Adnams has reported ‘positive’ first quarter trading, with total sales up 11% year-on-year in the three months ending 31 March 2024.

The Suffolk-based brewer and pub operator attributed sales growth to increasing volumes in beer and spirits, with a notably strong contribution from its on-trade and off-trade business.

While ‘multiple factors’ continue to challenge the sector, falling inflation improved demand in both the on- and off-trade, as well as softening cost pressures.

Adnams further confirmed it continues to explore options to fund its future growth plans with the support of its advisors and has received an ‘encouraging’ response to the process.

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.

No decision has yet been taken. The company will continue to keep shareholders appraised of developments.

Adnams intends to file full-year accounts for the period ending 31 December 2023 in late May, ahead of its planned AGM on 27 June.