REG - Artisanal Spirits Co - Interim Results for the Six Months to 30 June 2025
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RNS Number : 6836Y Artisanal Spirits Company PLC (The) 10 September 2025
10 September 2025
The Artisanal Spirits Company plc
('Artisanal Spirits', 'ASC' or 'the Group')
Interim Results for the Six Months to 30 June 2025
H1 adj. EBITDA maintained versus H1-24 and FY EBITDA delivery remains on track
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 is pleased to announce its Interim Results for the six
months ended 30 June 2025.
H1 Performance Summary
• Strategic delivery achieved via ongoing revenue diversification and various
new initiatives, as well as further cost efficiency, to navigate a challenging
global whisky market
• Membership retention remained strong at 70%, with total membership numbers up
3% on H1-24
• Adjusted EBITDA(1) maintained vs H1-24 despite the challenging trading
conditions
• Revenue marginally decreased (4%), largely reflecting the c£1m reduction in
rephased US shipments vs H1-24, while we implemented our tariff mitigation
plan and reflecting weaker US consumer confidence.
• Excluding US shipments, underlying revenue performance was up 6% YoY as cask
sales growth offset declines in Asia and mainland Europe
• Our members continue to enjoy and engage in the SMWS in-person experience,
with venues revenue up 6% vs H1-24
• H1 net debt of £29.5m (H1 2024: £27.0m) driven by the impact of US phasing
(greater weighting to H2)
• Execution of exciting new initiatives in 2025, notably Artisan Casks luxury
private cask programme and the successful launches of our Creators Collections
• Established new franchise agreements in India and Vietnam, both markets in the
top 10 Ultra-Premium Scotch Whisky markets(2), by value, with India also the
largest globally, by volume(2) and Single Cask Nation (SCN) also shipped its
first volumes into Brazil
• Successful inaugural SMWS partnership with AMEX in the UK attracting almost
1,000 new members over Q2 and Q3
• Continued recognition for the quality and consistency of our whisky, with 13
awards achieved in 2025 so far, across three key industry events, as well as
celebrating Single Cask Nation (SCN) retaining its title as Independent
Bottler of the Year at the World of Whiskies awards
Current Trading & Outlook
• Trading in H2-25 to date has been in line with expectations
• Artisan Cask sales starting to gather momentum since the launch in July
• Preparations underway for the launch of the next phase of our Range Review,
the new Signature range and additional Creators Collection and Heresy range
releases
• Retained focus on full year EBITDA delivery through anticipated H2-25 revenue
derived from:
o Single digit growth in SMWS depletions vs prior year
o Increased US shipments following implementation of our new RTM in response
to the introduction of tariffs
o Significant margin return from the newly launched Artisan Cask programme as
well as further trade cask sales
(1 Adjusted EBITDA classed as Earnings Before Interest, Tax, Depreciation,
Amortisation and non-recurring costs (see note 9 to the accounts) )
(2 IWSR data 2024)
The Board of The Artisanal Spirits Company considers that current consensus
market expectations for the year ending 31 December 2025 are revenue of
£26.0m (2024; £23.6m) and EBITDA of £1.5m (2024; £1.1m).
( )
£'m 6 months to 30 June 2025 6 months to 30 June 2024 % change
Note
Revenue 6 9.7 10.1 (4%)
Gross profit 5.7 6.4 (10%)
Gross margin 59% 63% (4ppt)
EBITDA 9 (1.5) (1.0) (50%)
Adjusted EBITDA* (1.0) (1.0) -
Loss before tax 9 (3.6) (3.1) (17%)
Loss after tax (3.7) (3.2) (19%)
Net Debt (29.5) (27.0) (9%)
Cask inventory 14 28.1 26.5 11%
*Adjustment relates to the
non-recurring costs of £0.5m paid in January 2025 in relation to the US
transition
Operational highlights:
Global membership
'000s June 2025 June 2024 % change
Europe 26.8 24.4 10%
Asia 5.1 5.5 (8%)
Americas 7.7 8.5 (9%)
Rest of World 1.8 1.9 (5%)
Total members 41.4 40.3 3%
*Rest of World represents Australia, New Zealand and South Africa
Andrew Dane, CEO of Artisanal Spirits Company, commented:
"We remain focused on executing our strategy and maintaining profitability,
whilst continuing to navigate macro factors in the markets in which we
operate. Our diversified revenue streams, strong member engagement and
disciplined cost management have enabled us to deliver adjusted EBITDA in line
with the prior year, despite a softer trading environment in certain
geographies.
