28th Oct 2024 07:44
Chapel Down Group PLC - Tenterden, Kent-based wine maker - Shares slide on Friday, as Chapel Down ends its strategic review with a decision to remain independent and warns that poor weather in southern England in the early autumn will hurt the 2024 grape harvest. Chapel Down says it "evaluated a number of opportunities" since announcing the strategic review in June, but none "that would create superior long-term shareholder value than Chapel Down remaining a stand-alone AIM listed company". Therefore, the company is no longer in an offer period.
Chapel Down, known for its sparkling wine, said it has nearly completed its 2024 grape harvest. The yield will be below the "exceptional" 2023 harvest and its five-year average. While growing conditions started well, with no spring frost damage and warm summer weather, September and October brought "more difficult" weather. Chapel Down expects to harvest 1,875 tonnes of grapes this year, down from 3,811 in 2023 and 2,050 in 2022. From this, it expects to create 1.7 million bottles of wine.
Turning to sales, Chapel Down says 2024 net sales are expected to show a low single-digit percentage decline compared to 2023. It expects a positive trading profit, but one that is below 2023; however a fair value loss on biological produce, plus costs of the strategic review, mean it will report a pretax loss.
Current stock price: 41.60 pence, down 12% in London on Friday
12-month change: down 24%
By Tom Waite, Alliance News editor
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