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Chapel Down Group Plc

('CDG' or 'the Company')






Chairman's Report


I am delighted to announce another period of progress in the results for the year ended 31 December 2019.


Key highlights:

   -- Year on year sales on a continuing basis up 14% to GBP14.801m (2018: 
          -- Chapel Down Wine and Spirits sales on a continuing basis up 13% to 
             GBP10.102m (2018: GBP8.977m) 
          -- Beer and Cider sales, in Curious Drinks Limited, up 16% to 
             GBP4.699m (2018: GBP4.039m)*** 
   -- Wines and Spirits gross profit on a continuing basis up 8% at GBP3.920m 
      (2018: GBP3.626m) 
   -- Beer and Cider gross profit (in Curious Drinks Limited) up 16% at 
      GBP1.431m (2018: GBP1.229m) 
   -- EBITDA on a continuing basis was a loss of (GBP0.862m) (2018: loss of 
      (GBP0.155m))*/**** as we continue to reinvest in our brands, 
      infrastructure and supply 
   -- The loss before tax on continuing operations was a loss of (GBP2.094m) 
      (2018: loss of (GBP0.850m)) 
   -- The extraordinary harvest in 2018 has enabled us to increase stocks by 
      40% to GBP10.719m (2018: GBP7.680m) 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's Coty 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 commercial brews on 24 June 2019 and full brewing capacity 
      available from Q4 
   -- Stop Press - Curious Brewery won UK Brewer of the Year 2019 

* For the years ended 31 December 2016 and 2017 Curious Drinks Limited was accounted for as an associate company in the consolidated financial statements. Following changes during 2018 in the composition of the board of Curious Drinks Limited and a significant increase in funding from Chapel Down Group Plc, Financial Reporting Standard 102 requires us to report Curious Drinks Limited as a subsidiary in the consolidated accounts of Chapel Down Group Plc from 30 January 2018. In the comparative period Curious Drinks Limited was an associate for January 2018 and a subsidiary for 1 February 2018 to 31 December 2018. To enable a like for like comparison table 1 in the performance review section of the Chief Executive's commentary shows the turnover and gross profit as if Curious Drinks Limited had been a subsidiary for the entirety of 2018.


** Includes 12 months of Beer and Cider sales for Curious Drinks Limited for both periods.


*** In April 2016 Curious Drinks Ltd raised GBP1.736m for a 9.79% economic share and a 50.21% share of the voting rights in the business. The sale resulted in Chapel Down Group PLC retaining a 49.79% voting share and a 90.21% economic share of Curious Drinks Ltd.


**** Excludes the effect of the FRS 102 Section 26 share option accounting adjustment of GBP43k (2018: GBP57k) which is a non-cash item.


Chapel Down has always been singularly focused on building strong differentiated and valuable brands. We believe that they will deliver a more sustainable long term profitable business. Chapel Down operates in attractive growth sectors -- English wine, craft spirits and contemporary beers and cider with good growth potential both in the UK and abroad. We have built a portfolio of attractive innovative brands with premium positioning supported by well executed marketing, strong distribution and visibility, high profile sponsorships, attractive experiential brand homes and serving a loyal and growing customer base of shareholders, brand advocates and fans. In a challenging environment, we believe those assets are vital to our long term success. Whilst we all wish for a speedy return to normality, and in particular a healthy pub, bar and restaurant trade, there is still much uncertainty.


Now, more than ever we should support British brands and companies that can help re-build our economy and grow employment. Those that succeed will not compromise on quality and value. That is why I believe that despite the current crisis, Chapel Down is in an exciting position to thrive. We are a young British company with a rapidly growing customer-centric business. We make and sell market-leading brands increasingly online but also to retailers who want truly World class products, great service and great value.


2019 was another busy year. We took in another substantial harvest of good quality fruit which will make high quality premium wines. We planted a further 154 acres of perfect chalk down land in Kent with vines which will yield around 250,000 bottles of world class sparkling wine a year. We continued to grow the sales of our wines, spirits and beers and won yet further critical acclaim for our wines, spirits and beer with some remarkable awards. However, the development of our Chapel Down Gin Works in Kings Cross was not the commercial success we had anticipated and so, despite giving consumers a great experience, we decided to close the operation at the end of December. Our brewery in Ashford, became finally operational in June and fully productive in Q4. It has attracted great reviews and the beer is excellent. Indeed, so good that it won "UK Brewer of the Year" in 2019. Sadly, the current crisis has forced us to mothball the operation as we are heavily skewed to supplying the on-trade. It's heart-breaking to stop after just a few months of operation. Nevertheless, we are currently in good shape to weather the storms of change with strong brands and a more sizeable wine business in the off-trade and in e-commerce. The future looks exciting, albeit with the prospect of high short term volatility, as we see the rise in importance of the membership economy, online sales, British products and sourcing, trusted premium brands along with a solid asset base.


