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Adnams PLC on Thursday reported increased revenue and a narrowed loss as the hospitality industry continues its post-Covid recovery.
The Southwold, England-based brewer and pub operator reported a pretax loss of £1.0 million in the six months to June 30, narrowed from £3.3 million a year before.
Adnams reported a 47% increase in revenue to £30.1 million in the six months to June 30 from £20.5 million the year before.
The company's managed estate, including hotels and pubs with rooms, have performed well during the ‘staycation phenomenon’ while its retail business continues to make ‘good progress’.
Adnams noted that customers in rural and coastal pubs are visiting much earlier and consequently go home much earlier than before the Covid-19 pandemic. Pubs are much quieter in the evenings and visits are even more weighted towards the end of week and weekends. This leads to some pubs still operating restricted opening hours.
Adnam's outlook for the full year remains cautious. The company is a relatively large consumer of energy, water and raw materials in the manufacturing business and, like others across the industry, it is seeing upward pressure on global energy and cereal prices, packaging and fuel costs and interest rates.
The company paid an interim dividend in February of 156 pence per 'B' share and 39p per 'A' share in recognition of what it called its strong trading in the spring and summer of the previous year. The company did not pay a final dividend in 2019 and paid no dividends in 2020 and 2021.
Chair Jonathan Adnams said: ‘The first half of 2022 [was] a period of stabilisation and consolidation of our position following two years of disrupted trading.’
Shares in Adnams was traded on Thursday on AQSE at 8,700 pence. It has a market capitalisation of £25.6 million.
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