"Our proven strategy of investing in whisky stock continues to provide ASC
with optionality - providing an impressive, award-winning, asset base which
satisfies our requirements well into the next decade, delivering a significant
uplift in value creation and diversifying our revenue streams through
strategic cask sales.
"H1 has seen the successful launch of Artisan Casks, as well as our expansion
into India and Vietnam which mark important steps as we continue to build this
unique business for the medium to longer term.
"With momentum building in H2, particularly across Europe and China, and US
shipments now resuming momentum, we remain on track to deliver FY EBITDA in
line with market expectations."
Sellside analyst presentation
Andrew Dane (CEO) and Billy McCarter (CFO), will host a webcast presentation
for sellside equity analysts, followed by Q&A, at 10.00 hours BST
today. Analysts wishing to join should register their interest by
contacting: artisanalspirits@instinctif.com
(mailto:artisanalspirits@instinctif.com)
Investor presentation
Andrew Dane and Billy McCarter will provide a live presentation relating to
the Half Year Results via Investor Meet Company on Thursday, 11 September 2025
at 1400 hours BST. 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://url.uk.m.mimecastprotect.com/s/afi5CQWRNfo87VgSxfjsGZdaP?domain=investormeetcompany.com)
The presentation is open to all existing and potential shareholders. Questions
can be submitted prior to the event via the Investor Meet Company dashboard
until 0900 hours BST on Wednesday, 10 September 2025, or at any time during
the live presentation.
For further enquiries:
The Artisanal Spirits Company plc https://artisanal-spirits.com/link/eX2E7P
(https://artisanal-spirits.com/link/eX2E7P)
Andrew Dane, Chief Executive Officer
Billy McCarter, Chief Financial Officer
Panmure Liberum Limited (Nominated Adviser and Broker) Tel: +44 (0) 20 3100 2222
Edward Thomas
Dru Danford
John More
Instinctif Partners (Financial PR) Tel: +44 (0)20 7457 2020
Justine Warren
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 150 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 - delivering revenue of £23.6
million in FY24, 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.
Interim Statement
Group Progress
In FY25-H1 we have retained our commitment to strategic delivery, cost
discipline and revenue diversification as we witnessed the same economic and
industry headwinds as FY24, as well as the additional impact of US tariffs.
The marginal decline in revenue in the period reflects the uncertainty of the
US tariff situation in H1-25. We moved swiftly to implement pre-emptive
action taking greater control in the region and reviewed our US route to
market (RTM) approach. Whilst this resulted in shipments to the US being
temporarily down £1m versus the prior year, the action we have taken will
ensure that we have a cost-optimised solution which will protect profitability
in the longer term. I am pleased to say we have now successfully completed
this work and will move ahead with shipments in the balance of year that
represent a level closer to the full year expectation.
Outwith the US, our well diversified revenue base ensured performance was up
6% year on year, as cask sales growth offset the aforementioned persistence of
challenging trading conditions in Asia, and a slower Q2 in Europe.
Cost efficiency and effectiveness remains key to our success and continued to
play a key role in H1-25. Savings in the cost base offset the gross profit
impact of revenue decline and investment in pricing which has been made, as we
acknowledge pressures on consumer confidence.
At a membership level, our retention remains strong at 70%. As a result of
double-digit growth in Europe, our membership closed at 41,400 at the end of
Jun-25, up 3% vs Jun-24. The growth in Europe was driven by a UK-specific
marketing campaign in Q4-24, where we gained an additional 3,000 new members.
The campaign saw a 20% 'onboard' rate with c600 fully engaged new members
spending an average of £160 per person. Such is the size of the campaign, we
do expect retention levels to be lower than average in Q4-25, as a result year
end membership likely to be closer to 40,000.
Whilst challenging trading conditions persist, we will navigate these through
ongoing revenue diversification, realising the value of our asset base and
continued focus on driving efficiencies within our cost base, remaining
focussed on achieving EBITDA in line with expectations.
International Trading
Europe
Membership in Europe is up 10%, reflecting the aforementioned new member
marketing campaign in Q4-24. Retention remains strong and is up by 10bps, the
improvement in retention to 75% supported by our renewal and bottle product
and introduction of auto renewal in the UK toward the end of H1. At the end of
H1, we also commenced our inaugural partnership with AMEX in the UK, promoting
SMWS via the AMEX credit card app, attracting almost 1,000 new members over Q2
and Q3.
