REG - Artisanal Spirits Co - Preliminary Results
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RNS Number : 5917Y Artisanal Spirits Company PLC (The) 30 March 2026
The Artisanal Spirits Company plc
("The Artisanal Spirits Company", "ASC" or "the Group")
Preliminary Results for the year ended 31 December 2025
FY25 results in line, start to the year in line with expectations
The Artisanal Spirits Company (AIM: ART), the creator of outstanding,
limited-edition whiskies and experiences around the world, and owner of The
Scotch Malt Whisky Society ("SMWS"), Single Cask Nation ("SCN"), J.G. Thomson
and Artisan Casks, announces Preliminary Results for the year ended 31
December 2025 ("FY25").
Against a backdrop of subdued consumer demand due to global economic and
political uncertainty, ASC continued to make strategic progress and delivered
a mixed but resilient year-on-year performance across the Group,
notwithstanding the previously announced disruption caused by the US
government shut down and the strategic change to Route-To-Market (RTM) in the
US in Q4, which directly impacted revenue and EBITDA.
As a result, the Group delivered an adjusted EBITDA loss of £1.9m. This
reflects the impact of the US government shutdown and US RTM change which
resulted in an inability to complete anticipated US shipments in Q4 2025
equating to around £1.8m of EBITDA and also a provision for US stock expected
to be transferred to the SMWS America at the end of March from our current
3-tier partner of £0.8m. Excluding the Americas region, the Group saw a £0.4
million (c2%) decline in revenue.
From FY26, the US RTM will report in-market depletions as opposed to shipments
to the US further aligning revenue and cash and improving efficiency and speed
to market for new initiatives. Additionally, this change will generate cost
savings of c$1m (£0.75m) over three years.
£'m 12 months to 31 December 2025 Reported 12 months to 31 December 2025 Adjusted(1) 12 months to 31 December 2024 USA Government Shutdown Impact(2) USA Stock Transfer (3)
Revenue 19.9 19.9 23.6 (2.4) (1.1)
EBITDA (2.4) (1.9) 1.1 (1.8) (0.8)
Loss before tax (7.0) (6.5) (3.1) (1.8) (0.8)
( )
(1) Adjusted EBITDA defined as earnings before interest tax, depreciation,
amortisation and non-recurring costs. The non-recurring cost in the year being
the £0.5m operational expense in January 2025 with our previous partner to
take more direct management of the US RTM
(2) Anticipated impact of government shutdown - shipments bottled and planned
prior to closure which could not ship due to the inability to receive required
COLA approval to import
(3) Impact of stock to be transferred at the end of the contract with our
previous partner, at the end of March 2026, as we change our RTM partner in
the US market
Financial Headlines
· Continued effective revenue diversification, with revenue growth in
cask sales (+13%), Venues (+8%) and Single Cask Nation (+10%) mitigating a 25%
decline in Asia, where continued market and economic headwinds remain. The
Asian region for ASC is now around 50% of the size it was in 2022,
significantly impacted by economic headwinds in China over the period;
however, we remain well placed in the Asian market for when improvement in
market sentiment returns.
· Cost management and efficiencies delivered a further £0.3m of
recurring savings in the year (excluding the non-recurring US operational
expense of (£0.5m)) - notably marketing cost per acquisition down around 1/3
year in year delivering growth in recruitment from a lower spend.
· An organisational redesign completed in Q4 2025 will realise circa
£0.9m of gross savings in FY 2026.
· EBITDA loss of £2.4m (2024: £1.1m profit), being a loss of £1.9m at
an adjusted level reflecting the £0.5m operational expense in January 2025 as
part of the US RTM strategic change.
· Loss before tax of £7.0m (2024: (£3.1m)), primarily due to the US
operational impacts.
· Cask stock holding with NBV of £28.3m (2024: £27.8m), which when
independently appraised in July 2024 was valued at £102m and a 2026 bank
valuation, on average, of 200% of NBV.
· Successfully completed the RCF refinancing with Santander (September
2025), representing an increased facility of £13.5m at a 20bps lower headline
margin rate and no financial covenants, with a 4-year term.
£'m 12 months to 31 December 2025 12 months to 31 December 2024
Note
Revenue 6 19.9 23.6
Gross profit 11.3 15.0
Gross margin 57% 64%
EBITDA 7 (2.4) 1.1
Adj. EBITDA 7 (1.9) n/a
Loss before tax 7 (7.0) (3.1)
Loss after tax (7.2) (3.3)
Net Debt** (31.5) (25.5)
Cask inventory 15 28.3 27.8
Cask inventory valuation*** n/a 102.0
* Adjusted EBITDA defined as earnings before interest tax, depreciation,
amortisation and non-recurring costs
** Net debt defined as current and non-current financial liabilities less cash
and cash equivalents per the Statement of Financial Position, less interest
accrued on inventory financing.
*** Cask inventory valuation based on an independent valuation completed by
sector experts in July 2024.
Operational Headlines
· Underlying membership was maintained in the year: UK increased 1%,
offset by 1% decline in Asia; Growth in China and Japan of 2% and 5%
respectively, was offset by decline in Taiwan of 20%.
Global Membership
Dec 2025 Dec 2024 underlying* % Change Dec 2024 reported
Europe 24,700 24,400 1% 27,400
Americas 8,100 8,000 - 8,000
Asia 5,200 5,500 (1%) 5,500
Other 1,700 1,800 (1%) 1,800
Total 39,700 39,700 - 42,700
* Underlying membership excludes the c3,000 members who joined in Nov 24 on a
complimentary basis (where engagement has been exceptionally low)
· Product innovation continued at pace: Following the launch of the
Creators' Collection in 2024 and rapid expansion of our Heresy range, we
introduced our newly defined flavour profiles as part of our refreshed
Signature range in Q4 2025, enhancing the messaging and storytelling of the
range, and representing a unique and differentiated offering within the wider
whisky industry. Member engagement is strong with regard to innovations with a
number of bottlings selling out within hours or days.
· In July 2025 we unveiled our newest ASC brand 'Artisan Casks' - a new
luxury private cask programme, enabling private individuals the chance to
purchase an individual cask to appreciate and enjoy the artisanal nature of
whisky, with early achievement of sales in 2026 building on H2-25 delivery.
· We announced new franchise agreements in India and Vietnam, both of
which are in the top 15 Ultra-Premium Scotch Whisky markets for volume and
value (IWSR 2024), as we look to build a presence in those geographies.
· Another year of growth in our UK Venues, up 8%, further evidence of
our members valuing the in-person experience on offer in our SMWS UK members
rooms.
Current Trading/Post Period Highlights
· The start to the year has been solid, FY26 guidance remaining unchanged,
with trading in line with expectations. Cask sales growth alongside
year-on-year revenue improvements in Asia and America are offsetting a slower
start in Europe where consumer confidence remains subdued.
· The change to the US RTM, which will take effect from April 2026,
allows us to take more direct involvement in boosting member engagement and
brand awareness that will drive membership, revenue and EBITDA growth.
· The Group holds no direct exposure to the current conflict in the
Middle East, given we do not sell directly to any of those key geographies.
Any impact would be more indirect, relating to associated inflationary
pressures and consumer confidence.
Andrew Dane, CEO of Artisanal Spirits Company, commented:
"Despite persistent macroeconomic and complex geopolitical challenges, as well
as the previously announced US operational disruption at the end of the year,
ASC continues to manage the factors within its control well. We made good
strategic progress in 2025, demonstrating the strength of our brands, the
depth of our expertise and our ability to pivot and evolve.
"The operational platform we have in place, combined with our cost base
efficiency, more direct control over our US operations and increasingly
diversified revenue streams, positions us well to benefit as market conditions
improve. 2025 saw us further consolidate our presence in key Asian markets in
India and Vietnam, and SMWS continued to progress, underpinned by a loyal,
global membership base with around 70% member retention, demonstrating the
enduring appeal of our unique single cask and small batch spirits.
