Chapel Down Group Admit to Trading on AIM

Singer Capital Markets is delighted to have acted as Nominated Adviser & Broker to Chapel Down Group plc (‘CDGP.LN’) on their successful admission to AIM.

Chapel Down is England’s leading and largest wine producer with an award-winning range of sparkling and still wines, under the Chapel Down brand. Chapel Down has a consistent track record of delivering profitable growth, with an 80% increase in net sales revenue to £15.6 million between FY19 and FY22.

In addition, the Group has retained a strong balance sheet through its current investment phase, ending FY22 with net cash of £3.3 million and a currently undrawn £12.0 million revolving credit facility (“RCF”) providing additional liquidity. In the six months to 30 June 2023, the Company reported year-on-year NSR growth of 21% to £8.4 million with EBITDA growth of 36% to £1.2 million, tracking ahead of sales, as a result of on-going scale efficiencies and a focused premiumisation strategy. The Board also re-confirmed its expectation to deliver double digit NSR growth and sustained margins in FY23.

The Company is on track and fully funded to deliver on its plan to double the size of its business between 2021 and 2026 which will strengthen Chapel Down’s position as England’s leading and largest winemaker, driven by a re-focus of the business on wine, in particular sparkling wine, and investment in consumer and customer marketing, to support the premiumisation of the Chapel Down business and brand.

As previously announced, the Company’s next phase of growth incorporates plans for a new purpose-built winery, which the Company expects to be operational in time for the 2026 harvest, subject to final planning approval being granted. The Company will continue to explore opportunities to secure new acreage and develop an expanded tourism offering at the Tenterden brand home in order to accelerate future growth. To capitalise on its medium-term growth opportunity, the Company is in advanced discussions to extend and increase its existing RCF, to be drawn when required as part of the overall mix of funding for its investment plans.

Andrew Carter, Chief Executive Officer of Chapel Down, commented:

“We are pleased to announce Chapel Down’s admission to trading on AIM, a move which reflects the maturity of the business and the ambitious growth plan we are committed to delivering in the years ahead. Chapel Down has greatly benefitted from its AQSE listing over the past 20 years as it has grown from a start-up in an embryonic industry into England’s leading and largest winemaker with a consistent track record of profitable growth.”

“We believe that a move to AIM will attract a wider pool of investors to participate in Chapel Down’s growth as the leading producer in the world’s newest global wine region and as we continue to pursue our well progressed and fully funded plan to double the size of the business in the five years to 2026. In November we confirmed a record 2023 harvest, with tonnage 86% higher than 2022 and 75% higher than the previous record posted in 2018, which is creating great excitement within our business, and will underpin our strategic ambition to double the size of the business by 2026 as we continue to build Chapel Down’s position as England’s number one and most celebrated winemaker.”

About Chapel Down Group plc

Chapel Down is England’s leading and largest wine producer with an award-winning range of sparkling and still wines, under the Chapel Down brand. The Company owns, leases and sources from 1,023 acres of vineyards in South East England, of which 750 acres are fully productive, making it the largest wine producer in the UK. The Company sold 1.4 million bottles of wine in 2022, generating revenue from off-trade, on-trade, export, and direct to consumer e-commerce and retail sales.

The Company continues to build its status as the leading brand of the English wine industry, with awareness of 37% as at June 2023, supported by its partnerships (including with the England and Wales Cricket Board and Ascot Racecourse) and events. The Company also welcomes approximately 60,000 visitors a year for winery tours and tastings at its brand home and retail experience in Tenterden, Kent.

Ticker: CDGP
Market Cap: £87 million*
Website: Click here

*As at 07/12/2023