Yahoo Finance Ghost Ship producer Adnams reports bigger loss amid question mark over its future
Strong demand for beer helped Adnams, one of the oldest names in British brewing, report a slight uptick in sales for the 12 months to 31 December, but the company still posted a large loss.
The brewer, which is best known for its Ghost Ship, Broadside and Southwold beers, reported a three per cent increase in sales for the period with revenue rising to £66.3m from £64.2m.
Overall beer volumes rose three per cent in the second half of 2023 and 11 per cent in the first quarter of 2024.
Off-trade sales led growth, with sales up 14 per cent year-on-year “supported by new national listings with several major retailers.”
The group’s Ghost Ship 0.5 per cent has been one of the best-performing drinks and is now, according to Adnams, the UK’s “number one low or no alcohol pale ale.” The volume of the ale sold in the period rose 12.4 per cent.
However, the group, which also owns a range of hotels, reported an operating loss of £2.5m and a loss before tax of £4m. Both figures were materially worse than the £1.2m and £2.3m reported last year.
Net bank debt increased to £15.9m at the end of the period from £13.9m at the end of 2022.
Andy Wood, chief executive officer of Adnams said: “As we continue to pursue our strategy, it’s important that we leverage our distinctive strengths – as a heritage-rich, innovative company – to their fullest. The Adnams brand continues to hold significant equity and is championed and cherished by its customers.
He added: “The coming months will see the company undergo further change as it is positioned for further growth. This change is likely to result in a simplified operating model that encompasses the things the business does well, whilst reducing its borrowings, susceptibility to economic shocks and building greater resilience.”
The 134-year-old brewery hit the headlines earlier this year when it was reported that the group had begun contacting prospective investors and buyers to help shore up its finances.
Alongside the results, the company said it was “continuing to explore a range of options to fund its future growth plans with the support of its advisors and has received an encouraging response to the process.”
It added: “The board’s preferred option remains the raising of additional capital from another party and/or the sale of freehold assets to return capital to the company, however no decision has yet been taken.”