"Looking ahead, we continue to focus on delivering exceptional and unique
whisky, growing our membership and deepening member engagement. We will
continue to expand in international markets where the appreciation for premium
spirits and experiential brands is growing, as well as diversifying our
revenue portfolio, through the likes of Single Cask Nation and the growth in
trade cask sales to strengthen our future profit delivery.
"While mindful of near-term uncertainties, we remain confident in the strength
of our brands, assets, strategy and medium-term opportunity."
30 March 2026
Sellside analyst presentation
Andrew Dane, Chief Executive Officer, and Billy McCarter, Chief Financial
Officer, will host an in-person presentation for sellside equity analysts
today at 09.00 hours GMT.
Analysts wishing to join should register their interest by contacting:
artisanalspirts@teamlewis.com (mailto:artisanalspirts@teamlewis.com) .
A recording of the presentation will also be made available via the Group's
website later today.
Investor Meet Company presentation
Andrew Dane, Chief Executive Officer, and Billy McCarter, Chief Financial
Officer, will host a virtual presentation on Thursday 2 April at 10.30 hours
GMT.
Investors can sign up to Investor Meet Company for free and add to meet The
Artisanal Spirits Company via:
https://www.investormeetcompany.com/the-artisanal-spirits-company-plc/register-investor
(https://www.investormeetcompany.com/the-artisanal-spirits-company-plc/register-investor)
Investors who already follow The Artisanal Spirits Company on the Investor
Meet Company platform will automatically be invited.
For further enquiries:
The Artisanal Spirits Company plc https://artisanal-spirits.com/link/P3D5By
(https://artisanal-spirits.com/link/P3D5By)
Andrew Dane, Chief Executive Officer
Billy McCarter, Chief Financial Officer
Panmure Liberum Limited (Nominated Adviser and Broker)
Dru Danford Tel: +44 (0)20 3100 2222
Edward Thomas
John More
Team Lewis (Financial PR)
Justine Warren Tel: +44 (0)20 7802 2617 / 2634
Hannah Scott
About The Artisanal Spirits Company
ASC's purpose is to captivate a global community of whisky adventurers, by
creating and selling outstanding, limited-edition whiskies and experiences
around the world, with an ambition to create a high quality, highly profitable
and cash generative, premium global business.
Based in Edinburgh, ASC owns The Scotch Malt Whisky Society (SMWS), Single
Cask Nation (SCN), J.G.Thomson (JGT) and Artisan Casks. Owning over 18,000
casks primarily comprising Single Malt Scotch Whisky, ASC's stock includes
outstanding whisky (and other spirits) from 100 different distilleries across
20 countries which is sold to members both as individual bottles and whole
casks.
With an established global presence in some 30 countries, SMWS operates a
direct-to-consumer model (90% of revenue) primarily through e-commerce, in
addition to four member rooms in the UK. SMWS provides members with inspiring
experiences, content and exclusive access to a vast and unique range of
outstanding, expertly curated Scotch malt and other whiskies.
In January 2024, ASC acquired SCN which sources, curates and bottles
single-cask whiskies and other spirits selling both online and via traditional
retail channels to its following of over 10,000 whisky enthusiasts in the
USA.SCN also retails to key international whisky markets around the world.
Launched in the UK in late 2021, JGT has a focus on outstanding small batch
blended malt whiskies and other spirits, available both through
direct-to-consumer online sales and through traditional retail channels. The
award-winning brand has subsequently expanded into international markets.
In July 2025, ASC launched Artisan Casks, a luxury private cask programme
allowing private individuals the chance to purchase an individual cask of a
quality that allows for immediate bottling and joining a select network with a
discerning appreciation for finest craftsmanship and luxury experiences.
With proven e-commerce reach and a growing family of brands, ASC is building a
portfolio of limited-edition and small-batch whisky and other spirits brands
for a global movement of discerning consumers - predominantly from outside the
UK, with an expanding presence in the other key global whisky markets
including USA, China, Europe, Japan, Australia and Taiwan.
ASC has a substantial asset backing and is delivering profitable growth and
cash generation.
Chair's Statement
Introduction
2025 has been a mixed year for the Group, as we navigated a challenging
economic and political backdrop and initiated a significant change to our US
route-to-market.
Artisanal Spirits celebrated its 10th anniversary in March 2025 and as I
reflect on the past 12 months, I am encouraged that, in the face of
significant headwinds, the Group has continued to build on its Scotch Malt
Whisky Society (SMWS) foundations, achieving strategic progress, engaging the
40,000 members of the SMWS and spearheading award-winning innovation, whilst
remaining true to our core purpose of delivering exceptional whisky
experiences.
We recognise the frustration due to the full year profit downgrade caused by
the USA government shutdown which led to the cancellation of shipments to the
USA prior to Christmas. This issue did allow us to accelerate fundamental
changes to our USA route-to-market which incurred an additional, but smaller
than anticipated, non cash financial impact while enabling material cost
savings in future years. The Board would like to thank shareholders for their
patience and continuing support.
ASC post IPO
Despite a persistently challenging market and economic backdrop, over the five
years since our IPO, we have successfully grown and diversified the business
with measured cost and investment management and a disciplined, strategic
approach.
A significant milestone was achieved in 2024 with our first full year of
positive EBITDA since listing, a testament to the team's focus on our
strategic priorities and operational efficiencies.
We have further expanded our international footprint, most recently building
on our presence in key Asian markets with the establishment of franchises in
India and Vietnam. In the USA, we acquired Single Cask Nation in early 2024
and then at the end of 2025 we made a fundamental change to our
route-to-market in the country giving more direct control of our operations.
Our strategic delivery has included a move into a clear and structured cask
sales programme, as we realise value from the surplus stocks we hold, an
opportunity which we later extended to private individuals with the launch of
the luxury private cask programme, Artisan Casks.
The opening of our own supply chain facility in Masterton has been another
transformative step, enabling us to become fully self-sufficient in bottling
and dispatch, enhancing our operational resilience.
We have invested in our whisky stock to the point where we now own over 18,000
casks, primarily comprising Single Malt Scotch Whisky, but including
outstanding whisky from 100 different distilleries across 20 countries. As a
result, the cask spirit asset base has grown over 50% over the last five
years, at a Net Book Value (NBV) level and, from an independent valuation
performed in 2024, has an inherent market value of over 3x NBV 1 (#_ftn1) .
Collectively, these steps since IPO have supported a circa 40 percent increase
in SMWS membership numbers and an over 50 percent increase in Group revenues
in 2024 (2025 revenues impacted by significant one-off US impacts) compared to
2020, demonstrating the strength and adaptability of our business model and
positioning us for future profitable growth.
2025 performance and progress
In 2025 the Group delivered a resilient year-on-year performance, in spite of
the significant impact of the cancelled shipments relating to the US
government shutdown and accelerated USA route-to-market changes alongside
ongoing macroeconomic uncertainty and associated weaker consumer demand for
premium and luxury spirits globally. SMWS has continued to evolve, underpinned
by a loyal, global membership base with around 70% member retention. This
year, underlying membership was broadly maintained, with record underlying
recruitment in the UK and China and increasing member engagement across
Europe, a testament to the enduring appeal of our unique single cask and small
batch spirits.
In the past year, we welcomed new franchise partnerships in India and Vietnam,
building on our previous successes in Taiwan and South Korea. Whilst entry
into the Indian market is expected to deliver marginal returns initially, we
believe the future growth potential is a key long-term opportunity for the
business as the Indian whisky market further develops and there is an expected
reduction in tariffs in 2026 from 150% to 75%, dropping to 40% over 10 years.
In the USA, we are initiating important changes to our route-to-market in line
with our strategy to take more direct management of our US operations over
time, as we continue to take steps to reduce the potential impact of any
tariffs. The US government shutdown in the latter part of 2025 caused a delay
to anticipated shipments at the end of FY25 which were entirely out of the
Company's control and which alongside the change to RTM and associated
operational expense had a one-off impact on the reported results for FY25 of
£3.5 million of revenue and £3.1 million of EBITDA. Importantly, this will
have no impact on in-market operations.
