UK: Poor weather holds back Adnams in 2010
- FY net profits down by 8.6% to GBP2.15m (US$3.5m)
- Sales slip by 0.78% to GBP50.9m
- Operating profits dip by 1.54% to GBP3.2m
- Beer volumes “in line with a falling market”
Adnams has highlighted the poor weather in the UK last year as hampering its FY performance
Adnams has posted a set of sliding figures for a “very tough” 2010, but warned that 2011 “may see tougher times”.
The UK-based brewer and pub operator said today (30 March) that net profits in the 12 months of last year came in 8.6% down on 2009, reaching GBP2.15m (US$3.5m). Sales were flat, slipping by 0.78% to GBP50.9m, while operating profits dipped by 1.5% to GBP3.2m.
While weather conditions in Adnam's East Anglia heartland had been favourable in 2009, both halves of 2010 suffered from poor weather, with heavy snows at the start of the first half and the end of the second.
“I am pleased to report an operating profit of GBP3.19m, which, whilst slightly below 2009's GBP3.24m, shows a strong second half, given that our operating profit was 10% behind 2009 at the half-year,” said Adnams' chairman, Jonathan Adnams.
“2010 was a steady year for the economy as a whole, but it looks as though we may see tougher times in 2011, starting with the VAT increase to 20% at the beginning of the year and with the prospect of substantial public sector cutbacks.”
A final dividend of GBP1.22, unchanged from last year, will be paid to Adnams' shareholders.
Also in the results announcement, Adnams stated that it started distilling gins and vodkas in October for sale in November last year, while its first whiskey will be available from November 2013. “There is clearly a trend towards localism in food and drink and we believe that small scale distilling will prove very attractive,” the company said.
For the official release, click here.
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