We will continue to make substantial investments over the coming years in planting more vineyards, developing our winery, improving our commercial and online infrastructure, hiring and training the best talent and creating smarter and more effective marketing to ensure that we build the strongest quality brands and are therefore best placed for future growth and any industry consolidation.


Our assets are supportive of the business: land -- and high quality vined land in particular -- continues to appreciate, our brand assets are more valuable than ever and our balance sheet is strong.


It has been my privilege to Chair the Board for the last six years. We enjoy the custom and support of our many shareholders who tell the Chapel Down story with energy and enthusiasm. On a personal note, I am delighted that Chapel Down has attracted a new Chairman of the calibre of Martin Glenn who will make a great contribution in supporting our inspirational management team to further success. Thank you for your continued faith, for your excitement, your encouragement and your support.

John Dunsmore




Chief Executive's Commentary


The past few months have been extremely challenging for everyone, but Chapel Down is in much better shape to weather these extraordinary times, with strong brands, broad distribution, experienced and nimble management and a rapidly growing online business. So despite our on-trade business disappearing in March, the strength of our brands has allowed us to accelerate our online sales and our off-trade sales rapidly. Indeed the success of our online business since the lockdown has seen order volumes grow a staggering 16-fold and we see this element of our business as a major growth area and will invest accordingly.


That we have been able to do so, is because your Company has continued to invest in its brands, its assets and its people to build a healthier, more sustainable and innovative drinks company with a really exciting future both at home and abroad in 2019. Despite the challenges of the current pandemic, we are in a very positive place and ready to continue growing our business and brands in the months and years ahead. The market for English wine is continuing to grow fuelled by rising quality, growing awareness, growing support for local and British products and broader accessibility.


Turning to 2019, we achieved sales growth on a continuing basis of 14% in the Group (up 13% on wine and spirits and up 16% on beer and cider), despite the challenges of supply problems with beer and a late opening of the brewery, and limits on the volume of sparkling wine available for sale. Chapel Down is proud of its nine years of 21% strong compound revenue growth and we are continuing to develop - even in these challenging times. We have aspirations to be a serious player in growth markets. In the UK we are the leading brand of English wine. We also continue to see growing demand for English sparkling wines in sophisticated international markets. We enjoyed our third full year in the USA, and growth is limited only by our production. Nevertheless, our key market remains the UK and our challenge remains to service and engage with all our customers so well that we turn growing awareness and desire for Chapel Down and Curious into profitable sales through a broad church of distribution channels.


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We were blessed with another excellent harvest in 2019 following the bumper 2018 vintage. Average yields were 70% higher than our 5 year average. This will enable us to drive our sparkling wine growth with more confidence knowing that our growing reserve stocks will see us through tougher harvests. We launched our innovative new Sparkling Bacchus in 2019 which has enabled us to reach new consumers at an attractive price point and premiumise our Bacchus fruit. It has been a rapid commercial success. Whilst focussed on gaining new consumers, we never lose sight of the importance of ensuring Josh Donaghy-Spire and his team create wines of improving quality. With an extraordinary haul of International Platinum Gold Medals and Trophies in 2019, we are surprising and delighting more wine lovers than ever. Our brand home at Tenterden combined with our Bluewater pop-up saw sales increase by 11% as visitor numbers improved thanks to improved awareness and range.


We enjoyed another successful year for our gin and vodka which use the skins of our grapes to create a real point of difference in a crowded market. The proposition has received widespread critical acclaim with the liquid picking up Double Gold in the Spirits Masters and the bottle design receiving a prestigious D&AD award. Like most new product launches in the premium category it has been aimed at the premium on-trade market. We created a new brand experience home at Kings Cross, but sadly that did not prove to be commercially sustainable for us and -- despite giving consumers a great experience -- we took the difficult decision to close it at the end of 2019. The lease on the site at Kings Cross has been surrendered and the full investment written down in the year resulting in an exceptional charge of GBP1.247m in 2019. The Gin Works loss of (GBP2.192m) including the exceptional charge is reflected in the discontinued operations in the 2019 results.


