(`CDG' or `the Company')
EPIC: CDGP
- Year on year combined sales up 21% to £6.744m (2018: £5.563m)*
-
Chapel Down Wine and Spirits sales up 19% to £4.748m (2018: £3.981m)
-
Beer and Cider sales, in
Curious Drinks Limited , up 15% to £1.996m (2018: £1.735m)*
-
Wines and Spirits gross profit up 26% at £1.973m (2018: £1.572m)
-
Beer and Cider gross profit (in
Curious Drinks Limited ) up 25% at £0.680m (2018: £0.545m)
- EBITDA loss of £1.032m (2018: loss of £0.230m)** as we continue to invest in our brands, infrastructure and supply
- The extraordinary harvest in 2018 has enabled us to increase stocks by 37% to £8.256m (2018: £6.008m) reflecting the substantially higher levels of sparkling stock
-
A Platinum medal and “Best in Show” at The Decanter World Wine 2019 Awards for our Kit’s
Coty Coeur de Cuvee 2014 and our Kit’s Coty Chardonnay 2016 along with Golds for both wines at The International Wine Challenge 2019 Awards. Our Kit’sCoty Bacchus 2017 also won a Platinum medal at The Decanter World Wine 2019 Awards
-
Additional 154 acres of new vineyards planted on outstanding chalk terroir on the North Downs in
Kent close to our Kit’s Coty vineyard
- Our Bacchus Gin won Gold at The Gin Masters 2019 and our Chardonnay Vodka a Gold in The Vodka Masters 2019 in addition to the D&AD packaging award.
-
Brewery build completed and opened to the public from
10 May 2019 with first trial brews commenced on 19 June and first commercial brews on24 June 2019 with full brewing capacity available from Q4
-
Stop Press -Curious Brewery wonUK Brewer of the Year 2019
* For the years ended
** Excludes the effect of the FRS 102 Section 26 share option accounting adjustment of £23k (2018: £21k) which is a non-cash item.
“We operate in a highly competitive and challenging marketplace where change is a constant. We are seeing considerable change in grocery and off license retailing and the challenges on the
Our focus remains delivering solid top line growth at good margins whilst we continue to invest ahead to ensure we continue to build strong and sustainable brands that our consumers and customers love. Brands that are relevant with which they can engage and that provide memorable experiences. To help us do that, we have invested in creating a Gin Works at Kings Cross and a modern visitor experience at our new brewery to complement the existing Vineyard at Tenterden.
It is encouraging that interest in English wines – and
With demand for our wines continuing to exceed our ability to supply, we are greatly encouraged by the prospect of another outstanding harvest with excellent yields and high quality fruit. We have been planting more vines on truly exceptional land to help meet future demand. We planted a further 154 acres of new vineyards in
And that wine needs to be better than good. It needs to be great. So we were delighted to scoop two Best in Show trophies, three platinums, three golds, seven silvers and ten bronze medals in the three major international wine awards competitions (Decanter, International Wine and Spirit Challenge and International Wine Challenge) – a testament to our people, our investment and our relentless pursuit of excellence.
In a crowded marketplace, we have also been encouraged by the results of our
We have continued to invest ahead in our Curious beers and cider. We have completed the build of our iconic new brewery to great acclaim in the centre of Ashford, Kent. The new brewery will give us greater control over our growth and also bring improved margins and a highly visible point of difference. Sales growth has been frustrated by the loss of our contract brewing partner suddenly and the late completion of the brewing kit. Despite the disruption caused by this, the new brewery is a big and highly visible step forward in the brand’s journey. We are building a strong franchise for the beer in the South East and the recent news of being awarded Brewer of the Year 2019 is great news. It’s a tough environment and it is important that we continue to invest to ensure that the beer and cider are vital brands for our retail partners to enable them to premiumise their offering in a challenging on trade environment. It’s a differentiated product that tastes great and is worth paying a little more for than other lagers!
I am privileged to work with fantastic people – curious, fearless and relentless – but more importantly a great team. It’s the quality of those people, the excellence of our brands, the excitement of operating in growth markets and the support of an outstanding Board that makes us especially motivated about Chapel Down’s prospects for the future. The Company is changing gear as we build our brands and invest for the future.
