DJ Adnams PLC Trading update & AGM arrangements
RNS Number : 7464O
04 June 2020
Trading update and AGM arrangements
The supply of beer to pubs, and the running of our own pubs, has been at the core of the Adnams business for many years. The requirement, in March, for UK pubs to close has inevitably had an enormous impact. The need to safeguard customers and staff led us to close all but two of our operations. The exceptions were sales through our website and sales to shops and supermarkets (our "Take Home" business). Our web and Take Home businesses comprised around 20% of our 2019 turnover. Temporary closure of our other operations has meant that we have needed to place around 90% of our staff on the government's Job Retention Scheme.
Despite these hugely challenging circumstances we have been tremendously grateful for the continuing support of our staff and our customers. Our web sales have been many times their prior year levels and Take Home volumes are also substantially ahead. This cannot compensate for the loss of our other businesses, but we know we are reaching many new customers, which presents us with future opportunities.
The logistical challenges of being able to open pubs safely and profitably remains a huge issue for many outlets. The support from government schemes, notably the Job Retention (or furlough) Scheme, has been tremendously important and it is vital that these schemes evolve in a way that continues to provide support whilst pubs progress back towards sustainability. Adnams has an excellent group of tenants and lessees and we have been very encouraged by their positivity and support during this period. Adnams has taken the decision to waive rent from tenants whilst pubs have needed to be closed, we believe that this has been the right thing to do in the long term interests of the Company and its tenants.
Our refinancing plans with Barclays have been on hold since the Covid-19 crisis started. Barclays remain very supportive and our existing longer-term facilities have been extended by a further six months and their maturity remains at over a year as at 30(th) June, our forthcoming half year reporting date. We are in discussions with Barclays as to whether future facilities are best provided through their normal financing terms or through the government-backed Coronavirus Large Business Interruption Loan Scheme (CLBILS).
Our half year result will inevitably show a substantial loss, but we are working hard to maximise the opportunities from our current situation and to prepare our business for reopening, with our shops progressively reopening during the first half of June.
In more normal times Adnams would have held its AGM at the end of April and updated shareholders on trading performance. We are very keen to meet our shareholders and had hoped to do so at the revised AGM date of 30(th) June. It appears however that a large gathering at that date is likely to remain impractical and rather than seek to defer the AGM further, we plan to hold a closed meeting on our premises in Southwold on 30(th) June to pass the necessary resolutions. Unfortunately, shareholders will not be able to attend this meeting and the necessary quorum will be provided by the Company.
Ahead of the meeting we would ask you to return the enclosed proxy form. Any questions that you may have should be sent by post with the proxy form or by using the email address email@example.com. We will collate questions and post a Q&A document on our website after the AGM. We will also seek to hold one or more shareholder meetings as soon as this becomes practical. Shareholders will be aware that we have for some years held shareholder open days and we plan to continue to do so when our business fully reopens.
Shareholders will notice that an additional resolution has been added since we first planned our AGM in April. We announced last month that Jenny Hanlon would be joining us as Chief Financial Officer on 15(th) June to take over from Stephen Pugh, who is retiring. The additional resolution asks shareholders to confirm her appointment. Jenny is a proven CFO with extensive experience across many sectors. Further details on her background can be found in our 4(th) May announcement available on the AQSE (formerly NEX Exchange) website.
Shareholder Discount Cards
The 2020/21 cards would normally have been sent out by this point in the year. We plan to circulate these later this year and 2019/20 cards remain valid until this happens.
We remain optimistic that Adnams will pull through these difficult times and thrive in the future environment. Our staff have shown great commitment, as have our suppliers and customers and we have worked closely with our local community and the wider environment helping each other through the crisis. We appreciate the tremendous support that our shareholders have always shown, and we look forward to seeing you again in easier times.
Jonathan Adnams OBE, Chairman
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(END) Dow Jones Newswires
June 04, 2020 02:00 ET (06:00 GMT)