Adnams closes stores, adjusts borrowing and looks ahead
Adnams has remained open about its loss-making, asset disposal and borrowing position. But how is it faring? In an exclusive interview, the Suffolk-based hospitality, brewing, and distilling business’s CEO Jenny Hanlon tells Jessica Mason how she is having to make “some really difficult decisions” to assist in “building a stronger, more resilient Adnams”.
At its recent AGM, Adnams presented a review of its financial performance for the year ending 31 December 2025. The tone was bleak and the company confirmed that, indeed, once again, no dividend would be paid to shareholders.
Challenges
The business’s challenges have not been overlooked. After all, it wasn’t long ago that the suggestion of the business being sold off was being mulled and rumours circulated on how it might fund its future.
Looking at the annual figures, Adnams’ brewery volumes have fallen 6% year on year and, although these had outperformed the market decline of 8% in the prior year, last year, it revealed, had still been tough.
As the business continued to navigate around £2 million of cost increases that it had needed to swallow from the October 2024 budget, which included changes to National Insurance contributions, the national minimum wage and extended producer responsibilities, a perfect storm had emerged and the company needed to adjust the sails.
Navigation
Revenues for 2025 had been £63.7 million, and while operating profits had grown from a prior year loss to a profit of £500k most of this had been achieved from throwing things overboard and disposing of non-core assets.
Pre-tax losses reduced to £700k with an adjusted EBITDA of £500k and the business appeared to be managing to, just about, stay afloat, despite rising fuel costs, interest rates not giving any respite and price inflation continuing to present challenges.
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Looking at the figures, the good news appeared to be in the fact that the business was still riding the waves. Sales fell by just a little more than £4 million in the year, primarily owing to the business having reduced its sites as well as losing about of contract brewing and distilling bunce from other drinks producers, but the ship was and is still on the water.
Borrowing and closures
The company also admitted that it had secured a further extension for borrowing via Barclays which should take it through to next June and this also now means it can secure a longer-term borrowing from lenders now that its balance sheet is back on track. That said, the business closed down five stores this year. These were in Hadleigh, Norwich, Frinton-on-Sea, Saffron Walden and Stamford.
Speaking to the drinks business, Adnams CEO Jenny Hanlon said: “Adnams’ leadership team is acutely aware that we’ve had to take some really difficult decisions in recent times, but these are decisions which are allowing us to continue investing in the areas where we see the strongest long-term potential for a brand that has been successful and much loved for generations.”
Retail situation
Hanlon explained that she has “taken a close look at our retail estate to ensure we’re operating in a way that truly reflects how our customers are shopping today” and revealed that “by focusing on fewer sites, we’re able to invest in each of them, enhancing the customer experience and creating destinations that truly showcase the very best of Adnams”.
Could this be a shrewd move, or simply an explanation for reducing its business to free up cash? Hanlon told db: “This isn’t about reducing what we offer – it’s about focusing on what we do best and dialling up the quality of the experience for everyone who visits us.”
Resilience
Hanlon had also noted that the business has been working “tirelessly” to regain market share and admitted that, in a market that is facing significant decline, there are some successes if you look at its progress with its alcohol free variant of Ghost Ship ale.
Backing up its latest moves, Hanlon insisted: “Our absolute priority is building a stronger, more resilient Adnams and added: “We remain committed to producing exceptional products, creating unforgettable experiences in our venues, and supporting the communities where we operate, all while making sure the business is fit for the future.”
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