Brewer and hospitality firm Adnams reported a slowdown in sales during the first half of the year, following the disposal of several of its pubs and amidst continued pressure on consumer spending. The company's group revenue fell by 8.9 percent to £27.4 million for the six months ending June 30.
This downturn in trade for its managed pubs and hotels occurred after Adnams sold five of its tenanted pubs earlier in the year, a move made in response to what the company described as 'extremely challenging market conditions.' The 154-year-old brewery has faced significant headwinds in recent years, compounded by rising costs such as higher National Insurance contributions and increased minimum wage rates, which have hindered its recovery efforts.
Despite these challenges, Adnams ended 2025 with debts reduced to £9.2 million from £15.3 million, though overall revenue was £4.3 million lower than the previous year. Chair Simon Townsend acknowledged the business's resilience in the face of subdued trading conditions and consumer spending pressures. The company reported implementing cost-cutting measures, reducing operating expenses by over £2 million during the period, which helped to offset some of the impact on profitability. Adnams recorded a pre-tax loss of £1.42 million in the first half, a slight improvement from a £1.47 million loss in the same period the prior year.
Signs of recovery began to emerge over the summer months. Warmer weather and the World Cup contributed to an uptick in pub and hotel sales, with like-for-like sales growth reaching 3.3 percent in July, and profits increasing by 10 percent. Direct-to-consumer sales, particularly through supermarkets, demonstrated greater resilience, outperforming the wider beer market as Adnams focused on its Ghost Ship brands.