Our beer and cider performance has been steady as we finished the construction of our own brewery in Ashford. This award winning facility opened to the public in May 2019 and was an immediate hit with consumers as a much needed venue in Kent. The first completely Ashford brewed beers became available in September 2019. We continued to manage our growth through a focus on premium accounts -- top end restaurants, bars, hotels and premium on-trade such as Mitchells & Butlers. Indeed, we were surprised and delighted to win "UK Brewer of the Year 2019" after such a short time. Sadly, the impact of the current pandemic on the on-trade has meant that we had to take the difficult decision to "mothball" the brewery whilst we sell through existing stocks.


Performance Review


The combined business on a continuing basis continued to grow in sales and gross profit of both Wine and Spirits and Beer and Cider in 2019:

              Wines and Spirits -- 
               Continued Operations        Beer and Cider              Combined Businesses 
              FY       FY       %age       FY       FY       %age      FY       FY       %age 
               2019     2018     Variance   2019     2018    Variance   2019     2018     Variance 
              GBP'000  GBP'000             GBP'000  GBP'000            GBP'000  GBP'000 
Turnover      10,102   8,977    +13%       4,699    4,039    +16%      14,801   13,016   +14% 
Gross profit  3,920    3,626    +8%        1,431    1,229    +16%      5,351    4,855    +10% 
Gross profit 
 %age         39%      40%                 30%      30%                36%      37% 

We continue to reinvest in our people, our systems and our brands. The total business reported an EBITDA loss on a continuing basis of (GBP0.862m) compared with (GBP0.155m)**** in the year to December 2018.


The loss before tax on continuing operations was a loss of (GBP2.094m) (2018: loss of (GBP0.850m)) and the loss before tax including discontinued operations was (GBP4.285m) (2018: loss of (GBP0.850m)).


Wines and Spirits


Wines and Spirits sales on a continuing basis grew 13% to GBP10.102m (2018: GBP8.977m). The spirits grew by 37% to GBP1,065k (2018: GBP777k). Wine volumes were 16% ahead reflecting the higher volumes of still wine available from the 2018 harvest, although revenues were only 8% above prior year, reflecting a lower sparkling wine stock availability in 2019. 2020 will see more substantial growth in sparkling volumes when the sparkling wines from the 2018 harvest come on stream.


The genesis of a new wine region does not happen often. Being at the forefront of that is very exciting. Our sparkling wines continue to set the standard for the industry, offering outstanding quality and value at every price tier. The addition of our new Sparkling Bacchus has bridged an important gap in pricing. We will manage the sales of these wines to ensure we can build reserve stock to enable us to manage our customers and our growth, whatever the weather brings us. With more international accolades and very strong demand from a consumer seeking something more interesting and distinctive than Champagne, we are confident in our plans to increase the acreage of our vineyards. Our still wines (which are more individual vintage dependent, but much of which can be released in the year following vintage) have also been winning international accolades and wide critical acclaim particularly at the premium end. With higher brand awareness than other English wines, we continue to see strong demand and excellent sell through.


We can only make great wine if the quality of the fruit is excellent. We are improving the quality of the wines we make through the management of our own vineyards and the spread of good practice with our partner vineyards.


In the winery, better fruit is made into the best possible wine through the expertise of a young winemaking team using the latest technology and equipment. Ensuring we remain at the forefront of consumers' minds requires the team to innovate and challenge. That feeds a constant stream of exciting news about the Company and its brands and engages consumers.


We will continue to invest in creating further high quality supply from the best sites we can find. We planted a further 154 acres in 2019 taking the total acreage planted on long term leased land to 428 acres since 2015. We now have 789 acres of vineyard planted from which to source our fruit. This acreage will be fully productive from 2024 and in an average year it should be producing some 2.0m bottles of wine. In addition, we expect that there will be more opportunities to acquire fruit from the growing number of vineyards attracted to this growing market. We will continue to invest in further capacity and equipment to enhance efficiency and quality in the winery over the coming years, improving our systems and processes as well as building a world class brand and team.


Chapel Down will continue to fuel the growth in the English wine market, interest in which shows no signs of abating and we are preparing for the future. We remain appropriately optimistic about continuing growth in sales in 2020.