To commemorate the 10th anniversary of The Artisanal Spirits Company in March
2025 we released 260 bottles of a limited-edition 10-year-old bourbon-cask
single malt Scotch whisky, for Spirited shareholders to purchase exclusively.
We supplemented this with the introduction of a new, enhanced Spirited
shareholders benefits programme, offering additional benefits for existing
members who hold at least 1,000 shares, as well as a new tier of benefits to
those who hold at least 5,000 shares.
Product innovation remains at the heart of our offering. In 2025, SMWS
continued to delight members with a diverse range of single cask and small
batch releases. Following on from the launch of the Creators' Collection in
2024, towards the end of 2025 we released the new Signature range, enhancing
the messaging and storytelling of the range, and representing a unique and
differentiated offering within the wider whisky industry. This was underpinned
by the simplification of the SMWS flavour profiles ensuring that members can
easily navigate the portfolio. Our focus on quality and exclusivity has
ensured strong demand for our bottlings and reinforced our reputation for
creativity and excellence.
Sustainability continues to be a key pillar of our strategy. We have
maintained our commitment to responsible sourcing, efficient operations, and
reducing our environmental impact, in line with the Scotch Whisky
Association's Sustainability Strategy.
Celebrating continued industry recognition
Once again, the quality of our spirits was recognised by many awards from the
top competitions around the world. Among those, SMWS won five medals at The
Spirits Business Scotch Whisky Masters, seven medals in the International
Spirits Challenge and four awards from the International Wine and Spirits
Competition.
Single Cask Nation retained the honour of Independent Bottler of the Year in
2025 at the World of Whiskies awards.
Solid performance against a challenging backdrop
The Group faced a challenging situation in 2025, with significant cost
inflation in addition to difficult economic, political and market conditions.
In particular, market conditions in Asia were a major driver of the gap to
prior year.
While underlying membership remained broadly flat in the face of tough market
conditions, we saw revenue growth in trade cask sales, venues, and Single Cask
Nation.
Our exclusive SMWS Members' Rooms continued their consistently strong
performance throughout 2025, with mid to high single digit revenue growth in
each quarter of the year. Our disciplined approach to cost management and
operational efficiency has enabled us to continue investing in our strategic
priorities while supporting long-term value creation for shareholders. In the
second half of 2025 we undertook a top to bottom cost review and almost £1
million of gross annualised cost savings were identified that will start to
flow through in the Income Statement in 2026.
We successfully completed a new financing agreement with Santander in
September. The new agreement contains improved terms, such as a longer term,
greater headroom and lower margin than the previous facilities with another
bank.
Strategic priorities
Looking ahead to 2026, our strategic priorities remain clear. Delivering
exceptional and unique whisky, growing our membership and deepening member
engagement are at the forefront of our agenda, and we continue to invest in
member experiences, both in our venues and through digital channels, to foster
a strong sense of community and loyalty. We continue to look towards
international expansion where our focus is on markets in which appreciation
for premium spirits and experiential brands is growing.
The UK, Europe, the USA and Asia remain the priority markets and the next step
in our US strategy will take place from April when we transition the in-market
stock to our direct partners and commence the new route-to-market which we are
confident will deliver substantial recurring cost and efficiency benefits.
People
Our achievements in 2025 would not have been possible without the dedication,
resilience and expertise of our people. I would like to extend my sincere
thanks to the Board, executive leadership and all colleagues across the
business. Their passion for our brands and commitment to our mission are
evident in everything we do. We continue to uphold the highest standards of
governance, ensuring that our decision-making is transparent, accountable, and
aligned with the long-term interests of all stakeholders.
Outlook
The Group has consistently demonstrated its ability to adapt to a changing
world, and 2025 has been no exception. I remain mindful of the external
uncertainties that continue to shape our industry and the significant
headwinds the Group is facing, predominantly due to factors out of its
control. However, we are well placed to achieve future profitable growth, as
the well-held belief that the cyclical rather than structural dynamics of the
spirits market means the last few years' headwinds turn into positive
tailwinds.
The Board and I are grateful to our members, partners and shareholders for
their continued support and trust, and I remain confident that our strategic
initiatives and dedicated team will drive our company forward, delivering
value for our members and shareholders.
CEO Statement
Strategic progress and resilience a key part of FY25
2025 was a year that tested our resilience as a business, as an industry and
as a global community of whisky lovers. Despite persistent macroeconomic
challenges, a complex geopolitical environment, and the previously announced
US operational disruption at the end of the year, The Artisanal Spirits
Company continued to make strategic progress, demonstrating the strength of
our brands, the depth of our expertise, and the commitment of our people.
Crucially, we have maintained a relentless focus on ensuring the business is
future fit for the opportunities ahead. This included a rigorous, Group wide
emphasis on cost discipline and operational efficiency, with active steps to
streamline our cost base and embed stronger productivity across our
operations. This work is already delivering benefits, and our focus on cost
management will continue into 2026, allowing us to focus our resources on the
areas that deliver long-term growth and value creation.
Performance & Strategic Context
Excluding the Americas region, the Group saw a £0.4 million (c2%) decline in
revenue, with a similar sized reduction in EBITDA. Momentum in key markets
improved in H2, and we saw some strong performances within the Group,
including SMWS recruitment in UK and China, resilience in global membership
and retention, expansion of Single Cask Nation and the launch of Artisan
Casks.
Within the United States, while the momentum for in-market sales improved
during the year, returning to growth from Q4-25 following a c30% decline in
H1-25, the US government shutdown prevented us from completing an anticipated
£2.4 million shipment in the period, which would have delivered around £1.8
million of EBITDA. Alongside the one-off £0.5 million cost of the change in
RTM and a known stock return revenue reversal of £1.1 million (with a related
£0.8 million EBITDA effect), these non-recurring factors created a
significant temporary distortion in the reported FY25 results. Importantly,
these steps mark the final chapter of transition, and establish the conditions
for stronger, more profitable growth from FY26 onwards.
At the same time, continuing challenges in Asia remained a meaningful drag on
performance. However, we believe these challenges are cyclical rather than
structural, and we are now starting to see signs of stabilisation. Recent
Scotch Whisky Association export data for 2025 highlighted that the value of
global exports held relatively stable at £5.4 billion, supporting our
confidence that underlying consumer demand remains robust. The long term
drivers of premiumisation - rooted in "less but better" consumption and the
deep emotional connection consumers have with single malt whisky,
craftsmanship, provenance and experience - remain firmly intact.
In the meantime, we continue to have a strong focus on operational efficiency,
delivering significant cost savings and the broader shift to a leaner, more
agile operating model, and this cost discipline together with operational
efficiency will continue to be core priorities throughout 2026.
Progress Across Our Brands
Scotch Malt Whisky Society (SMWS)
SMWS continues to be the jewel in our crown: a unique, global whisky community
grounded in creativity, discovery and experiences. In 2025, we held membership
steady at around 40,000, underpinned by record underlying recruitment in the
UK and China and growing engagement across Europe.
We invested in the brand and proposition: evolving our flavour navigation,
launching the Signature range, advancing the Creators' Collection, and
redesigning the proposition with "Get Into The Good Stuff" to make our world
more accessible without compromising the depth or integrity of our whisky or
our storytelling. Member experience continues to be a powerful differentiator
- demonstrated through the outstanding performance of our Members' Rooms, each
delivering consistent mid-to-high single-digit growth.
Single Cask Nation (SCN)
SCN delivered another strong year, growing revenue by 10% despite a market
backdrop in the USA that remained exceptionally difficult for all Scotch
whisky importers following the introduction of tariffs. SCN's reputation is
rising around the world, recognised again in 2025 with its second consecutive
Independent Bottler of the Year award.
The combination of the new US route-to-market and SCN's growing appeal
positions this brand extremely well for accelerated global expansion.
