TIDMADB
RNS Number : 0046I
Adnams PLC
12 April 2022
Adnams plc Results for the 12 Months to 31 December 2021
Adnams, the brewer, distiller and retailer has today published
its Report & Accounts for the 12 months to 31 December 2021,
showing sales of GBP57.4m and a GBP0.9m operating loss.
Commenting on 2021, Jonathan Adnams OBE, Chairman said: "Once
again, I was delighted to see how our customers adapted to multiple
changes to government restrictions as the year progressed and
people enjoyed our pubs and hotels with good cheer and a generosity
of spirit towards our frontline colleagues. The loyalty and support
of our customers throughout the pandemic has been vital and I would
like to take this opportunity to record my heartfelt thanks to
them".
The Adnams Report & Accounts headlines include:
-- Sales grew from 2020 to GBP57.4m
-- Beer volumes level with 2020
-- Net bank debt GBP11m
-- Positive EBITDA of GBP2.6m
-- No 2021 final dividend
After the early months of the year where restrictions were at
their most stringent, trading months operated ahead of
expectations, delivering GBP7m higher revenues than 2020. Strong
cost control and investment in our IT systems technology, enabled
the business to mitigate the financial impact of the pandemic and
position us well for 2022.
We won a number of awards in the year, including:
-- CAMRA awarded Adnams with a Golden Pints Award to mark their 50(th) Anniversary
-- Worlds Whiskies Awards: Gold for Rye Whisky - Best English
Rye Whisky, Silver for Single Malt Whisky and Bronze for Triple
Malt Whisky
-- International Beer Challenge Kobold English Lager won Gold
And launched various new products with an ESG theme:
-- Smidgin, part of our low and no offering, a gin that is
strong in flavour and so only a tiny measure is needed. 8 Smidgins
contains the alcohol content of one normal G&T
-- In-store refill stations offer the opportunity to purchase a
range of Adnams products in a refillable container
-- Wine in a box containing the equivalent to 3 bottles, their
carbon footprint is around 10 times smaller than a single-use
bottle due to their reduced weight
Ghost Ship in both 4.5% and 0.5% formats continued as the
company's best-selling beer and Copper House Dry Gin remained its
best-selling spirit.
Chairmans Statement (from accounts released on 12 April
2022)
When I sat down to write this statement it gave me the
opportunity to reflect on what a tumultuous two years the company
and the wider hospitality industry has faced. As we begin to move
from the pandemic to coronavirus being endemic and hopefully
subsiding within the population, we can look forward to things
returning to some normality. From Adnams' perspective that
normality includes being able to welcome our shareholders to our
AGM at Snape on the 12th May 2022, an event we look forward to.
The year began with the country in lockdown and the hospitality
industry closed. This meant that the company had to continue to
operate on a footing very similar to that which it operated for
much of 2020, namely: focusing on its online and off-trade business
and seeking to retain cash in the business. Whilst this situation
is very uncomfortable and incurs losses, the business has become
highly competent at managing itself in this situation and adapting
rapidly to changing rules, regulations and restrictions. As the
darker winter months gave way to an optimism associated with the
spring, on the 22nd February the Prime Minister announced his
roadmap to reopening the economy.
Key dates for our industry were; 12th April, when pubs were
allowed to open for outdoor service only, 17th May, when customers
were allowed inside following the rule of 6 or two households
mixing; and finally from 21st June all restrictions being removed.
The announcement was followed by the Budget speech on 3rd of March
where the Chancellor extended flexi-furlough until September and
announced a tapering of business rate relief together with VAT
remaining at 5% for a period before stepping up to 12.5%. As with
2020, support from HM Treasury was essential for hospitality
businesses the length and breadth of the country, with Adnams being
no exception. In 2020 we were closed or operating under restriction
for 280 days, in 2021 that number reduced to 220 days.
In 2021, the business generated turnover of GBP58m, an EBITDA of
GBP2.6m and an operating loss of GBP0.9m. Net debt at GBP11m
increased in line with expectations over the previous year as we
paid down prior year HMRC commitments, restocked following closure,
undertook maintenance in our pubs and reduced government support as
we reopened. Given large parts of the business were closed or
operating under restrictions for 31 weeks of the year this is
considered a creditable performance. The company traded well and
was cash generative once restrictions really began to be removed
from 17th May. The business undoubtedly benefited from foreign
travel restrictions and was well positioned to take advantage of
more people choosing to holiday in the UK. Beer and spirit volumes
in the on-trade took longer to re-establish themselves as free
trade customers and pubcos were understandably cautious about
overstocking whilst there was still uncertainty related to the
pandemic and the potential for further restrictions to be imposed.
Beer and spirits volumes remained largely flat with 2020 and relate
to similar trading patterns in both years.
Our development of technology has enabled us to control costs
well in the year and the premium nature of the Adnams brand has
enabled us to improve profit margins. Given the strong trading
position throughout the summer and our confidence in the Adnams
brand, the Board decided in January 2022 to pay an interim dividend
to reward shareholders who have loyally supported the company
through the pandemic. As the company continues to recover from the
crisis and rebuild its balance sheet, this payment should be viewed
as a one-off. Whilst the company wants to return quickly to a more
normal cycle of paying a final and interim dividend, it cannot yet
be precise around when this might happen although the Board will
keep the situation under continual review.
