Chapel Down: Kent's growth winery eyes AIM listing following bumper crop
No reason to whine for Chapel Down...
IN DEPTH
Chapel Down goes from strength to strength and eyes future growth.
In the world of wine, Chapel Down has emerged as a shining star, steadily climbing the ranks as one of the UK's premier wine producers. With a history rooted in tradition, this Tenterden-based winemaker has been making waves in recent years, experiencing a meteoric rise in both popularity and financial success.
Chapel Down's journey began more than four decades ago when they planted their first vines in the picturesque Kent countryside. Over the years, the company has consistently demonstrated a commitment to producing top-quality wines, sparkling wines, and spirits. Their dedication to excellence, combined with a forward-thinking approach, has allowed them to flourish in a highly competitive industry.
In 2019, the company achieved a turnover of £14.801 million, accompanied by a commendable profit of £5.351 million. Fast forward to 2022, and the company's financials tell an even more impressive story. Chapel Down's turnover reached £17.745 million, reflecting a substantial increase over the past three years. Even more noteworthy is the gross profit of £8.535 million, which underscores their ability to not only generate revenue but also maintain healthy profit margins.
Chapel Down's aspirations do not stop at their current accomplishments. The company has set its sights on a bold and ambitious goal: to double the size of the Chapel Down business by 2026. This ambitious plan is a testament to their confidence in the brand and their vision for the future. The firm has been buoyed by a recent bumper crop following good weather in May and June this year. CEO Andrew Carter told media recently that the winery expects its 2023 vintage to be “of an exceptional quality” with a “record-breaking volume and yield.”
In a move that underscores their commitment to growth, Chapel Down is exploring the possibility of listing on the AIM (Alternative Investment Market), a sub-market of the London Stock Exchange. An AIM listing would provide Chapel Down with access to additional capital and enhanced visibility in the financial markets. This strategic decision reflects the company's long-term vision and belief in the strength of their brand. The firm is already listed on the Aquis Stock Exchange and has a market capitalisation of 65.29m.
Listing a company on AIM, the Alternative Investment Market, is an attractive option for several reasons. The regulatory requirements for AIM listing are often less stringent compared to the main market. Companies report results on a half-year basis rather than quarterly. AIM also provides enhanced visibility and liquidity for shares, potentially attracting a broader investor base. AIM can serve as a platform to increase a company's profile and credibility in the eyes of customers, partners, and other stakeholders, further contributing to long-term growth and success.
Another significant development in Chapel Down's journey is the recent approval for a new purpose-built winery at Highland Court Farm. This state-of-the-art facility will provide Chapel Down with increased capacity for wine production, ensuring that they can meet the growing demand for their products. This investment in infrastructure not only enhances their operational capabilities but also reinforces their commitment to producing exceptional wines and spirits. The aim is to ramp up production from 1.5 million bottles a year in 2022 to 9 million by 2032.
The story of Chapel Down is a remarkable tale of growth and success in the world of wine. From their humble beginnings to their current position as a leading UK wine producer, Chapel Down's journey is a testament to their dedication to quality, innovation, and ambitious goals. With their eyes set on doubling the size of their business by 2026, and the potential AIM listing on the horizon, Chapel Down's future looks as bright as their sparkling wines. As they continue to raise a glass to their achievements, wine enthusiasts and investors alike eagerly await the next chapter in this extraordinary success story.
FINAL THOUGHTS
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