Cask Sales & Artisan Casks
Our structured trade cask programme delivered year-on-year growth of 13%,
reinforcing its strategic role in both revenue diversification and balance
sheet optimisation. The early momentum of Artisan Casks, our luxury private
cask programme launched in July, was especially encouraging. We believe it
represents a major multi-year opportunity.
Global Expansion
2025 marked the expansion of our franchise model into two major international
whisky markets: India and Vietnam. These new partnerships represent long term
strategic footholds in markets with exceptional potential. Whilst we
anticipate an initial contribution in FY26 will be modest, we are confident
that our disciplined, partnership-led approach will create both brand equity
and commercial opportunity for years to come.
The US - Delivering a Major Strategic Transition
The USA remains the largest whisky market globally and a critical growth
frontier for ASC and we have made significant strategic progress in recent
times:
- We completed the acquisition of SCN in early 2024;
- We initiated the transition to direct control of SMWSA in early 2025;
- We made the final operational shift in late 2025, with the new
route-to-market going live in April 2026.
Although the US shutdown created unavoidable disruption to FY25 shipments, the
foundations now in place are exactly what the business needs: greater control,
greater visibility, and improved cost efficiency, including around $1m
(£750k) of savings over the next three years. Late 2025 showed depletions
returning to growth, a significant milestone, and this has continued into
early 2026.
Our People & Culture
The resilience, expertise and passion of our teams across the UK, USA, China,
Europe, Japan, Australia and Taiwan and our global partners were central to
everything we achieved in 2025. Our engagement scores remain strong and our
culture continues to be one of ASC's greatest assets. Our people are the
custodians of our brands and the creators of the experiences our members love.
Looking Forward - A Clear Vision & Strategy
As we look ahead, we are laser-focused on delivery of our 2026 targets and our
strategic priorities remain clear:
- Recruit, engage and retain more SMWS members worldwide;
- Accelerate SCN's growth into new global markets and US states;
- Realise value from our cask stock through trade and private cask
sales;
- Expand ASC's reach, through portfolio, markets and route-to-market.
Alongside that, we are sharpening the articulation of who we are, why we exist
and the strategy that will deliver our long-term ambitions, through our
remarkable brands,
significant cask holdings, bottling and supply chain capability and whisky
expertise.
Outlook
The industry has experienced a number of years of significant headwinds;
however, we believe these are cyclical, not structural, and the signs of
stabilisation supported by global export values holding steady reinforce our
confidence in the underlying fundamentals of premium whisky.
The operational platform we now have, combined with our cost base efficiency,
enhanced US model, diversified revenue streams and continued global expansion,
positions us well to benefit as conditions improve.
While mindful of near-term uncertainties, I remain confident in the strength
of our brands, our assets, our people and our strategy. The Artisanal Spirits
Company has never been better placed to unlock the full potential of its
proposition and deliver long term value for members, customers and
shareholders.
CFO Statement
Impact of US Government shut-down in late 2025 and RTM change drives FY25 loss
The FY25 reported EBITDA loss was £2.4 million (FY24; £1.1 million EBITDA
profit) and a Loss Before Tax of £7.0 million (FY24; £3.1 million loss). At
an adjusted EBITDA level, the loss reduced to £1.9 million due to the
non-recurring £0.5 million operational expense made with our previous partner
in January 2025, directly linked to our taking greater management of our US
operations.
These two key events had a significant impact on the EBITDA loss in FY25.
Firstly, in addition to the £0.5 million non-recurring operational expense,
we recognised a reversal of revenue of £1.1 million (as a result of stock to
be returned), with an associated £0.8 million on EBITDA, at the end of
December 2025, for stock we expect to be returned to us at the end of March
2026, when our agreement with our current RTM partner expires. This change
allows us the ability to progress with new partners in the market that not
only gives ASC more direct control to drive growth in the market, but also
realises around $1 million (£750k) of savings over a three-year period.
Secondly, due to the US government shutdown in Q4 2025, we were unable to
complete an anticipated £2.4 million worth of shipments, which would have
represented around £1.8 million of EBITDA. The shutdown particularly impacted
our operations due to the unique model of the Society's limited-edition
whiskies, with each new bottle in the shipment requiring a Certificate of
Label Approval (COLA) which could not be obtained as the relevant US
government body was closed.
Revenue diversification and cost efficiencies remained key in FY25
Revenue Diversification
Revenue in the year was £19.9 million, down £3.7 million on the prior year,
with the majority of the reduction related to the £3.5 million impact of the
two key US impacts (£3.5m impact of the £3.2m Americas region decline).
Outwith the US impacts, encouraging growth continues to be delivered within
the recent strategic additions to the Group: Cask Sales and Single Cask
Nation, up £0.5 million (13%) and £0.1 million (10%) respectively.
The marginal revenue decline of 2% (excluding the Americas) in year was
predominantly driven by Asia - a region that witnessed a 25% decline in 2025,
now around 50% of the size it was in 2022. However, we remain well placed in
the Asian market for when improvement in market sentiment returns.
Cost base management and efficiencies
Building on cost savings achieved in 2024, we achieved further net cost
savings in 2025 of £0.3 million (excluding the cost of the £0.5 million
previous partner operational expense) maintaining a key focus on the right
sizing of the business during continued challenging trading conditions.
Selling & Distribution Expenses
This area represented the greatest level of savings in year, totalling £0.8
million. The largest element was within Advertising and Promotion (A&P)
(£0.6 million) ensuring the greatest return on investment possible, with a
focus on membership recruitment and retention, resulting in a reduction of 25%
to £1.7 million (FY24: £2.3 million).
Depreciation was slightly up on FY24 at £1.7 million (FY24: £1.6 million)
through IFRS16 depreciation increase as FY25 was the first full year in the
Edinburgh George Street HQ.
The net FX loss in year was £0.1 million relating to USD and £0.3 million in
JPY (FY24: £0.1 million).
The FX impact is managed closely with hedging where required.
Future cost opportunities that exist within the Group, include a reduction in
depreciation from FY27 onward of around £0.6 million, as the Masterton
facility depreciation ends and for every +/-0.25% base rate interest movement,
an indicative saving of +/-£80k would be achieved.
As a group, we also currently hold a £5.5 million unrecognised deferred tax
asset.
Administrative Expenses
Excluding the non-recurring item of £0.5 million operational expense in the
US operations, overheads reduced by £0.1 million.
Payroll saw an increase of 8% year on year with £0.6 million of cost from
direct employment of the SMWSA team, previously recorded as the commission
cost paid to the third-party partner in the USA. £0.1 million represented
increased NI cost.
Outwith these costs, payroll was flat year on year at £7.1 million (FY24:
£7.1 million), with efficiency savings to offset around £0.2 million impact
of employee pay increases.
Selling & Distribution Expenses Administrative Expenses
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Commission 491 1,071 - -
Advertising & Promotion (A&P) 1,737 2,297 - -
Depreciation 1,672 1,627 - -
FX Loss 419 118 - -
Overheads - - 3,859 3,485
Payroll - - 7,735 7,143
Total 4,317 5,114 11,595 10,628
* Represents payroll cost within Overheads (noting catering employee payroll
costs sits within Cost of Goods Sold)
Regional Review
Europe
As the home of SMWS, the European region comprises UK online, UK Venues,
Europe and our two franchise markets, Denmark and Switzerland.
Membership numbers closed the year in Europe around 25,000, with 17,500 UK
members, the remainder based in Europe. The closing 2025 position was down 8%
on prior year; however, discounting around 3,000 members who temporarily
joined via a complimentary code at the end of 2024 (of which around 80% did
not renew), membership increased by 3% year on year. FY25 was a strong year
for new members in the UK - achieving almost 5,000 new members, alongside a
steady retention rate of around 70%.
Trading performance was mixed in the region with a notable strong performance
in Venues, achieving year-on-year growth of 8%, highlighting the importance of
experience in the current trading climate, boosted by changes in our catering
approach with the premium food offering elevating the whisky experience.
