Adnams, the Suffolk-based brewer and pub retailer, has this morning unveiled a 27% slump in profit before tax of £641,000 for the first half of 2010, down from £882,000 the year before. It said the first six months of 2010 had seen “some very tough trading conditions”, particularly in the on-trade, as it revealed a marginal decline in turnover, down £23.3m in the same period in 2009 to £23.1m. The group also admitted it had seen a mixed experience at its Cellar & Kitchen stores. Its operating profit dropped to £826,000 for the first half of the year, down from £922,000 the year before. The Southwold-based group said that volumes of its own brewed products were down by 6.8%, against an industry down by –9.1%. In a statement Jonathan Adnams, chairman, said: “The beer and pub industry continues to be under considerable pressure both politically and economically. The change in government will no doubt lead to some changes in approach.” He added: “There is no doubt that the beer industry is going through tough times, with strong competition and declining demand. The economy is in a highly uncertain state. "We know that cutbacks are happening and will continue, we know that VAT will increase; we do not know whether this will presage a revival or a renewed decline. “Adnams prides itself on its long-term focus. We have built a reputation for doing the right thing, we are continuing to invest and build and we believe that this will bring us success, whatever the challenges we may face.” The company said it had reduced its bank debt from £12.9m at the start of the year to £12.1m at its interim point. It sold one pub during the six-month period – the Horse & dray in Norwich. Adnams reported an unchanged dividend of 65p per B share and 16.25p per A share.