Concurrent with paying the interim dividend, the company is
repaying staff who took reductions in pay during the pandemic. I am
proud to say that the company is also a living wage employer, as
the cost of living crises disproportionately affects those on lower
pay. Our belief is that, in addition to being entirely the right
thing to do, paying the living wage creates a virtuous circle with
our colleagues demonstrating greater loyalty and commitment to
Adnams over the long term.
Once again, I was delighted to see how our customers adapted to
multiple changes to government restrictions as the year progressed
and people enjoyed our pubs and hotels with good cheer and a
generosity of spirit towards our frontline colleagues. The loyalty
and support of our customers throughout the pandemic has been vital
and I would like to take this opportunity to record my heartfelt
thanks to them. It was 1872 when my great grandfather Ernest and
his brother George made their way across southern England, arriving
in Southwold to found the modern-day Adnams. 2022 therefore
represents our 150th anniversary. Added to this, Broadside is 50
years old and we celebrate 30 years of our relationship with
Bitburger.
All this in the Platinum Jubilee year for Her Majesty The Queen,
meaning there is much to look forward to. We plan a number of
events throughout the year and, as you would expect, some
celebratory products. All of this will be communicated more fully
on our website as the year progresses, so watch this space.
As we moved into 2022 we were looking forward to the future with
optimism. However, as I write this statement, a dramatic event is
unfolding in Ukraine which besides being a catalyst for a
humanitarian crisis has the potential to disrupt commodity markets
around the world. Our thoughts are with the Ukrainian people at
this time and Adnams will do what it can to support agencies who
will be mobilising to provide relief to those affected. Returning
to the company, it has invested significantly in upgrading its back
office systems in the recent past and is implementing a greater
level of technology to serve our customers better. Early this year
we implemented a new checkout system in our stores that enables
colleagues to check out customers from anywhere in the store via a
mobile device; the system also integrates with our website and
enables us to have one view of the customer across the business. We
have also implemented a new website that enables us to improve the
user experience, share our stories and grow online sales still
further.
Throughout this whole uncertain period, Adnams values will guide
our response towards our customers, staff, shareholders and the
communities we operate within. Adnams aspires to be a model company
that can be relied upon to do the right thing and I hope we have
demonstrated that in 2021.
On behalf of the Board I would like to thank shareholders for
the continued support.
Jonathan Adnams OBE
Chairman
Adnams plc profit and loss account
For the year ended 31 December
2021 2020
GBP000 GBP000
--------- ---------
Turnover 57,368 50,661
--------- ---------
Other operating income 1,938 3,196
--------- ---------
Operating expenses (60,204) (57,599)
--------- ---------
Operating loss before highlighted items (898) (3,742)
--------- ---------
Highlighted items - operating expenses - (90)
--------- ---------
Operating loss (898) (3,832)
--------- ---------
Loss on disposal of assets (4) -
--------- ---------
Loss before interest and taxation (902) (3,832)
--------- ---------
Interest payable (352) (355)
--------- ---------
Other finance charge on pension scheme (134) (117)
--------- ---------
Loss before taxation (1,388) (4,304)
--------- ---------
Tax on loss on ordinary activities (254) 521
--------- ---------
Loss (1,642) (3,783)
--------- ---------
Earnings per share basic and diluted
--------- ---------
'A' Shares of 25p each (87.1)p (206.8)p
--------- ---------
'B' Shares of GBP1 each (348.3)p (827.2)p
--------- ---------
Balance sheet
As at 31 December
2021 2020
GBP000 GBP000
--------- ---------
Tangible fixed assets 38,913 40,816
--------- ---------
Current assets
--------- ---------
Stocks 9,779 8,719
--------- ---------
Debtors 4,202 3,562
--------- ---------
Cash at bank and in hand 1 435
--------- ---------
13,982 12,716
--------- ---------
Creditors: amounts falling due within
one year (13,439) (11,923)
--------- ---------
Net current assets 543 793
--------- ---------
Total assets less current liabilities 39,456 41,609
--------- ---------
Creditors: amounts falling due after
more than one year (9,867) (10,199)
--------- ---------
Provision for liabilities (623) -
--------- ---------
(10,490) (10,199)
--------- ---------
Net assets excluding pension liability 28,966 31,410
--------- ---------
Pension liability (4,988) (11,198)
--------- ---------
Net assets including pension liability 23,978 20,212
--------- ---------
Capital and reserves
--------- ---------
Called-up share capital 472 472
--------- ---------
Share premium 144 144
--------- ---------
Profit and loss account 23,362 19,596
--------- ---------
Equity shareholders' funds 23,978 20,212
--------- ---------
The Directors have not recommended a final dividend for the
financial year ending 31 December 2021, as was the case for
2020.
The information contained in the above profit and loss account
and balance sheet has been extracted from the audited accounts of
Adnams PLC for the year ended 31 December 2021. The statement
preceding the profit and loss account is unaudited.
A trading update will be released on 12(th) May 2022.
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END
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