However, UK online and EU online sales, down 3% and 10% respectively,
mirroring the current challenges in the global whisky industry.
Cask sales remained a strategic area for the business, with continued trade
sales, alongside the launch in 2025 of the new luxury, private cask programme,
Artisan Casks. Cask sales overall achieved growth of 13%, achieving a total of
£4.7 million of revenue (FY24: £4.2 million). The opportunity for further
growth in 2026 exists as Artisan Casks delivers in its first full year.
Americas
The Americas region includes The Scotch Malt Whisky Society America (SMWSA)
brand and the 2024 acquired Single Cask Nation (SCN) brand, as well as the
franchises in Canada and Mexico. SMWSA membership was up marginally, 1%, to
around 8,000 members, and saw an increase in retention from 63% to 65%,
supported by the recent loyalty scheme launch.
SMWSA shipments trading was significantly impacted by the US government
shutdown and the change in RTM. Without the government shutdown, we estimate
that revenue would have been broadly flat YoY. At a depletions level, the US
market remains challenging, recently highlighted by SWA export data showing a
15% volume drop in exports to the market in the period May to December 2025,
following the introduction of 10% tariff on Scotch Whisky imports in the US in
April 2025. SMWSA depletion volumes were down around 14% and revenue down
around 20%, but encouragingly, momentum improved during the year (down 4% in
H2, vs 34% in H1) and returned to growth from Q4-25.
SCN recorded another year of growth in 2025, following its strong first year
within the Group, delivering revenue growth of 10% to £0.8 million (FY24:
£0.7 million).
With the last stage of the US RTM strategy taking effect from April 2026, we
remain confident that we can drive revenue and profit growth through a
significant membership increase and an optimised RTM cost base, saving $1
million (£750k) over the next three years. We will continue to support the
SWA in engagement to achieve removal of the 10% tariff on Scotch Whisky
imports.
Asia
Our key Asian markets consist of China, Japan, Taiwan and our franchise
partners in Korea, Malaysia and SE Asia. In 2025 we announced the introduction
of two new franchises in Vietnam and India. Although we anticipate that
initial returns will be marginal, the Indian tariff reduction from 150% to 75%
in 2026, reducing to 40% over 10 years, should help stimulate the market.
India, particularly, remains a long-term strategic opportunity for the Group.
Membership in the region finished the year around 5,000 members, down 4% on
prior year, predominantly as a result of lower retention levels in Taiwan.
China and Japan saw membership growth of 2% and 5% respectively.
The region witnessed another year of challenging market conditions, recording
a revenue decline of 25%, similar to that witnessed in 2024, across all
markets in the region.
Rest of World (RoW)
The other markets within SMWS consist of our wholly-owned subsidiary in
Australia and franchise operations in New Zealand and South Africa.
Australia, representing around 84% of the RoW category, saw a 11% decline in
revenue, RoW region in total achieving £0.9 million in year (FY24: £1.0
million). Membership in the region was also down 8%.
Share member schemes and EPS
No new share options were awarded in 2025. Our Earnings per Share (EPS) at the
end of 2025 was (10.3p), (2024: (4.6p)).
Balance Sheet strength supported by our cask spirit holding
Our balance sheet contains net assets of £7.7 million (FY24: £15.1 million),
the movement reflecting the loss in year, impacted by the US operational
change and US government shutdown.
The strength of our balance sheet remains in significant cask spirit holding
of £28.3 million, representing the net book value paid for the over 18,000
casks that we currently hold. This is further strengthened when we consider
the inherent value of those casks, which are most tangibly supported by two
key comparators completed by independent valuers: 1) appraisal value based on
market recovery within 180 days, and 2) appraisal value based on normal
trading approach over a longer term, circa five-year period.
Appraisal based on market recovery within 180 days applies an average
valuation to NBV of around 200% the most recent valuation completed in early
2026.
An appraisal based on a longer term market recovery was completed on around
18,000 casks in July 2024 and attracted a valuation to NBV of over 300%.
As a result, from the NBV of around £28 million, we have inherent values of
between £50 million to £100 million. This is important to understand when we
consider our net debt levels and the current valuation of the business, the
former considered manageable against the inherent valuation and the latter
considered to not fully incorporate the inherent value, with market cap of
around £24 million and an enterprise value of around £55 million.
Net debt in the year increased to £31.5 million (2024: £25.5 million), the
increase a result of the adjusted EBITDA loss recognised in the year alongside
interest cost of £2.2 million, £0.5 million of US operational expense and
£0.8 million of spirit and wood spend. This lower level of spirit and wood
spend (representing around 1/3 of the 2024 level, 1/5 of the 2023 level and
the lowest level since our IPO in 2021) is a key objective as we reduce net
investment here to support our aim of net cash generation - the intention for
FY26 where profitability delivery will drive the achievement.
Our wider capital allocation approach, alongside our aim of measured and
steady net debt reduction, is a balanced one that recognises the opportunities
to drive growth through operational investment in driving membership growth
and to remain open to opportunities with regards to spirit investment, where
and when applicable.
Successful refinancing of banking facilities
In September 2025 we successfully signed a new financing agreement with
Santander plc to replace, and on preferential terms, the revolving credit
facility (RCF) which was due to expire on 19 June 2026.
The new financing agreement represents an increased facility of £13.5 million
at 20bps lower headline margin rate and no financial covenants, covering a
4-year term. Following completion, The Royal Bank of Scotland RCF of £21.5
million was completely repaid, alongside the remaining term loan and Lombard
cask wood funding, totalling £0.5 million.
The Company's remaining borrowings with Fero (formerly Ferovinum), outwith the
new Santander facility, totalling £6.3 million at December 2025, will be
repaid as each tranche reaches the 2-year tenor, with the final repayment due
in August 2026.
Optimism for the future
FY25 has very much been a year of transition, particularly with regard to the
strategic change in the US RTM. This change which becomes fully effective from
April 2026 gives us the opportunity to move forward and achieve greater
trading penetration in the US market, through increased awareness of the SMWS
and growth in membership as we take greater control of our ability to reach
and engage new members, alongside substantial cost efficiencies.
In the coming year, we believe the work we have completed in recent years
around our diversifying revenue portfolio, notably the acquisition of Single
Cask Nation and the growth in trade cask sales, which will be further
supported in FY26 by the Artisan Casks luxury cask programme, will strengthen
our future profit delivery, given that we remain at 0.4% of the Ultra-Premium
Scotch Whisky market which in 2024 was valued at $7.6 billion.