We will continue to work to build a better business that excites consumers and investors. ”
Performance Review
The combined business continued to perform well in the first half of 2019, with growth in sales and gross profit of the combined businesses:
|
|
Beer and Cider |
Combined Businesses |
||||||
|
H1 2019 |
H1 2018 |
%age Variance |
H1 2019 |
H1 2018 |
%age Variance |
H1 2019 |
H1 2018 |
%age Variance |
|
£’000 |
£’000 |
|
£’000 |
£’000 |
|
£’000 |
£’000 |
|
Turnover |
4,748 |
3,981 |
+19% |
1,996 |
1,735 |
+15% |
6,744 |
5,716 |
+18% |
Gross profit |
1,973 |
1,572 |
+26% |
680 |
545 |
+25% |
2,653 |
2,117 |
+25% |
Gross profit %age |
42% |
39% |
|
34% |
31% |
|
39% |
37% |
|
We made a conscious decision to continue investing ahead in our people, our systems and our brands. As a consequence, the total business reported an EBITDA loss of £1.032m, compared with a loss of £0.230m in the six months to
Beer and cider margins have improved following the opening of the restaurant and retail outlet at the Brewery in Ashford.
Total tangible assets were £27,367,075 (H1 2018: £12,431,143) which reflects the development of the brewery and associated equipment, development of the Gin Works at King’s Cross and the planting and development of more vineyards.
Stocks increased by 37% to £8,256,441 (H1 2018: £6,008,393) reflecting the impact of the extraordinay 2018 harvest.
Included within Creditors falling due within one year are bank borrowings of £6,450,000 (H1 2018: £nil) which have enabled the development of the brewery building and the associated brewery kit. These borrowings will be converted to an agreed asset finance and mortgage facility with HSBC during the second half of the year.
The Group’s net tangible assets were £33,504,952 (H1 2018: £35,180,764) and represent 99.6% of total equity (H1 2018: 99.7%). Net tangible assets per share were £0.23 per share (2018 H1: £0.25 per share).
With a strong programme of sponsorships and support – The Boat Races,
Beer and Cider
Our activity has been focused on premium accounts and we see continuing progress in top end restaurants, bars, hotels and premium off-trade. We have national distribution through Majestic,
Beer and cider sales rose 15% to £1.996m in the first half. Gross profit rose by 25% due to the opening of the Brewery restaurant and retail outlet from 10 May.
We have experienced some commissioning and supply challenges as we have moved the brewing activity in-house, which has held back growth in the short term.
Outlook
We operate in three exciting markets – English wines, premium craft beer and premium gin/vodka. We expect all three markets to continue to out-perform the drinks industry. We will continue to invest and look to make the most of these opportunities over the coming years.
We have a growing experiential attraction at Tenterden, a newly opened brewery in Ashford, Kent only 38 minutes by train from our exciting new Gin Works in Kings Cross.
We are looking forward to another high volume and high quality harvest.
We have invested wisely in developing good brands and outstanding people.
We have a highly supportive Board to guide us and a small army of engaged and enthusiastic shareholders.
Thank you for your faith, your continued encouragement and your enthusiastic support. It makes a difference!
