Chapel Down, the wine maker, has raised £4.35m in new funding for expansion as it reports a halving of EBITDA to £145k in the six months to 30 June.
The company blamed the EBITDA fall on the fact it had to rein back wine growth to ensure to maintained supply to key customers after a poor harvest. This meant some “difficult choices” to prioritise accounts with the best customer profile, sustainable prices and have demonstrated long-term support.
The lack of stock led to a 31% fall in wine volumes, although this translated into just a 6% decline in overall sales, Chapel Down said.
“A 9% increase in average selling price (ex-duty and VAT) and a 191% increase in the sales of Curious Beers contributed to this position.”
Chapel Down said year on year sales were on a par with last year.
Turnover decreased to £2.01m with a gross profit of £755k. “The Board is pleased with this performance given the circumstances,” it said.
Chairman Paul Brett said: “It has been an excellent half year for Chapel Down and significant highlights have been our ability to retain our most important clients, service all our critical accounts and listings, increase our beer sales and make further inroads in our export ambitions.
“In addition, we have raised £4.35m of new funding so that we can accelerate our growth plans. We are confident of a very bright and exciting future.”
