Adnams is no longer pursuing a sale of its business to pay off its debts.
The brewer, which earlier this year appointed advisors to explore capital-raising options including a sale to private equity or a brewing peer, is to instead raise funds by selling off parts of its property portfolio.
Newly appointed CEO Jenny Hanlon told The Sunday Times none of the options available made sense for the Suffolk-based brewer.
“We didn’t really like what was brought to the table”, she said. “If you’re going to have this opportunity where Adnams is going to grow and expand, it needs to be off the back of something that strategically makes sense – not just a financial restructure.”
Adnams revenues in the 12 months to 31 December 2023 grew 3%, to £66.3m. However, higher operating costs and “increased borrowing costs” resulted in a full-year loss before tax of £4m, up from £2.3m in 2022.
Hanlon declined to say how much the brewer needed to pay down, but borrowing from Barclays peaked at more than £20m, The Sunday Times reported.
However, she said the brewer had elected to reduce its debt burden by selling assets, rather than bringing new funding into the business.
“You’d be amazed what companies like Adnams own,” she said. “There’s little pockets of properties here and there that actually were a luxury to have.”
Sales would also include a small number of Adnams pubs, Hanlon confirmed, adding the final number to be offloaded was yet to be determined.
“It’s a long, slow journey, but it’s one where we can be more in control,” she said.
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