Adnam’s interim profits tumble by 27%

Suffolk-based brewer and pub company Adnams has struggled with a 27% fall in pre-tax profits to £641,000 for the half year to 30 June, it revealed today.

The company said it suffered a "very disappointing" fall in beer volumes, as turnover stayed flat at £23.1m.

Adnams said its own beer volumes fell by 6.8% in the half year, although it pointed to a 9.1% drop in the market overall. With that figure of 6.8%, the company saw 6% growth in its directly-delivered volumes, offset by declining lager volumes elsewhere, especially to its leased and tenanted pubs. Volumes in Bitburger lager climbed by 3.2%.

In a gloomy assessment, chairman Jonathan Adnams said: "There is no doubt that the beer industry is going through tough times, with strong competition and declining demand. The economy is in a highly uncertain state.

"We know that cutbacks are happening and will continue, we know that VAT will increase. We do not know whether this will presage a revival or a renewed decline."

Meanwhile the company's hotel arm suffered the effects of the cold winter, and Adnams admitted that it had had a "mixed experience" with its Cellar&Kitchen shops which sell wines and kitchenware.

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By Neil Gerrard

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