Adnams back in black

The firm, which has been brewing ale at the Sole Bay Brewery in Southwold since 1872, reported profits of £882,000 for the first six months of 2009, having racked up losses of £148,000 in the same period last year.

Revenues were up almost 7% to £23.4 million.

Chairman Jonathan Adnams said he was "pleased" with the "much improved performance" having in January admitted that the firm was "heavily exposed" to the crisis facing the brewing industry as dozens of pubs close every week.

He said sales of cask beer were up 1% in the first half although overall sales of beer in pubs were down 5.3%.

Adnams was also wary of the future, saying: "It is clear that we face a period of considerable economic uncertainty.

"Whilst we have seen some revival after a gloomy start to 2009, it is quite possible that we will see another downturn in the not too distant future."

He added that the firm will "remain suitably cautious in the face of economic uncertainties" but at the same time look to exploit opportunites for expansion.

It bought its first new pubs for eight years in March — the Butt & Oyster in Pin Mill, the Maybush at Waldringfield and the Ship at Levington.

The firm, which has sponsorship deals with Ipswich Town FC and Newmarket racecourse, raised its dividend by 1.6%.

Sales at its Cellar & Kitchen stores were up 27%.