Leading Kent winemaker Chapel Down has seen its profits almost wiped out over the last six months.
In its latest financial figures for the period up to June 30, the Tenterden-based vineyard saw its pre-tax profits drop a startling 98% to £40,000. That compares to £2.4 million in 2023.
It said the “challenging” period was due to “one-off factors” in the off-trade and “a more difficult macro-economic environment”. Bosses remain confident of growth and building on its reputation as the county’s market leader.
The company announced earlier this year it was open to a sale in order to allow it to pursue its ambitious expansion plans.
It includes pushing ahead with plans for a new £32m winery near Canterbury – the subject of a recent legal battle.
Net sales revenue over the period fell by 11% on the previous year to £7.1m, while there were strong performances in its direct to consumer sales (up 23%) and on-trade (up 20%).
But the company, listed on London’s AIM (Alternative Investment Market), was hit hard by a 36% drop in off-trade performance (which includes supermarkets and online retailers) which it blames on “movement in retailers’ stock holdings”.
Net debt levels also rose to £5.8m (compared to £1.2m at the end of 2023) – a result of the planting of the 100 acre-plus Buckwell Vineyard, near Wye, and the costs of its 2023 harvest which saw Chapel Down produce a record number of grapes.
In a separate announcement, it was also confirmed Chapel Down’s chief executive, Andrew Carter, had resigned to take up a leadership role at a major beer brand.
He will stay in post, while a search for his successor begins, until the “first half of 2025”. At that point he will take up the CEO role at West Yorkshire brewer Timothy Taylor & Co.
Reflecting on the results, the outgoing CEO said: “Chapel Down’s vision is to be the leading and most celebrated English winemaker and I am proud of the team performance in the challenging trading environment we have faced in the first half of this year.
“As we continue to build our position as England’s largest winemaker, we remain at the forefront of the continued growth and development of the world’s newest global wine region.”
Martin Glenn, chair of Chapel Down, said of his impending departure: “Chapel Down has enjoyed huge success and celebrated several strategic milestones during Andrew’s time as chief executive and he should be very proud of what the business has achieved and the top team he has developed around him.
“I and the board have enjoyed working with Andrew immensely and wish him every success in his new role leading another iconic British brand.”