TIDMGUS
RNS Number : 9304V
Gusbourne PLC
15 August 2022
15 August 2022
Gusbourne Plc
("Gusbourne", the "Company" or the "Group")
Trading update
Increase in debt facilities
Purchase of freehold land
Trading Update
Gusbourne Plc (AIM: GUS), the English sparkling wine producer,
provides the following trading update for the six months to 30 June
2022, ahead of announcement of its interim results.
Highlights:
-- Net revenue (1) for the six months ended 30 June 2022 is
expected to have more than doubled from the same period in 2021
with an increase of 108% over H1 2021 (2021: 63%). Net revenue
(unaudited) for the six months is expected to be GBP3.01m (2021:
GBP1.45 million and 2020: GBP0.89 million), which partly reflects a
significant recovery from the prior year effects of COVID-19 in H1
2021, particularly on UK Trade sales as well as the timing of
certain International sales.
-- Direct to consumer (DTC) sales are expected to have grown by
66% in H1 driven by online sales and cellar door operations in
Kent.
-- UK Trade sales are expected to have grown 128% as the sector
continued to recover from the prior year effects of COVID-19.
International sales also performed strongly with continuing sales
to Norway, USA and Japan as the largest customer destinations.
Increase of GBP6m in existing PNC asset-based lending
facilities
Gusbourne is today pleased to announce that its wholly owned
subsidiary, Gusbourne Estate Limited, has entered into an amended
and restated agreement with PNC Financial Services UK Limited
("PNC") to increase its existing GBP10.5 million 5-year asset-based
lending facilities by an additional GBP6 million to provide the
Company with a total GBP16.5 million asset-based lending facilities
at a competitive rate (the "New PNC Facilities"). The New PNC
facilities have been made available to the Company for a minimum
period of 5 years to 12 August 2027.
The New PNC Facilities are being provided on a revolving basis
and will be used to provide further working capital for the Company
covering inventory and accounts receivables, to support its growth
plans and allow flexible drawdown and repayments in line with the
Company's working capital requirements. The interest rate will be
at the annual rate of 2.50 per cent over the Bank of England Base
Rate. The facilities will be secured by way of first priority
charges over the Company's inventory, receivables and freehold
property as well as an all-assets debenture and contain financial
and general covenants and customary events of default. The
financial covenants include cash burn, fixed charge cover, capital
expenditure restrictions and minimum headroom levels, and are
tested monthly.
Purchase of Additional Freehold Land in Kent from a Related
Party
The Company is pleased to announce that it has exchanged
contracts with Andrew Weeber, Non-Executive Director and a
shareholder of the Company, and his spouse, to purchase 137 acres
of freehold agricultural land located in A ppledore, Ashford in
Kent (the "Land Purchase"). The agreed completion date is 24 August
2022. The property is adjacent to and contiguous with the Company's
existing freehold estate in Kent, where the majority of the
Company's existing mature vineyards are planted.
This will bring the total freehold acreage of land in Kent owned
by the Company to 489 acres. The purchase price for the Land
Purchase is GBP1.6 million in cash from existing cash resources
plus related acquisition costs. There are no profits attributable
to the land being acquired.
The Company has previously established the suitability of this
additional land for vines and intends to plant the majority of this
acreage with vines in May 2024, which will provide the required
lead time to order the appropriate vines and prepare the land for
planting. The additional wine production from grapes grown on these
new vineyards will help support the longer-term growth plans of the
Company.
The Land Purchase constitutes a related party transaction under
Rule 13 of the AIM Rules. The Directors of the Company (excluding
Andrew Weeber) consider, having consulted with Canaccord Genuity
Limited in its capacity as the Company's nominated adviser for the
purposes of the AIM Rules, that the terms of the Land Purchase to
be fair and reasonable insofar as the Company's shareholders are
concerned.
