Lakes Distillery considers £15 million stock flotation

English whisky distillery Lakes is considering listing its shares on the London Stock Exchange’s AIM as it seeks to raise £15 million to “significantly” expand production.

The distillery, which has appointed N+1 Singer as its nominated advisor and broker, is to hold a meeting later this month in which it will seek approval from its shareholders.

As well as single malt whisky, Lakes also produces gin, vodka, liqueurs and blended whisky.

It revealed that from 2019, £2 million worth of stock will be laid down annually with revenue having grown year-on-year, from £2.5 million in 2015 to £4.3 million achieved in 2017.

Lakes was founded in 2011 by COO Paul Currie and commenced operations in December 2014 with the aim of becoming a global luxury whisky brand.

Currie was joined by Nigel Mills, now CEO and co-founder in April 2012, and the pair have since appointed CFO David Robinson, formerly of Deloitte, and Dhavall Gandhi as chief whisky maker, who joined the company from Macallan.

Non-executive board members also include Dr Alan Rutherford, former production director at Diageo who was awarded an OBE for his services to the Scotch whisky industry in 1996; Tim Farazmand, former managing director of Lloyds Development Capital; Paul Neep, former CEO and chairman of Glenmorangie, and Richard Hutton, finance director of Greggs.

In a statement, the distillery said that its board contained members with “considerable and relevant expertise in producing high quality whisky, building a global luxury brand and growing a business to generate shareholder returns”.

Nigel Mills, CEO of The Lakes Distillery, commented: “The Lakes Distillery has strong brand credentials, is located in an area of outstanding natural beauty, the Lake District National Park, a UNESCO World Heritage site, and has a successful track record of innovation and brand development.

“We believe we are well positioned for growth, with multiple revenue streams, and an appreciating asset in the form of our whisky stock, developed using our multi-oak, multi-sherry led production process.

“We are exploring an IPO as a flexible source of capital to allow us to increase our production significantly, whilst remaining independent and focused on quality, as well as investing in our whisky stock, our sales and marketing capabilities and our distribution channels. Ultimately this will help us to achieve our ambition to build a global luxury whisky brand”.

The latest figures from HMRC reveal that a total of 49 new distilleries opened in the UK last year bringing the total to 315 and representing a 127% rise in five years. In 2003 there was one whisky distillery in England, now there are 21.

In recognition of the rise of English and Welsh whisky, the Wine and Spirit Trade Association (WSTA) launched a English and Welsh whisky trail to raise awareness of the category, which it said has “lay dormant for more than a century”.

In England, new-make spirit must be matured for a minimum of three years in wooden casks before it can legally be called ‘whisky’. As a result, it is common for whisky producers to make a gin and other spirits in order to generate revenue while the whisky matures.

Lakes is due to release its flagship single malt range in 2026 with is current range stocked in The Whisky Exchange, Booths, Tesco, Asda and Morrisons, as well as online on Amazon, Master of Malt and 31 Dover.