Brewer and pub operator, Adnams has announced financials for 2014 with operating profit growing by 15% to £3.8m on the back of a 9% increase in turnover to £66m.
Chairman Jonathan Adnams OBE (pictured) commented, 'I am very pleased to be reporting a strong year for Adnams in 2014. Sales of our own beer reached their highest ever levels at over 95,000 barrels (over 27 million pints) and at the same time our debt levels fell by £2.7 million to £8.0 million. We are recommending a 6.25% increase in our final dividend.'
Adnams’ own brewed volumes reached their highest ever level in 2014 in a very tough market, which whilst it showed modest growth, also has its largest ever number of
competitor brewers at around 1,500. The vast majority of these producers pay duty at reduced rates and it is now estimated that recipients of duty relief brew over 45% of UK cask ale, up from 15% in 2004.
The spirits business continues to perform well. Volumes were up by 37% on the prior year which was ahead of the company's expectations.
Income from pubs was down on the previous year, though like-for-like trading in the core estate was slightly ahead. The decline came as a result of pub sales and higher costs at a small number of under-performing pubs. Six pubs were sold in 2014 and further pub sales are planned for this year.