Charlie Holland, Chief Winemaker and Chief Executive Officer
commented:
"I am delighted to report strong sales growth for the first six
months of 2022, with net revenue more than double the same period
of 2021. We continue to enjoy strong demand for Gusbourne wines
driven by the continued expansion of our customer base, both in the
UK and internationally. It also reflects the luxury status and
reputation of the Gusbourne brand, the dynamic growth of the
English wine sector and the increasing demand for English
wines.
I am also delighted to report the increase of GBP6m in our
asset-based financing facilities from PNC which will provide
combined lending facilities of GBP16.5m for a further 5 years and
provide valued long term support for the Company's further growth
plans.
The additional freehold land in Kent, which I am very pleased
the Company has been able to acquire, will form a key part of our
production expansion plans over the coming years".
(1) Net revenue is revenue reported by the Company after excise
duties payable
For further information contact:
Gusbourne Plc
Charlie Holland +44 (0)1233 758 666
Canaccord Genuity Limited
(Nomad and Joint Broker)
Andrew Potts
Bobbie Hilliam
Georgina McCooke +44 (0 20 7523 8000
Panmure Gordon (UK) Limited
(Joint broker)
Oliver Cardigan
Hugh Rich
Ailsa MacMaster +44 (0 20 7886 2500
Note: This announcement and other press releases are available
to view at the Company's website: www.gusbourneplc.com
Note to Editors
Gusbourne produces and distributes a range of high quality and
award winning vintage English sparkling wines from grapes grown in
its own vineyards in Kent and West Sussex.
The Gusbourne business was founded by Andrew Weeber in 2004 with
the first vineyard plantings at Appledore in Kent. The first wines
were released in 2010 to critical acclaim. Following additional
vineyard plantings in 2013 and 2015 in both Kent and West Sussex,
Gusbourne now has 231 acres of mature vineyards. The NEST visitor
centre was opened next to the winery in Appledore in 2017,
providing tours, tastings and a direct outlet for our wines.
Right from the beginning, Gusbourne's intention has always been
to produce the finest English sparkling wines. Starting with
carefully chosen sites, we use best practice in establishing and
maintaining the vineyards and conduct green harvests to ensure we
achieve the highest quality grapes for each vintage. A quest for
excellence is at the heart of everything we do. We blind taste
hundreds of samples before finalising our blends and even after the
wines are bottled, they spend extended time on their lees to add
depth and flavour. Once disgorged, extra cork ageing further
enhances complexity. Our winemaking process remains traditional,
but one that is open to innovation where appropriate. It takes four
years to bring a vineyard into full production and a further four
years to transform those grapes into Gusbourne's premium sparkling
wine.
We are one of England's most awarded wine producers. Highlights
include:
-- Three times winner of the International Wine & Spirits
Challenge (IWSC) 'English Wine Producer of the Year', having won
the award in 2013, 2015 and 2017- a unique achievement
-- Back-to-back winner of 'Winery of the Year' at the WineGB Competition in 2021 and 2022
-- Trophies for 'Best English Still Red Wine', 'Best English
Still White Wine' and 'Best English Still Wine' at Wine GB awards
2022
-- Trophy for 'Best Vintage English Sparkling Wine' at the 2022 International Wine Challenge
-- Shortlisted for 'Best Sparkling Wine Producer' at the 2022
International Wine and Spirits Competition
-- Awarded 'Judges Selection' trophy at the Texsom 2020-2022
Gusbourne's luxury brand enjoys premium price positioning, and
its wines are distributed in some of the finest establishments both
in the UK and abroad. Our wines can be found in leading luxury
retailers, restaurants, hotels and stockists, always being aware
that where we are says a lot about who we are.
This announcement contains inside information for the purposes
of article 7 of the Market Abuse Regulation (EU) 596/2014 as
amended by regulation 11 of the Market Abuse (Amendment) (EU Exit)
Regulations 2019/310. With the publication of this announcement,
this information is now considered to be in the public domain.
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END
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