Beer and Cider


Beer and cider sales in Curious Drinks Ltd rose 16% to GBP4.699m.


Our strategy in 2019 was to grow by focussing on top end restaurants, bars, hotels and premium off-trade -- while we completed the construction of our new brewery. We have national distribution through Majestic and Waitrose in the off-trade and a network of wholesalers including Matthew Clark that enable us to supply Curious beers to the on-trade. We supplied Mitchells & Butlers, Greene King, Ei Group and Fullers as well as several exciting up and coming premium UK on-trade groups. Sadly, that market has disappeared since Covid. The on-trade will be very different when it re-opens and we believe that the need for premium brands will be even greater.


We have a unique and distinctive consumer proposition -- a winemaker's beer -- which is rare in a highly competitive beer market. The brand was enhanced by the opening of the new brewery and visitor facility in Ashford just 38 minutes from St Pancras International.


The custom-built brewhouse enables us to produce more fresher beer. We have developed unique experiential and product partnerships, launching our Curiouser & Curiouser small batch series in collaboration with Wild Beer Co, Fourpure Brewing Co and Beavertown. We were delighted to win "UK Brewer of the Year 2019".


Business risks and uncertainties


Covid-19 continues to pose significant challenges to all businesses associated with hospitality and leisure, although it has kick-started e-commerce rapidly. We have mitigated our risk through taking advantage of the Government backed furlough scheme, mothballing our brewery until there is more certainty about the future of the UK on-trade, developing our e-commerce business to scale at pace to compensate for on-trade revenue losses and building our off-trade business. Covid-19 also poses some risk to the availability of labour for the harvest. We are preparing alternative harvest labour plans and also extended machine harvesting trials on still wine varietals.


Brexit has had no significant impact on our business to date. In an area of full employment, we may be affected if we were not able to continue to access EU or other foreign workers for our viticulture and to mitigate that risk we will be looking at trialling the latest mechanical picking technology in 2020. However, we believe that maintaining and developing a strong brand and building a team of very high quality people are our best defence and we will continue to invest wisely to ensure we are best placed and risk is minimised.


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There is a risk of a poor grape harvest through extreme weather events which we mitigate through maintaining the highest standards of viticulture, choosing the very best sites and utilising the latest proven advances in technology and agriculture. We source from a wide geographic area to minimise micro-climatic variations that can blight individual sites. We also mitigate the risk to future growth by building our wine stock. The diversification into beer and spirits also further protects our ability to continue to grow. The risk of a poor hop harvest also exists and the group mitigates this risk by buying forward contracts on its key hops.


Competition continues to grow but we continue to invest in our people, brands and distribution to ensure that the business can continue to thrive.




Today's environment is tough. We know we need to be fit to survive and thrive.


We know we are lucky to work in a great British industry and an exciting business. Our drinks tell a story. They are delicious. They are a reason to get together.


We are passionate about growing our congregation -- introducing uniquely delicious products to enlightened consumers everywhere.


We are on a pilgrimage to get drinkers to fall in love with our brands so we can share their most special moments with them. We will be doing that increasingly online and more visibly with our retail partners. We want them to feel part of our journey too.


We think there is little point in just simply trying to be the best. That's simply not good enough anymore. We try to be the only people who can do what we do.


And finally -- to all our stakeholders -- thank-you!


Thanks for coming on this journey with us. Thanks for using your shareholder benefits to get great discounts on our wines, beers and spirits and for wholeheartedly supporting our online sales in which we will continue to invest to improve and build the experience. Thanks for your energy and your support. Thanks for your faith and belief.

Frazer Thompson


Chief Executive Officer


****Excludes the effect of the FRS 102 Section 26 share option accounting adjustment of GBP43k (2018: GBP57k) which is a non-cash item. Refer to note 1 "Basis of preparation/accounting policies" for further information.



Chapel Down Group plc 
 Frazer Thompson          Chief Executive 
 Richard Woodhouse         Finance Director      01580 763 033 
finnCap Ltd 
 Christopher               Corporate Finance      020 7220 0500 
 Raggett/Simon Hicks       ECM 
 Tim Redfern 

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2.



