Highlights
- Sales of £47.1 million down from £47.4 million
- Operating profit £1.5 million down from £4.2 million
- Final Dividend £1.22, unchanged from 2007
- Results impacted by:
- weak beer market (total on-trade down by 9.3%), softening consumer confidence, the effect of regulatory and lifestyle changes in pubs;
- decline of sterling against the euro in the wine business
- Strong balance sheet and highly cash generative
- Successful actions put into place to mitigate the impact of the economic downturn
- Continued successful brand innovation, with East Green, the country’s first carbon neutral beer
- Opened new Cellar&Kitchen store in Richmond upon Thames and new flagship store in Southwold
- Long term investment and being true to our values provide the foundations for sustainable growth in the future
Commenting on the performance in 2008, Jonathan Adnams, Executive Chairman, said:“During 2008, Adnams has achieved a great deal, holding true to our values, despite the global economic crisis and challenges faced by our own industry.
“Over the past few years we have successfully repositioned Adnams to meet those challenges and have invested in the business to provide the foundations for sustainable growth.
“We have developed and launched our award-winning Cellar&Kitchen stores, which have great potential for the future and provide a new stream of earnings for the Company. We have also invested heavily in our brand, our staff and in our infrastructure. These actions have given us a powerful position for the future but have impacted the short term profitability of the business.
“We have had many successes throughout 2008, including a number of national awards recognising excellence in retailing, great products and efforts to reduce our impact on the environment.
In the first quarter of 2009 we have supported pubs by freezing Adnams beer prices throughout the year. In the last few weeks we have added 3 stunning Suffolk pubs to our estate and were delighted to receive the inaugural Corporate Social Responsibility award at the Publican Awards. When the time comes, we believe Adnams is well positioned for the economic revival.”
A copy of the 2008 Annual Report & Accounts has been posted to shareholders today.
For further information please contact:Jonathan Adnams, Executive Chairman: 01502 727 200 Emma Hibbert, Head of Corporate Affairs: 01502 727256. 07766 206203 emma.hibbert@adnams.co.uk