underpin our turnaround plan and ensure a solid and exciting future for our cherished brand.”

The writing was on the wall for Adnams last February when the business sent the industry into panic following news it was seeking guidance from advisors to raise funding making the sector aware that its next steps were crucial for its survival.

The situation continues to overshadow the business and, speaking to db last year at the point Townsend stepped down, a spokesperson for Adnams admitted: “Adnams has been experiencing significant inflationary pressure on its labour, energy, raw ingredients and borrowing costs. Alongside this, we’ve seen weaker overall consumer demand, as households come under the same financial pressures.”

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