Consolidated Statement of Comprehensive Income for the year ended 31 December
2025
2025 2024
Notes £'000 £'000
Revenue 6 19,867 23,601
Cost of sales (8,596) (8,576)
Gross profit 11,271 15,025
Selling and distribution expenses (4,317) (5,114)
Administrative expenses (11,595) (10,628)
Finance costs (2,448) (2,461)
Other income 9 59 36
Loss on ordinary activities before taxation 7 (7,030) (3,142)
Taxation 11 (218) (109)
Loss for the year (7,248) (3,251)
Other comprehensive income:
Items that may be reclassified to profit or loss:
Movements in translation reserve (61) (71)
Tax relating to other comprehensive loss - -
(61) (71)
Total comprehensive loss for the year (7,309) (3,322)
Loss for the year attributable to:
- Owners of parent company (7,274) (3,300)
- Non-controlling interest 26 49
(7,248) (3,251)
Total comprehensive loss for the year attributable to:
- Owners of parent company (7,335) (3,371)
- Non-controlling interest 26 49
(7,309) (3,322)
Basic EPS (pence) 12 (10.3p) (4.6p)
Diluted EPS (pence) 12 (10.3p) (4.6p)
Consolidated Statement of Financial Position as at 31 December 2025
2025 2024
Notes £'000 £'000
Non-current assets
Investment property - 285
Property, plant and equipment 13 9,581 10,734
Intangible assets 2,183 2,352
11,764 13,371
Current assets
Inventories 15 32,242 31,768
Trade and other receivables 3,055 4,286
Cash and cash equivalents 1,478 2,868
36,775 38,922
Total assets 48,539 52,293
Current liabilities
Trade and other payables 2,763 3,459
Current tax liabilities 762 705
Financial liabilities 19 7,024 3,032
Lease liability 21 586 513
11,135 7,709
Net current assets 25,640 31,214
Non-current liabilities
Financial liabilities 26,772 25,938
Lease liability 2,294 2,920
Deferred tax liabilities - -
Provisions 686 670
Total non-current liabilities 29,752 29,528
Total liabilities 40,887 37,237
Net assets 7,652 15,056
Equity
Called up share capital 177 176
Share premium account 15,308 15,255
Translation reserve (271) (211)
Retained earnings (7,664) (424)
Cash flow hedge reserve - -
Equity attributable to owners of the parent 7,550 14,796
Non-controlling interest 102 260
Net assets 7,652 15,056
Consolidated Statement of Changes In Equity as at 31 December 2025
£'000 Called up share capital Share premium account Retained earnings Cash flow hedge reserve Translation reserve Other Total controlling interest Non- Total
reserves controlling interest equity
Balance at 31 December 2023 176 15,255 2,789 - (140) - 18,080 195 18,275
Issue of share capital - - - - - - - - -
(Loss)/profit for the period - - (3,300) - - - (3,300) 49 (3,251)
Share-based compensation - - 135 - - - 135 - 135
(Note 25)
Transactions with non-controlling interest - - (48) - - - (48) 16 (32)
Other comprehensive loss - - - - (71) - (71) - (71)
Balance at 31 December 2024 176 15,255 (424) - (211) - 14,796 260 15,056
Issue of share capital 1 53 - - - - 54 - 54
(Loss)/profit for the period - - (7,274) - - - (7,274) 26 (7,248)
Transaction with non-controlling interest - - - - - - - (184) (184)
Share-based compensation - - 33 - - - 33 - 33
(Note 25)
Other comprehensive loss - - - - (60) - (60) - (60)
Balance at 31 December 2025 177 15,308 (7,664) - (271) - 7,550 102 7,652
Consolidated Statement of Cash Flows as at 31 December 2025
2025 2024
Notes £'000 £'000
Loss for the year after tax (7,248) (3,251)
Adjustments for:
Taxation charged 218 109
Finance costs 2,278 2,293
Interest income (2) (1)
Movements in provisions 16 16
Share-based payments 33 135
Investment property fair value movement - (20)
Investment property gain on disposal - (14)
Lease interest 154 151
Non-cash currency gains and losses 349 -
Depreciation of tangible assets 1,397 1,308
Amortisation of intangible assets 223 321
247 (560)
Movements in working capital:
Increase/(decrease) in inventory
Decrease/(increase) in trade and other receivables 151 486
(Decrease)/increase in trade and other creditors 27 1
Cash flow (absorbed by)/from operations (2,157) 974
Income taxes paid (163) (104)
Interest paid excluding lease interest (2,158) (1,676)
Net cash outflow used in operating activities (4,478) (806)
Cash flow from investing activities
Purchase of intangible assets (61) -
Purchase of property, plant and equipment (718) (948)
Sale of investment property 285 169
Sale of property, plant and equipment 21 19
Cash paid to acquire trade and assets of J&J Spirits (201) (238)
Interest income 2 1
Net cash (used in)/generated from investing activities (672) 997
Cash flows from financing activities
Share issue 53 -
Transactions with non-controlling interest - (16)
Dividend paid to non-controlling interest (184) (213)
Asset backed lending received 2,903 4,343
Repayment of asset backed lending (3,550) (116)
Drawdown of Santander RCF 27,829 -
Repayment of Santander RCF (1,057) -
Drawdown of Natwest RCF 1,000 500
Repayment of Natwest RCF (21,500) -
Repayment of loan (966) (487)
Repayment of leases (707) (504)
Net cash from financing activities 3,821 3,507
Net increase/(decrease) in cash and cash equivalents (1,329) 1,704
Foreign currency translation (61) (71)
Cash and cash equivalents at beginning of year 2,868 1,235
Non-controlling interest movement - -
Cash and cash equivalents at end of year 1,478 2,868
Relating to:
Bank balances and short term deposits 1,478 2,868
Notes to the Financial Statements
1) Basis of preparation
The condensed interim financial information presents the consolidated
financial results of The Artisanal Spirits Company plc and its subsidiaries
(together the "Group") for the twelve months ended 31 December 2025 and the
comparative figures for the twelve months ended 31 December 2024.
The Group's consolidated financial statements have been prepared on a going
concern basis under the historical cost convention; in accordance
with UK adopted International Accounting Standards.
This statement does not include all the information required for the annual
financial statements and should be read in conjunction with the Annual Report
& Accounts.
The financial information set out above does not constitute the company's
statutory accounts for 2025 or 2024. The statutory accounts for 2024 have been
delivered to the Register of Companies, and those for 2025 will be delivered
in due course. The independent auditor has reported on these accounts, their
reports were (i) unqualified, (ii) did not draw attention to any matter by way
of emphasis without qualifying their report and (iii) did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006.
This announcement was approved on behalf of the Board on 27 March 2026.
2) Accounting Policies
The accounting policies applied in preparing the condensed consolidated
financial information are the same as those applied in the preparation of the
Annual Report and Accounts for the year ended 31 December 2025, and those
applied in the preparation of the Group's Historical Financial Information
included within the Company's Admission Document.
3) Going concern
The Directors are, at the time of approving the financial statements,
satisfied that the Group and Company have adequate resources to continue in
operational existence for a period of at least 12 months. Thus, they continue
to adopt the going concern basis of accounting in preparing the financial
statements.
The Group meets its day-to-day working capital requirements from a revolving
credit facility of £35.0m together with cash balances. The Group has further
access to a £15.0m inventory financing facility which can be drawn upon if
required, subject to the maximum borrowings cap under the revolving credit
facility. The revolving credit facility was established in September 2025 and
is not due for renewal until September 2029 whilst the inventory financing
facility has an evergreen term. The revolving credit facility has no attached
financial covenants and carries a maximum borrowing cap combined with the
inventory financing facility of £35.0m.
In the context of the above, the Directors have prepared cash flow forecasts
for the period to 30 April 2027 which indicate that, taking account of
reasonably plausible downside scenarios, the Group will have sufficient funds
to meet its liabilities as they fall due for that period.
The Directors have assessed the potential future impacts of geopolitical risk
and have modelled scenarios as follows:
1. A base cash flow forecast. The 2026 figures in this forecast
are based on the Group's 2026 budget, which is compiled using board approved
forecasts and reflecting current performance, expected revenue growth and
membership retention. The 2027 figures in the base cash flow forecast assume
flat performance on 2026. This base case assumes a more prudent growth
trajectory than in previous years, with organic market growth rate at single
digit, supported by full year delivery of strategic initiatives secured. Cost
inflation has been considered and additional costs have been included to
account for increased wage inflation.
2. A severe, but plausible downside scenario. The Directors have
also prepared a sensitised forecast which considers the impact of certain
severe but plausible downside events, when compared to the base case. This
severe but plausible downside scenario assumes a global economic downturn,
exacerbated by a geopolitical shock event with a resultant shut down of Asian
operations impacting revenue in the region of £5m per annum, together with an
associated reduction in global sales based on recent experience from other
economic downturns. Under this scenario, one-off costs to implement the
required cost-base reductions are assumed in the impacted markets.
In this scenario, capital expenditure has been reduced, investment in spirit
and wood continues as per current forecasts, albeit at a lesser level than in
previous years. Throughout the severe but plausible downside scenario the
Group would remain within its facility limits and in compliance with the
relevant covenants, with further cash mitigation opportunities available
through capital expenditure, spirit and wood investment.