Contact
|
Chief Executive Finance Director |
01580 763 033 |
finnCap Ltd
|
Corporate Finance ECM |
020 7220 0500 |
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE 6 MONTHS TO 30TH
|
Unaudited 6 Months £ |
Unaudited 6 Months £ |
Audited 12 Months £ |
|
1 |
2 |
3 |
Turnover |
6,743,596 |
5,563,292 |
12,863,428 |
Cost of sales |
(4,090,825) |
(3,502,831) |
(8,065,725) |
|
-------------- |
-------------- |
-------------- |
Gross profit |
2,652,771 |
2,060,461 |
4,797,703 |
|
|
|
|
Administrative expenses |
(4,327,656) |
(2,585,441) |
(5,574,326) |
Share based payment |
(23,247) |
(21,093) |
(57,161) |
|
-------------- |
-------------- |
-------------- |
Operating (loss)/profit |
(1,698,132) |
(546,073) |
(833,784) |
|
|
|
|
Income from participating interests |
- |
(47,873) |
(47,873) |
Interest receivable and similar income |
19,151 |
22,809 |
63,183 |
Interest payable and expenses |
(92,551) |
(10,714) |
(31,854) |
|
-------------- |
-------------- |
-------------- |
(Loss)/profit before tax |
(1,771,532) |
(581,851) |
(850,328) |
|
|
|
|
Tax on (loss)/profit |
- |
- |
(63,250) |
|
-------------- |
-------------- |
-------------- |
(Loss)/profit for the financial year |
(1,771,532) |
(581,851) |
(913,578) |
|
========= |
========= |
========= |
Loss for the year attributable to: |
|
|
|
Non-controlling interests |
(564,779) |
(268,613) |
(747,066) |
Owners of the parent company |
(1,206,753) |
(313,238) |
(166,512) |
|
-------------- |
-------------- |
-------------- |
|
(1,771,532) |
(581,851) |
(913,578) |
|
|
|
|
Adjusted performance measures |
|
|
|
|
|
|
|
Adjusted EBIDTA |
|
|
|
Operating (loss)/profit |
(1,698,132) |
(546,073) |
(833,784) |
Share based payment |
23,247 |
21,093 |
57,161 |
Depreciation and amortisation |
643,179 |
294,955 |
621,227 |
|
-------------- |
-------------- |
-------------- |
EBITDA excluding share based payment |
(1,031,706) |
(230,025) |
(155,396) |
|
========= |
========= |
========= |
|
|
|
|
(Loss)/Profit per share – diluted (pence) |
(0.84) |
(0.21) |
(0.12) |
There was no other comprehensive income for the 6 months to
1. Represents the consolidated unaudited results for
2. Represents the restated consolidated unaudited results for
3. Represents the consolidated audited results for
CONSOLIDATED BALANCE SHEET FOR THE 6 MONTHS ENDED 30TH
|
Unaudited As At £ |
Unaudited As At £ |
Audited As At £ |
Fixed assets |
|
|
|
Intangible assets |
119,408 |
98,014 |
126,380 |
Tangible assets |
27,367,075 |
12,431,143 |
18,515,540 |
|
-------------- |
-------------- |
-------------- |
|
27,486,483 |
12,529,157 |
18,641,920 |
|
|
|
|
Current assets |
|
|
|
Stocks |
8,256,441 |
6,008,393 |
7,679,702 |
Debtors due within one year |
4,029,397 |
2,875,720 |
3,610,758 |
Cash at bank and in hand |
5,191,940 |
17,901,525 |
12,829,910 |
|
-------------- |
-------------- |
-------------- |
|
17,477,778 |
26,785,638 |
24,120,370 |
|
|
|
|
Creditors: amounts falling due within one year |
(11,102,485) |
(3,799,331) |
(7,496,467) |
|
-------------- |
-------------- |
-------------- |
Net current assets |
6,375,293 |
22,986,307 |
16,623,903 |
|
-------------- |
-------------- |
-------------- |
Total assets less current liabilities |
33,861,776 |
35,515,464 |
35,265,823 |
|
|
|
|
Creditors: amounts falling due after more than one year |
(12,638) |
(14,307) |
(23,815) |
|
|
|
|
Provisions for liabilities |
|
|
|
Deferred tax |
(224,778) |
(222,379) |
(224,778) |
|
-------------- |
-------------- |
-------------- |
Net assets |
33,624,360 |
35,278,778 |
35,017,230 |
|
========= |
========= |
========= |
|
|
|
|
Capital and reserves |
|
|
|
Called up share capital |
7,205,379 |
7,060,073 |
7,073,473 |
Share premium account |
26,036,438 |
25,792,216 |
25,812,929 |
Revaluation reserve |
1,086,706 |
1,125,336 |
1,106,021 |
Non-controlling Interests |
(819,703) |
223,529 |
(254,924) |
Profit and loss account |
115,540 |
1,077,624 |
1,279,731 |
|
-------------- |
-------------- |
-------------- |
|
33,624,360 |
35,278,778 |
