Adnams says first-half trading hit by tough drink industry conditions

Adnams PLC on Friday said it continued to face "challenging conditions" across both the hospitality and drinks sectors, but said trading showed signs of improvement entering the second half.

The Southwold, Suffolk-based brewer, hotelier and drinks company said pretax loss for the half-year ended June 30 narrowed 3.3% to £1.4 million from £1.5 million a year earlier.

Revenue fell 9.0% to £27.4 million from £30.1 million, primarily reflecting the disposal of some tenanted pubs completed during 2025. Excluding the impact of those disposals, Adnams said performance across most parts of the business was resilient despite pressure on consumer spending and subdued trading conditions early in the year.

Operating loss widened to £1.0 million from £678,000, despite operating expenses narrowing to £29.5 million from £31.6 million. Adnams attributed the reduction to "improvements in efficiency, overhead control and operational discipline across the business."

Exceptional costs fell to £223,000 from £1.2 million, while the company generated a £1.2 million gain on disposal of assets.

Interest payable also fell to £392,000 from £812,000 following a debt reduction programme.

Adnams said performance in its national wholesale channel was below expectations and "remains an area of focused recovery", with an experienced wholesale specialist appointed to improve performance and identify new growth opportunities.

Trading at managed pubs and hotels was also below expectations during the first half. Adnams said it responded with operational, commercial and labour management initiatives.

Looking ahead, the company said it was encouraged by early second-half results, with its managed estate delivering like-for-like revenue growth of 3.3% and profit growth of 10% in July. It attributed some of the improvement to an extended period of favourable weather and the football World Cup.

Adnams said its Swan Courtyard development in Southwold has produced encouraging early results and reinforced its confidence in selected investment projects.

The company is expanding its accommodation offering in Southwold by adding a two-bedroom apartment on Pinkney's Lane and a two-bedroom property on Church Street.

As in the previous year, the company did not recommend an interim dividend.

Shares were at 1,600.00 pence on the Aquis Stock Exchange in London.

Copyright 2026 Alliance News Ltd. All Rights Reserved.