Revenue performance was strong as we made an encouraging start to the year
with regards to cask sales. Overall, the region was 21% up on FY24 and cask
sales up 140%. In our Venues and events, we have seen continued growth in
member visits and engagement, resulting in a 6% revenue growth year on year.
Following a strong Q1 in Europe and UK online sales, where growth was achieved
of +18% and +5% respectively, H1-25 finished around flat in the UK and down
10% in Europe.
The growth in membership, success of our first partnership with AMEX and
strong cask sales is supported by early growth signs in Q3, Europe and UK
online showing a mid-high single digit growth versus the same period in H1-24.
In Q4-24, following a successful partnership with AMEX, we will also launch
the bottle and membership product on Amazon in the UK as we look to recruit
and grow members.
Americas
The US remains the world's largest market for Scotch Malt Whisky, with over
$1.3 billion of 2024 sales at Ultra-Premium price points and above (bottle
prices over $45).
The market has been challenging in H1-25 as the introduction of tariffs to the
spirits market has created a significant amount of uncertainty within the
industry and the local economy, further weakening consumer confidence. ASC
has not been immune to these macro factors with the result being a decline in
local depletions of around 30%.
The uncertainty of tariffs also led to a pause on shipments to the US, as we
awaited confirmation of the tariff position and ultimately a requirement to
review our route to market (RTM) to ensure it was one that achieved an optimal
cost outcome. As a result, shipments to the US, relating to both SMWS America
(SMWSA) and Single Cask Nation (SCN) brands were down around 50% (£1.0m).
Looking ahead, at this time, tariffs appear to be a requirement to trade in
the market, however, through the actions we have taken, we are now in a
position to ship goods to the country at a more optimal cost than H1 and
therefore anticipate we will see a heavier weighting of US shipments in H2.
Our full year expectation is that shipments will resume at similar levels to
FY24 as we see some growth coming in the market, recently witnessed in key
spirits majors' results, the upcoming launch of our new loyalty programme in
the US and first delivery in market of ASC's new Signature range livery.
Membership in the US has declined by 9%, further evidence of market
conditions, however, we expect to see growth in H2 now we have greater control
in the market and focus attention in this area, including the new loyalty
programme.
Asia
In Asia, the landscape remains challenging as a consequence of economic
headwinds continuing to impact consumer confidence and spending behaviour.
The combination of these factors has resulted in around a 30% decline in
revenue in the region, with membership down 8% (around a third of the absolute
reduction related to the closure of the Hong Kong subsidiary).
We remain confident the market will recover in the medium to long term, and
Asia remains a key market with regards to our Artisan Cask offering. In China,
membership has grown to over 2,100 and much of the 30% revenue decline
reflects phasing, with a stronger H2 expected to achieve close to flat year on
year full year sales, supported by membership growth, together with timing of
new product releases.
Global and Product Expansion
Artisan Casks - luxury private cask programme
Early in H2-25 we announced the exciting launch of our new luxury private cask
programme, Artisan Casks.
The programme offers private individuals the chance to purchase an individual
cask, to appreciate and enjoy the artisanal nature of whisky, and experience
first-hand the technical artistry the whisky-makers at ASC demonstrate for the
casks in their care.
Only a handful of Artisan Casks will be released each year, and they are all
of a quality to allow for immediate bottling, are aged at least 20 years and
have the potential for additional maturation, as desired, in consultation with
ASC's whisky-makers.
Artisan Cask owners will join a select network with a discerning appreciation
for the finest craftsmanship and luxury experiences. In collaboration with
ASC's partners and affiliates, cask owners will receive privileged access to
some of Scotland's most renowned distilleries and sought after bottlings, as
well as invitations to exclusive, private events.
The programme has seen good levels of initial sales in July and August and we
anticipate that the programme will deliver in the balance of H2 in support of
our revenue and EBITDA aims.
Franchise growth
As we continue to progress the Group's strategic objective of international
growth and expansion into new markets, in H1-25 we announced the SMWS launch
in Vietnam, swiftly followed in early H2 with the signing of a contract with a
franchise partner in India.
Subject to label registration being completed, we expect to dispatch ASC's
first shipment of product to India, the largest global Scotch Whisky market by
volume(2), in the coming months.
India and Vietnam mark additional milestones in the Group's strategic
expansion in Asia. Whilst entry into the Indian market is expected to deliver
marginal returns initially, we believe the long-term opportunity from brand
presence and strategy execution, alongside our experienced and well-connected
franchise partner, is an important area of future growth for the business as
the Indian whisky market further develops.