35,017,230 |
|
========= |
========= |
========= |
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE 6 MONTHS ENDED 30TH
|
Unaudited 6 Months £ |
Unaudited 6 Months £ |
Audited 12 Months £ |
Cash flows from operating activities |
|
|
|
(Loss)/profit for the financial year |
(1,771,532) |
(581,851) |
(913,578) |
|
|
|
|
Adjustments for: |
|
|
|
Amortisation of intangible assets |
6,972 |
8,113 |
16,948 |
Depreciation of tangible fixed assets |
636,207 |
286,842 |
604,279 |
Disposal of tangible fixed assets |
526 |
- |
- |
Share of operating loss in associate |
- |
47,873 |
47,873 |
Share based payments |
23,247 |
21,093 |
57,161 |
Interest payable |
92,551 |
10,714 |
31,854 |
Interest receivable |
(19,151) |
(22,809) |
(63,183) |
Taxation charge |
- |
- |
63,250 |
(Increase)/decrease in stocks |
(576,739) |
(1,447,193) |
(2,502,658) |
(Increase)/decrease in debtors |
(418,639) |
(320,622) |
(934,529) |
Increase/(decrease) in creditors |
714,841 |
451,026 |
483,044 |
Corporation tax (paid) |
- |
- |
(26,014) |
|
-------------- |
-------------- |
-------------- |
Net cash generated from operating activities |
(1,311,717) |
(1,546,814) |
(3,135,553) |
|
-------------- |
-------------- |
-------------- |
|
|
|
|
Cash flows from investing activities |
|
|
|
Purchase of intangible assets |
- |
- |
(37,200) |
Purchase of tangible fixed assets |
(9,488,268) |
(1,297,463) |
(8,366,485) |
Cash acquired on consolidation of |
- |
1,554,559 |
1,554,559 |
Interest received |
19,151 |
19,698 |
60,072 |
Interest received from associate undertaking |
- |
3,111 |
3,111 |
|
-------------- |
-------------- |
-------------- |
Net cash from investing activities |
(9,469,117) |
279,905 |
(6,785,943) |
|
-------------- |
-------------- |
-------------- |
|
|
|
|
Cash flows from financing activities |
|
|
|
Issue of shares |
355,415 |
1,432,500 |
1,466,612 |
New secured bank loans |
2,880,000 |
- |
3,570,000 |
Repayment of bank loans |
- |
(1,969,937) |
(1,969,937) |
Interest paid |
(92,551) |
(10,714) |
(31,854) |
|
-------------- |
-------------- |
-------------- |
Net cash used in financing activities |
3,142,864 |
(548,151) |
3,034,821 |
|
-------------- |
-------------- |
-------------- |
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
(7,637,970) |
(1,815,060) |
(6,886,675) |
Cash and cash equivalents at beginning of year |
12,829,910 |
19,716,585 |
19,716,585 |
|
-------------- |
-------------- |
-------------- |
Cash and cash equivalents at the end of year |
5,191,940 |
17,901,525 |
12,829,910 |
|
========= |
========= |
========= |
|
|
|
|
Cash and cash equivalents at the end of year comprise: |
|
|
|
Cash at bank and in hand |
5,191,940 |
17,901,525 |
12,829,910 |
|
========= |
========= |
========= |
1. BASIS OF PREPARATION/ACCOUNTING POLICIES
The Company’s report for the 6 months ended
The accounting standard requires the Company to restate its profit to attribute a notional cost of non-cash share option agreements to the business. After adopting the standard, the accounts show a decrease in profit of £23,247 (2018: £21,093) resulting in a Group pre-tax loss of £1,771,532 (2018: pre-tax loss of £581,851).
The Company is required to value net assets in accordance with the Company’s reporting standard (
The statutory accounts for the year ended
2. BALANCE SHEET REVIEW
The net asset value of the Company as at
• Fixed assets of £27,486,483 includes the 2015 market value of the sites at Tenterden and Kit’s Coty as well as the vineyard development expenditure at Kit’s Coty and at
• £8,256,441 of stock is valued at cost being the lower of cost or net realisable value.
3. PROFIT PER SHARE
The calculation of the loss per share for the 6 months ended
4. DISTRIBUTION OF THE INTERIM STATEMENT
Copies of this statement will be available for collection free of charge from the Company’s registered office at
View source version on businesswire.com: https://www.businesswire.com/news/home/20190929005004/en/
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