Adnams reduces workforce by 90%

Suffolk-based pubco and retailer Adnams has reduced staff to 10% of its normal levels to cut costs throughout the coronavirus pandemic.

Since the temporary closure of its 38 pubs and the majority of its shops, the brewer has limited its operations to supermarket supply and online or mail order sales only.

To maintain cashflow, its directors and senior team have taken a 50% pay cut, and the large majority of employees have been placed on furlough or reduced pay.

The company has also stopped all but essential revenue and capital spending, and has cancelled the 2019 final dividend.

“We continue to develop our detailed forecasts to help us to understand the constantly changing environment, however there is enormous uncertainty regarding the progress of Covid-19, the development of the government’s response and the effect on staff, customers and suppliers,” said Jonathan Adnams OBE, Adnams Chairman.

“The strategy of Adnams is to be a high-quality branded drinks producer and provider of top-quality customer experience in our property estate. Our commitment to this strategy remains constant and our beers, spirits and property remain testament to this commitment.”

“We have the infrastructure and we have the people to drive success and we will continue to keep our eyes on doing the right thing for the long term.”

As a result of extensive investment, turnover for the year end 31 December 2019 was down 5% to £74.7m, but Adnams EBITDA remained strong at £4.4m.

Its pub estate for the period increased operating profits by 5.5%.