The Directors are mindful of the potential impacts to macro-economic
conditions and further risk of disruption to supply chains that the ongoing
geopolitical uncertainty including conflict in the Middle East presents, the
role of significant cask sale cash inflows, and the subjectivity of future
forecasts to changing customer demand, and after assessing the risks do not
believe there to be a material risk to going concern. Based on the above, the
Directors are confident that the Group and Company will have sufficient funds
to continue to meet their liabilities as they fall due for at least 12 months
from the date of approval of the financial statements, and therefore the
Directors believe it remains appropriate to prepare the financial statements
on a going concern basis.
4) Principal risks and uncertainties
The principal risks and uncertainties affecting the Group are separately
disclosed in the Annual Report & Accounts.
5) Dividends
No dividend was declared or paid during the period (prior period £nil).
6) Operating Segments
As the business has grown the level of information presented to the chief
operating decision maker has continued to develop to better support business
needs and inform decision making. The geographical markets in which the Group
operates are allocated to a business segment, consistent with the internal
reporting provided to the chief operating decision-maker.
The chief operating decision maker has been identified as the Board of
Directors, which is responsible for developing strategy and leading its
execution. The Board includes the Chief Executive Officer, Chief Financial
Officer, Chair and Non-Executive Directors.
The Group is organised in three distinct geographical segments for which
summarised management information is available to the Board plus a fourth
segment which makes up the rest of the world. These geographical markets as
set out in the table overleaf represent the operating segments of the Group.
Australia, New Zealand and South Africa, which do not sit within the
identified geographical segments, are aggregated and presented within Other.
Whilst Central costs are not considered at an operating segment level, they
are reported to the Board and are included to aid reconciliation to the
Consolidated Statement of Comprehensive Income. Sales are allocated to the
geographical market in which the sale is fulfilled. The Board receives monthly
financial information to a Gross Profit level, in addition to Central Costs,
and utilise this information to monitor performance and allocate resources.
2025 Europe Asia Americas Other Group
£'000 £'000 £'000 £'000 £'000
Revenue 14,596 3,144 1,268 860 19,867
Cost of Sales (6,108) (1,102) (990) (397) (8,596)
Gross Profit 8,488 2,042 277 464 11,271
Selling & distribution costs (4,317)
Administrative costs (11,595)
Finance Costs (2,448)
Other income 59
Loss before tax (7,030)
Taxation (218)
Net Loss (7,248)
2024 Europe Asia Americas Other Group
£'000 £'000 £'000 £'000 £'000
Revenue 13,785 4,191 4,657 968 23,601
Cost of Sales (5,826) (1,243) (1,086) (421) (8,576)
Gross Profit 7,959 2,948 3,571 547 15,025
Selling & distribution costs (5,114)
Administrative costs (10,628)
Finance Costs (2,461)
Other income 36
Loss before tax (3,142)
Taxation (109)
Net Loss (3,251)
The Board does not receive a segmental breakdown of assets and liabilities,
depreciation or capital expenditure.
Within Europe, the UK represents the largest market, split UK Online and UK
Venues, delivering £2.9 million (2024: £3.2 million) and £4.4 million
(2024: £4.1 million), respectively.
In the Americas region, the largest market being the USA, shipment sales of
£0.6 million were 86% lower than the prior year (2024: £4.0 million), with
in-market depletions 17% lower than the prior year.
China represents the largest market in Asia, revenue in the year of £1.9
million (2024: £2.4 million) was a 18% decline on the prior year, impacted by
the economic headwinds within the market.
Other is predominantly represented by Australia, with revenue of £0.7 million
(2024: £0.8 million).
An analysis of the Group's revenue by product category is as follows.
2025 2024
£'000 £'000
Revenue from sale of whisky 14,399 18,291
Membership income 1,611 1,794
Revenue from sale of other spirits 178 125
Member rooms 2,359 2,218
Events and tastings 1,091 953
Other 228 220
Total revenue 19,867 23,601
Other includes revenue from sales of merchandise, rental income from
investment properties, shipping charges billed to customers, and income from
bottling services provided to third parties. Membership income is recognised
evenly over the membership period.
7) Loss for the year
The Group measures its performance using EBITDA and Adjusted EBITDA, which are
non-GAAP measures. EBITDA and adjusted EBITDA are reconciled to statutory loss
before tax as below:
2025 2024
£'000 £'000
Operating loss is stated after charging:
Amortisation of intangible assets 223 321
Depreciation on tangible assets 1,397 1,308
Cost of inventories recognised as an expense 6,165 6,000
Net foreign exchange loss 419 58
Reconciliation of adjusted EBITDA:
Loss on ordinary activities before taxation (7,030) (3,142)
Add back; Net foreign exchange loss 419 -
Add back; Depreciation of tangible assets 1,397 1,308
Add back; Depreciation of production assets within cost of sales 156 123
Add back; Amortisation of intangible assets 223 321
Add back; Finance Costs - interest on loans 2,278 2,293
Add back; Finance Costs - leases 154 151
EBITDA (2,403) 1,055
Exceptional and non-recurring costs (Note 10) 478 -
Adjusted EBITDA (1,925) 1,055
Adjusted EBITDA and loss for the year are stated after including £nil (2024:
£0.1m) of share based payment costs. Finance costs as stated above total
£2,432k and exclude £16k of provision discount unwind costs, included within
finance costs in the Income Statement.
8) KPI's
2025 Revenue(1) Year End Average Annual Annual Retention Expected LTV
£'000 Members Members Revenue/ Contribution/ % Years(3) (Members)
Member £ Member £(2) £(4)
Europe 9,566 24,715 26,670 359 174 66% 3.0 514
Asia 3,051 5,157 5,140 594 381 64% 2.8 1,071
Americas 707 8,085 7,929 89 (4) 64% 2.8 (12)
Other 822 1,699 1,765 466 241 75% 4.0 954
Total 14,145 39,656 41,504 341 168 66% 2.9 492
Change vs prior year (26%) (7%) 2% (28%) (38%) (7%) (15%) (47%)
2024 Revenue(1) Year End Average Annual Annual Retention Expected LTV (Members)
£'000 Members Members Revenue/ Contribution/ % Years(3) £(4)
Member £ Member £(2)
Europe 9,911 27,359 24,979 397 183 74% 3.9 705
Asia 4,166 5,455 5,265 791 552 75% 4.0 2,187
Americas 4,179 8,041 8,410 497 345 63% 2.7 943
Other 968 1,867 1,917 505 281 72% 3.5 997
Total 19,224 42,722 40,571 474 269 71% 3.4 927
1 Total revenue excludes sales totalling £5,722k (2024: £4,377k) which
relate to trade cask sales, Artisan Casks, JG Thomson and Single Cask Nation,
and are unrelated to membership proposition.
2 Contribution is a non-IFRS measure, and is defined by Management as Gross
Profit less Commission paid on sales.
3 Expected Years is a non-IFRS measure, and is defined by Management as one
divided by one minus retention 1/(1-r%).
4 Lifetime Value (LTV) is a non-IFRS measure, and is defined as Annual Gross
Profit per member, multiplied by expected years.
9) Other operating income
2025 2024
£'000 £'000
Other income 59 36
59 36
Other income in 2025 and 2024 relate to refunds of previously overpaid
expenses in SMWS China.
10) Exceptional and non-recurring costs
2025 2024
£'000 £'000
US operating expense 478 -
478 -
For the year ended 31 December 2025, non-recurring costs of £478k were
incurred in relation to taking more direct management of the Group's
SMWS America Business. The cost incurred incorporates the cost to compensate
the previous supplier for finding and training revenue‑generating employees.