Next phase of the range review
Following on from the launch of the Creators Collection in 2024, SMWS will be
releasing its new Signature range in Q4-25, the purpose being to enhance the
messaging and storytelling of the range, our signature offering representing a
unique and differentiated offering within the wider whisky industry.
Allowing greater exploration for our members, at all price points, the
Signature range will consist of eight flavour profiles which aim to simplify
the way in which members navigate the full range of outstanding,
limited-edition whiskies SMWS has to offer.
Celebrating Continued Industry Recognition
Awards won so far in 2025 have taken the ASC tally to over 380 - a feat we are
extremely proud of as we seek to create and sell outstanding, limited-edition
whiskies.
The awards this year include SMWS taking home five medals from bottlings in
its signature range, including two Masters awards, two Golds and a Silver, at
The Spirits Business Scotch Whisky Masters, the Master awards achieved for
Cask No. 53.491: Gastronomic Beachcombing and Cask No. 72.124: Soak Up the
Sunshine with a Glass of Sherry.
In addition, SMWS won four Gold, one Silver and a Double Gold medal in the
International Spirits Challenge, which promotes outstanding quality spirits
from across the globe and receives thousands of entries from over 70 countries
worldwide, as well as four awards from the International Wine and Spirits
Competition (IWSC), with two Gold and two Silver medals.
Earlier this year in the US, Single Cask Nation ("SCN") also retained the
honour of Independent Bottler of the Year, the 2025 award adding to its
inaugural win in 2024, at the World of Whiskies awards.
Current Outlook and Trading
Trading in the initial weeks of H2 have been positive, with consolidation in
the year-on-year EBITDA position and revenue improvement in the Europe region,
namely double-digit growth in the UK in the first months of H2 and Venues
continuing to show growth year on year as well as double digit growth in China
in August.
With the H1-25 tariff cost optimal route to market (RTM) work now
fundamentally complete, we anticipate that US shipments will gather in
momentum as we deliver stock required in the market.
From a cask sales perspective, trade cask sales remain a deliverable in H2 to
achieve our profit targets, and we expect to see continued engagement with the
Artisan Luxury Cask programme as a valuable generator of revenue and
significant margin and profit to the Group. The nature of cask sales is less
linear in comparison to market depletions, however, sales in H1-25 of trade
casks and £0.2m delivery in early weeks of launch of Artisan Casks allows us
to remain positive about meeting forecast EBITDA expectations.
The Board remains confident in the future opportunity for ASC and delivery of
market consensus EBITDA expectation.
(2) IWSR data 2024
Financial Review
The Group has reported an adjusted EBITDA loss in H1 of £1.0m, in line with
the previous year. Revenue and Gross Profit both fell compared to H1 2024 due
to the impact of the reduction in shipments to the USA and continued headwinds
in Asia, and investment in ensuring price competitiveness, offset by growth in
cask sales. After adjusting for the £0.5m non-recurring cost incurred in
January to take greater control of the Group's operations in the USA,
unadjusted EBITDA is £0.5m behind 2024. The resultant loss before tax (LBT)
of £3.6m is £0.4m behind prior year reflecting this one-off cost, mitigated
through continuation of the Group's focus on operating cost efficiency and a
reduction in commission due to a combination of structural changes and reduced
revenue.
Year on year revenue declined by 4% to £9.7m (2024: £10.1m) as a result of
the Group's decision to delay shipments to the USA owing to tariff
uncertainty. The impact of £1.0m on revenue in the USA is expected to unwind
through H2 following completion of the Route to Market review. Across Asia,
the headwinds experienced throughout FY23 and FY24 have continued, with
revenue declining a further 30% against H1 2024, the impact predominantly in
China and Japan. In Europe, a £1.3m increase in revenue reflects the increase
in cask sales with a 9% fall in direct-to-consumer e-commerce sales being
offset by the impact of improved performance across UK Venues and European
franchise markets. The Rest of World also experienced a 12% reduction in
revenue, driven by membership decline in Australia.
Selling & Distribution Expenses Administrative Expenses
2025-H1 2024-H1 2025-H1 2024-H1
£'000 £'000 £'000 £'000
Commission 233 633
Advertising & Promotion (A&P) 876 1,230
Depreciation 926 916
FX Loss 99 30
Overheads 1,599 1,852
Payroll 3,891 3,637
Total underlying 2,133 2,810 5,490 5,489
Non-underlying overheads - - 478 -
Total 2,133 2,810 5,978 5,489
Despite headwinds in a number of markets, the Group has continued to manage
costs and seek out efficiency within its cost base. As a result of changes to
commission structures in late 2024, commission has reduced 60% year-on-year,
largely in the USA where these costs are replaced by payroll costs with the
added benefit of control over activity.
