Profits and sales up at Chapel Down

Sales at English Wine producer Chapel Down rose 34% during 2015, according to results filed at Companies House, with profits also up.

Chapel Down’s CEO Frazer Thompson. Credit: Steve Burton photography

The Tenterden-based winery saw turnover rise £2.06m to £8.18m, in the 12 months to 31 December 2015, in a set of result which company CEO Frazer Thompson said showed the English wine producer was building a business for the long term.

Thompson said it had been an excellent year, as the company continued to build a strong brand and drive its top line without sacrificing margins.

Overall wine sales rose 27% as stock from 2013 and 2014 came on-stream and demand continued to grow, and beer sales also rose 50%.

“We are growing our supply while also investing in marketing, systems and people to stimulate sustainable, long-term demand,” he said.  “English wines  which are now being internationally recognised for their consistent excellence have been the bedrock of the business.”

Gross profits rose by over £1m, to £3.02m, up 36%, with adjusted EBITDA up 6% to £507k, and an adjusted pre-tax profit of £141k, compared to £132k the previous year. This included a share based payment of over £420k, a non-cash adjustment principally relating to accounting standards required to accelerate the non-cash cost due to the cancellation of share options.

Thompson said 2015 had been the second best harvest ever, while the company had invested £1.32m in planning 90 acres of new vineyard, as well as the purchase of further equipment to enhance it winemaking.

Curious Drinks is set to benefit from a £1.71m crowd-funding exercise, which will be used to develop the brand. “There is a vibrancy and excitement to the UK beer market, fuelled by spectacular success in the USA with I spreading internationally. With sales growth of 50% this year, Curious beers are extremely well positioned to benefit from the boom,” Thompson said.

In the last year, Chapel Down has boosted its team with the appointment of Mark Harvey as md of wines and Stewart Gilliland as chairman of Curious Drinks, with and Rachel Montague-Ebbs as a non-executive director.