                  Audited         Audited 
                  Continuing      Discontinued 
                  Operations      Operations 
                  01.01.19 to     01.01.19 to     Audited Total   Audited Total 
                  31.12.19        31.12.19        2019 GBP        2018 GBP 
                  1               2               3               4 
Turnover          14,800,569      1,311,368       16,111,937      12,863,428 
Cost of sales     (9,449,449)     (303,288)       (9,752,737)     (8,065,725) 
                  --------------  --------------  --------------  -------------- 
Gross profit      5,351,120       1,008,080       6,359,200       4,797,703 
 expenses         (7,205,832)     (1,952,361)     (9,158,193)     (5,574,326) 
 expenses         (42,532)        (1,247,237)     (1,289,769)     (57,161) 
                  --------------  --------------  --------------  -------------- 
 (loss)/profit    (1,897,244)     (2,191,518)     (4,088,762)     (833,784) 
Income from 
 interests        -               -               -               (47,873) 
 receivable and 
 similar income   22,581          -               22,581          63,183 
Interest payable 
 and expenses     (218,910)       -               (218,910)       (31,854) 
                  --------------  --------------  --------------  -------------- 
 before tax       (2,093,573)     (2,191,518)     (4,285,091)     (850,328) 
Tax on 
 (loss)/profit    157,906         -               157,906         (63,250) 
                  --------------  --------------  --------------  -------------- 
 for the 
 financial year   (1,935,667)     (2,191,518)     (4,127,185)     (913,578) 
                  =========       =========       =========       ========= 
Loss for the 
 interests        (1,477,053)     -               (1,477,053)     (747,066) 
Owners of the 
 parent company   (458,614)       (2,191,518)     (2,650,132)     (166,512) 
                  --------------  --------------  --------------  -------------- 
                  (1,935,667)     (2,191,518)     (4,127,185)     (913,578) 
Adjusted EBIDTA 
 (loss)/profit    ( 1,897,244)    (2,191,518)     (4,088,762)     (833,784) 
Share based 
 payment          42,532          -               42,532          57,161 
Depreciation and 
 amortisation     993,138         569,808         1,562,946       621,227 
 costs            -               1,247,237       1,247,237       - 
                  --------------  --------------  --------------  -------------- 
EBITDA excluding 
 share based 
 payment          (861,574)       (374,473)       (1,236,047)     (155,396) 
                  =========       =========       =========       ========= 
 per share -- 
 (pence)                                          (1.85)          (0.12) 

There was no other comprehensive income for 2019 (2018 - GBPNil).



   1. Represents the consolidated audited results for Chapel Down Group Company, 
      English Wines Plc and Curious Drinks Limited for the period 01 January 
      2019 to 31 December 2019, excluding the Gin Works restaurant and bar for 
      the period 01 January 2019 to 31 December 2019 which is reported 
      separately under discontinued operations 
   2. Represents the discontinued operations being the Gin Works Restaurant & 
      Bar for the period 01 January 2019 to 31 December 2019 
   3. Represents the consolidated audited results for Chapel Down Group Company, 
      English Wines Plc and Curious Drinks Limited for the period 01 January 
      2019 to 31 December 2019 
   4. Represents the consolidated audited results for Chapel Down Group Company, 
      English Wines Plc for the period 01 January to 31 December 2018 and 
      Curious Drinks Limited for the period 31 January 2018 to 31 December 2018 
      and the share of loss from Curious Drinks Limited, for the period 01 
      January 2018 to 30 January 2018 


                                                2019            2018 
                                                 GBP             GBP 
Fixed assets 
Intangible assets                               108,712         126,380 
Tangible assets                                 27,578,539      18,515,540 
                                                --------------  -------------- 
                                                27,687,251      18,641,920 
Current assets 
Stocks                                          10,719,361      7,679,702 
Debtors due within one year                     3,368,387       3,610,758 
Cash at bank and in hand                        2,473,457       12,829,910 
                                                --------------  -------------- 
                                                16,561,205      24,120,370 
Creditors: amounts falling due within one year  (12,755,963)    (7,496,467) 
                                                --------------  -------------- 
Net current assets                              3,805,242       16,623,903 
                                                --------------  -------------- 
Total assets less current liabilities           31,492,493      35,265,823 
Creditors: amounts falling due after more than 
 one year                                       (17,934)        (23,815) 
Provisions for liabilities 
Deferred tax                                    (111,527)       (224,778) 
                                                --------------  -------------- 
Net assets                                      31,363,032      35,017,230 
                                                =========       ========= 
Capital and reserves 
Called up share capital                         7,211,129       7,073,473 
Share premium account                           26,105,728      25,812,929 
Capital redemption reserve                      400             - 
Revaluation reserve                             1,067,390       1,106,021 
Non-controlling Interests                       (1,731,977)     (254,924) 
Profit and loss account                         (1,289,638)     1,279,731 
                                                --------------  -------------- 
                                                31,363,032      35,017,230 
                                                =========       ========= 