Ongoing management of advertising and promotional costs to ensure they are
appropriate to support current revenue levels has driven a 29% reduction in
A&P spend (a 47% reduction against H1 2023); the continuing focus is on
maximizing return on A&P investment with spend focused on the completion
of the SMWS range review, and product and brand development for the new
Artisan Casks luxury programme.
Currency losses of £0.1m in H1 relate predominantly to the US dollar. For
every +/-1c movement in USD, the EBITDA impact is +/-£15k. In year, US dollar
hedging reduced the realised FX loss by £18k.
Alongside the overall £0.7m saving in selling and distribution costs,
administrative expenses (excluding non-recurring costs) are in line with
H1-24, despite the inclusion of £0.5m US in-market operating costs taken on
following the Group obtaining control of operations in that market. Cost
management within overheads continues to deliver savings in relation to travel
costs, professional fees and IT costs where supplier price increases are
mitigated through previous investments in people and systems delivering
greater efficiency.
Payroll costs are £254k higher than in H1 2024 following the successful
onboarding of the US operations, inflationary pay increases and the increase
in Employers' National Insurance in the UK from April 2025, the latter
impacting by around £100k per annum.
The Group's cash flow in H1 2025 shows an increase in net debt of £4.1m from
December 2024 to £29.5m. This is predominantly driven by £1.0m EBITDA loss
for the period, £0.5m in cash-settled non-recurring costs, £1.1m outflow on
net working capital and interest paid of £0.8m. EBITDA loss and £0.5m
non-recurring cost are both impacted by slower than anticipated US in-market
depletions, with a resultant re-phasing of £2.4m of trade receipts now
expected in H2.
Further cash outflows incurred related to the settlement of £0.2m deferred
consideration for Single Cask Nation following achievement of earn-out targets
in 2024, and £0.1m of dividend payments to a non-controlling interest. The
Group concluded the sale of its second investment property, a flat above the
Vaults in Leith, and utilized the £0.3m receipt to repay a portion of debt.
Inventory investment within working capital (incorporating spirit, finished
goods and raw materials) is a marginal cash spend YTD with £0.2m of spirit
spend offset by reductions in finished goods and raw materials as a result of
more efficient usage of existing inventories. Investment in spirit and wood
combined, of £0.5m, remains at lower levels than previously experienced as a
result of whisky stocks being sufficient to meet demand for the foreseeable
future, with investment on a replenishment basis.
As we move forward through H2, profit delivery in the six months will result
in net debt reduction from the current position, noting however cash receipts
from US sales rephased in H2 will fall into FY26. Nonetheless the Balance
Sheet remains strong, with a cask inventory asset holding significant value
over and above carrying value.
The Artisanal Spirits Company plc
Consolidated Statement of Comprehensive Income
For the period ended 30 June 2025
6 months to 6 months to Year Ended
30 June 2025 (Unaudited)
30 June 2024 (Unaudited)
31 December 2024
(Audited)
£'000 Notes
Continuing operations
Revenue 6 9,679 10,095 23,601
Cost of sales (3,992) (3,720) (8,576)
Gross Profit 5,687 6,375 15,025
Selling & Distribution expenses (2,133) (2,810) (5,153)
Administrative expenses (5,978) (5,489) (10,589)
Finance costs (1,137) (1,146) (2,461)
Other income 8 2 3 3
Loss on ordinary activities before taxation 9 (3,559) (3,067) (3,142)
Taxation (84) (18) (109)
Loss for the period (3,643) (3,085) (3,251)
Other comprehensive income:
Item that will not be reclassified to profit or loss
Movements in translation reserve (81) (111) (71)
(81) (111) (71)
Total comprehensive loss for the period (3,724) (3,196) (3,322)
Loss for the period attributable to;
- Owners of parent company (3,639) (3,139) (3,300)
- Non-controlling interest (4) 54 49
(3,643) (3,085) (3,251)
Total comprehensive loss for the period attributable to;
- Owners of parent company (3,720) (3,250) (3,372)
- Non-controlling interest (4) 54 49
(3,724) (3,196) (3,322)
Basic EPS (pence) 12 (5.1) (4.4) (4.6)
