Chapel Down, the UK wine group, is preparing to list on the country’s Alternative Investment Market (AIM).
The business, which is listed on the smaller Aquis Stock Exchange, wants to broaden its potential pool of investors.
AIM is a sub-market of the London Stock Exchange for smaller businesses. It claims to help “founders and entrepreneurs fulfil their growth ambitions and potential”.
Chapel Down said the switch “is expected to occur on or around 7 December 2023”.
Andrew Carter, Chapel Down’s CEO, said the planned move “reflects the maturity of the business and the ambitious growth plan we are committed to delivering in the years ahead”.
Carter added: “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.”
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In 2021, Chapel Down’s net sales revenue stood at £14.3m ($17.5m).
During the six months to the end of June this year, the company generated net sales revenue of £8.4m, up 21% on the corresponding period a year earlier. Wine volumes rose 6% to 721,000 bottles, it reported.
Chapel Down booked a half-year operating profit of £685,000, 27% higher than the first six months of its previous financial year. It made a profit for the period of £618,000, versus £489,000 a year before.
In 2022, the group’s net sales revenue was up 10% at £15.6m. Volumes fell 10%. Operating profit grew 51% to £1.7m. Profit for the period from continuing operations was £1.1m, against £1.4m a year earlier.
Alongside the news of the plans to shift Chapel Down’s listing to AIM, the company gave an update on its 2023 harvest. It reported an 86% jump in tonnage to 3,811 tonnes of grapes. Central to Chapel Down’s strategy is a focus on “higher-margin, award-winning sparkling wines”. It said around 80% of the grapes harvested are for those types of wine.
The business said the tonnage is expected to enable it to produce 3.4m bottles of sparkling and still wines.