11) Taxation
2025 2024
£'000 £'000
Current income tax
UK corporation tax
Adjustment in respect to prior periods - -
Foreign tax 218 109
Current tax charge - -
Deferred tax
Deferred tax charge - -
Tax on ordinary activities 218 109
12) Earnings per Shares (EPS)
2025 2024
£'000 £'000
Earnings used in calculation (7,274) (3,320)
Number of shares 70,732,443 70,559,774
Basic EPS (p) (10.3p) (4.6p)
Number of dilutable shares 75,438,906 76,058,111
Diluted EPS (p) (10.3p) (4.6p)
All dilutable potential shares relate to share options. A loss per share is
not diluted. The number of shares and number of dilutable shares shown
represent the weighted average for the period.
13) Property, plant and equipment
Land and Land and Leasehold Fixtures, Cask wood Right-of use Total
buildings buildings improvements fittings and equipment £'000 asset £'000
freehold leasehold £'000 £'000 £'000
£'000 £'000
Cost or valuation
As at 31 December 2023 678 1,441 503 4,962 4,289 4,505 16,378
Additions - - 25 144 779 1,159 2,107
Disposals - - - (19) - - (19)
As at 31 December 2024 678 1,441 528 5,087 5,068 5,664 18,466
Reallocation 1 1 (1) - 1 1 3
Additions - 25 - 35 658 - 718
Disposals - - - (50) - (10) (60)
As at 31 December 2025 679 1,467 527 5,072 5,727 5,655 19,127
Accumulated depreciation
As at 31 December 2023 196 1,167 353 2,019 662 1,555 5,952
Charge for the year 15 53 51 844 237 579 1,779
As at 31 December 2024 211 1,220 404 2,863 899 2,134 7,731
Charge for the year 25 73 29 830 262 639 1,858
Reallocation/remeasurement - - (8) 7 - 5 4
Released on disposal - - - (47) - - (47)
As at 31 December 2025 236 1,293 425 3,653 1,161 2,778 9,546
Net book value
As at 31 December 2024 467 221 123 2,224 4,169 3,530 10,734
As at 31 December 2025 443 174 102 1,419 4,566 2,877 9,581
£262k (2024: £226k) of the depreciation charge for cask wood, alongside
£90k (2024: £62k) of the depreciation charge for fixtures, fittings and
equipment and £66k (2024: £66k) of the depreciation charge for right-of-use
assets have been capitalised as costs of stock. The remaining balance has been
expensed to the Statement of Comprehensive Income.
Leases are in relation to the Group's supply chain facility at Masterton Bond,
the Group's Head Office in Edinburgh, and venues at Queen Street in Edinburgh
and Bath Street in Glasgow.
Right of use assets included in the Consolidated Statement of Financial
Position were as follows.
Venues Supply Head Total
Chain office
Facility
As at 31 December 2023 1,145 1,805 - 2,950
Additions 75 - 1,084 1,159
Depreciation (201) (232) (146) (579)
At 31 December 2024 1,019 1,573 938 3,530
Remeasurement/reallocation - - (14) (14)
Depreciation (209) (232) (198) (639)
At 31 December 2025 810 1,341 725 2,877
Lease Liabilities included in the Consolidated Statement of Financial Position
were as follows.
Venues Supply Chain Head office Total
Facility
As at 31 December 2023 1,131 1,828 - 2,959
Additions 37 - 789 826
Interest payment 63 44 44 151
Repayment of lease liability (249) (255) - (504)
At 31 December 2024 983 1,617 833 3,433
Additions - - (11) (11)
Interest payment 55 44 55 154
Repayment of lease liability (249) (255) (192) (696)
At 31 December 2025 789 1,406 685 2,880
14) Business Combinations
In the prior year, on 3 January 2024 the Group acquired 100% of the trade and
trading assets of J&J Spirits, trading as Single Cask Nation. Single Cask
Nation is a US-based membership society that purchases single cask whiskies
and other spirits to distribute and sell direct to consumers and through
retail and distribution channels in the USA, UK, Germany, Sweden, Japan,
Israel and Canada.
During 2025, deferred consideration to the sellers of £201k was settled in
line with the earn-out agreement based on metrics relating to revenue, EBITDA
and total members (2024: £78k).
Details of the acquisition as disclosed in 2024 are as set out below:
2024
£000
Purchase consideration:
Cash paid 160
Deferred consideration 307
467
Less: fair value of identifiable net assets acquired (248)
Intangible asset recognised 219
Goodwill recognised is attributable to the workforce assumed with the
acquisition, and synergies expected to be achieved as part of the Group.
Deferred consideration recognised is contingent upon the future revenue,
profitability and membership growth in the acquired business during the
financial years 2024 and 2025. This comprises a base earn out and stretch
target with the amount payable ranging from £nil to £397k. The deferred
consideration recognised on acquisition of £307k was valued based on forecast
trading performance at the acquisition date.
The fair value of net assets acquired comprise:
2024
£000
Cask whisky and other spirits 99
Bottled stock and other inventory 74
Customer list intangible 75
248
15) Inventories
Group Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Cask Goods 28,256 27,810 - -
Bottled stock 2,274 2,515 - -
Other inventory 1,712 1,443 - -
32,242 31,768 - -
The cost of inventories recognised as an expense during the year was £6,165k
(2024: £6,000k). The cost of inventories recognised as an expense includes
£160k (2024: £39k) in respect of write-downs of bottled stock and other
inventory. Included within Other Inventory is £304k of inventory previously
sold to and held by a third party customer, to which the Group expects to
apply a repurchase provision at the end of a contracted period in March 2026.
The value of inventory expected to be recovered is based on the original cost
of the inventory at sale. This comprises finished goods which will be used for
resale.
16) Financial liabilities
Group Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Inventory Secured RCF 26,772 20,500
Inventory financing 7,024 7,505
Bank loans - 950 - 225
Other loans - 15 - 15
Financial liabilities 33,796 28,970 - 240
Lease liabilities 2,880 3,433 2,092 2,450
Total financial liabilities 36,676 32,403 2,092 2,690
Inventory secured RCF The revolving credit facility (RCF) with Santander was
drawn in September 2025, replacing the previously extant facility with RBS.
The new facility is secured by a bond and floating charge over eligible
inventory within the Group. The availability of funds under the facility
agreement is linked to a calculation of eligible inventory, being the casked
goods component of inventory assets. Interest under the Santander facility
agreement is calculated at a rate of 2.05% over the prevailing Bank of England
base rate. Interest accrues daily and may be paid or rolled up on a monthly
basis. As at 31 December, the Group has cash settled all interest accrued.
Security is granted by the Company via a separate floating charge over the
Company's property, undertakings, assets and rights owned at the time the
floating charge was granted and in the future. The facility is committed,
subject to compliance with representations, undertakings and events of
default, and carries no financial covenants.
Inventory financing As set out in Note 3, on 6 November 2023 the Group entered
into a facility with Ferovinum under which the SMWS subsidiary may raise
finance of 60% to 80% of current market value secured against cask spirit. The
total available facility is £15.0m with utilisation as at 31 December 2025 of
£6.3m (2024: £6.9m). The facility carries interest on cash advanced at a
rate of 2.25% over the Bank of England base rate, settled on settlement of the
principal. The total outstanding balance is secured against cask inventory
with a book (cost) value of £6,250k. The Company has issued a parental
guarantee to SMWS in favour of the lender.
Bank loan Bank loans secured on the Group's properties were repaid on
refinance in September 2025.
17) Financial instruments - accounting classifications and fair value
Financial assets
Trade and other receivables and cash and cash equivalents are classified as
financial assets at amortised cost.
Derivative assets are classified as financial assets measured at fair value
(level 2 - i.e. those that do not have regular market pricing) through the
Consolidated Statement of Comprehensive Income.
Financial liabilities
Trade and other payables (excluding deferred income) are classified as
financial liabilities and measured at amortised cost.
The fair value of both financial assets and financial liabilities have been
assessed and there is deemed to be no material difference between fair value
and carrying value.
Derivative liabilities are classified as financial liabilities measured at
fair value (level 2) through the Consolidated Statement of Comprehensive
Income.
1 (#_ftnref1) Valuation completed in July 2024. Changes may exist over the
period.
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