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                                                2019            2018 
                                                 GBP             GBP 
Cash flows from operating activities 
(Loss)/profit for the financial year            (4,127,185)     (913,578) 
Adjustments for: 
Amortisation of intangible assets               17,668          16,948 
Depreciation of tangible fixed assets           1,545,278       604,279 
Fixed asset impairment                          1,347,564       - 
Loss on disposal of tangible assets             2,011           - 
Share of operating loss in associate            -               47,873 
Share based payments                            42,532          57,161 
Interest payable                                218,910         31,854 
Interest receivable                             (22,581)        (63,183) 
Taxation charge                                 (157,906)       63,250 
(Increase) in stocks                            (3,039,659)     (2,502,658) 
Decrease/(Increase) in debtors                  242,371         (934,529) 
Increase in creditors                           1,153,084       483,044 
Corporation tax (paid)                          (85,214)        (26,014) 
                                                --------------  -------------- 
Net cash generated from operating activities    (2,863,127)     (3,135,553) 
                                                --------------  -------------- 
Cash flows from investing activities 
Purchase of intangible assets                   -               (37,200) 
Purchase of tangible fixed assets               (11,981,602)    (8,366,485) 
Purchase of tangible fixed assets               23,750 
Cash acquired on consolidation of Curious 
 Drinks Limited                                 -               1,554,559 
Interest received                               22,581          60,072 
Interest received from associate undertaking    -               3,111 
                                                --------------  -------------- 
Net cash from investing activities              (11,935,271)    (6,785,943) 
                                                --------------  -------------- 
Cash flows from financing activities 
Issue of shares                                 430,855         1,466,612 
New secured bank loans                          4,230,000       3,570,000 
Repayment of bank loans                         -               (1,969,937) 
Interest paid                                   (218,910)       (31,854) 
                                                --------------  -------------- 
Net cash used in financing activities           4,441,945       3,034,821 
                                                --------------  -------------- 
Net (decrease)/increase in cash and cash 
 equivalents                                    (10,356,453)    (6,886,675) 
Cash and cash equivalents at beginning of year  12,829,910      19,716,585 
                                                --------------  -------------- 
Cash and cash equivalents at the end of year    2,473,457       12,829,910 
                                                =========       ========= 
Cash and cash equivalents at the end of year 
Cash at bank and in hand                        2,473,457       12,829,910 
                                                --------------  -------------- 
                                                2,473,457       12,829,910 
                                                =========       ========= 



The Company's report for the year ended 31 December 2019 was authorised for issue by the directors on 19 June 2020. The financial information does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. Accordingly, this report is to be read in conjunction with the Annual Report for the year ended 31 December 2019, which was prepared in accordance with the Company's reporting standard (FRS102) that was in effect at that time.


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 GBP42,532 (2018: GBP57,161) resulting in a Group pre-tax loss of GBP4,285,091 (2018: pre-tax loss of GBP850,328).


The Company is required to value net assets in accordance with the Company's reporting standard (UK GAAP). The assets (wine stock, land, vineyard) are held at cost which the Directors believe is considerably less than the realisable value.


The statutory accounts for the year ended 31 December 2019, prepared under UK GAAP, have been reported on by the Company's auditors, received an unqualified audit report and will be posted to shareholders on 22nd June 2020.




The net asset value of the Company as at 31st December 2019 was GBP31,363,032 which includes:


-- Fixed assets of GBP27,687,251 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 the Boxley vineyards which is capitalised at cost.


-- GBP10,719,361 of stock is valued at cost being the lower of cost or net realisable value.




The calculation of the loss per share for the year ended 31 December 2019 is based on the loss for the period of GBP2,650,132 and the weighted average number of shares in issue during the period of 143,042,033.




Copies of this statement will be available for collection free of charge from the Company's registered office at Chapel Down Winery, Small Hythe Road, Tenterden TN30 7NG. An electronic version will be available on the Company's website,


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Chapel Down Group plc

    SOURCE: Chapel Down Group plc 
Copyright Business Wire 2020 

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