Diluted EPS (pence) 12 (5.1) (4.4) (4.6)
The Artisanal Spirits Company plc
Consolidated Statement of Financial Position
As at 30 June 2025
As at As at
30 June 2025 (Unaudited)
31 December 2024 (Audited)
£'000 Notes
Non-current assets
Investment property - 285
Property, plant and equipment 13 10,145 10,734
Intangible assets 2,230 2,352
12,375 13,371
Current assets
Inventories 14 31,809 31,768
Trade and other receivables 4,382 4,286
Cash and cash equivalents 1,399 2,868
37,590 38,922
Total assets 49,965 52,293
Current liabilities
Trade and other payables 2,313 3,459
Current tax liabilities 605 705
Financial liabilities 15 6,990 3,032
Lease liability 15 578 513
10,486 7,709
Net current assets 27,104 31,214
Non-current liabilities
Financial liabilities 15 24,867 25,938
Lease liability 15 2,588 2,920
Other payables - -
Provisions 678 670
28,133 29,528
Total liabilities 38,619 37,237
Net Assets 11,346 15,056
Equity
Called up share capital 176 176
Share premium account 15,308 15,255
Translation reserve (291) (211)
Retained earnings (3,976) (424)
Cash flow hedge reserve - -
Equity attributable to parent company 11,216 14,796
Non-controlling interest 129 260
Net assets 11,346 15,056
The Artisanal Spirits Company plc
Consolidated Statement of Cash Flows
For the period ended 30 June 2025
6 months to 6 months to Year Ended
30 June 2025 (Unaudited)
30 June 2024 (Unaudited)
31 December 2024
(Audited)
Notes
Loss for the year after tax (3,643) (3,085) (3,251)
Adjustments for:
Taxation charged 84 18 109
Finance costs 1,049 1,057 2,293
Interest income - - (1)
Movements in provisions 8 73 16
Share-based payments 86 72 135
Investment property fair value movement - - (20)
Investment property gain on disposal - - (14)
Lease interest 88 89 151
Depreciation of tangible assets 923 856 1,308
Amortisation of intangible assets 124 168 321
Movements in working capital:
Increase in inventory (41) (292) (560)
Decrease/(increase) in trade and other receivables (96) (1,009) 486
Increase/(decrease) in trade and other creditors and provisions (935) (77) 1
Cash flow from/(absorbed by) operations (2,353) (2,130) 974
Income taxes (paid)/received (184) (278) (104)
Interest paid excluding leases (753) (726) (1,676)
Net cash outflow used in operating activities (3,290) (3,134) (806)
Cash flow from investing activities
(Purchase)/disposal of intangible assets (2) 11 -
Purchase of property, plant and equipment (342) (526) (948)
Sale of investment property 285 169
Sale of property, plant and equipment - - 19
Cash paid to acquire trade and assets of J&J Spirits (201) (160) (238)
Interest income - - 1
Net cash used in investing activities (260) (675) (997)
Cash flows from financing activities
Share issue 53 - -
Transactions with non-controlling interest - - (16)
Dividend paid to non-controlling interest (126) - (213)
Asset backed lending received 2,003 3,457 4,343
Repayment of asset backed lending - - (116)
Inventory secured RCF facility 1,000 1,500 500
Loan received - - -
Repayment of loan (413) (140) (487)
Repayment of leases (355) (252) (504)
Net cash from financing activities 2,162 4,565 3,507
Net increase/(decrease) in cash and cash equivalents (1,388) 756 1,704
Cash and cash equivalents at beginning of year 2,868 1,235 1,235
Foreign currency translation (81) (111) (71)
Non-controlling interest movement -
Cash and cash equivalents at end of year 1,399 1,880 2,868
Relating to:
Bank balances and short term deposits 1,389 1,880 2,868
The Artisanal Spirits Company plc
Consolidated Statement of Changes in Equity
For the period ended 30 June 2025
£000 Called up share capital Share premium account Retained earnings Cash flow hedge reserve Translation reserve Total controlling interest Non-controlling interest Total 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
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 - - - 53 - 53
Loss for the period - - (3,639) - - (3,639) (4) (3,643)
Share-based compensation - - 86 - - 86 - 86
Dividend to non-controlling interest - - - - - - (126) (126)
Other comprehensive loss - - - - (81) (81) (81)
Balance at 30 June 2025 176 15,308 (3,976) - (291) 11,216 129 11,346
Notes to the unaudited interim financial information
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 six months ended 30 June 2025 and the
comparative figures for the six months ended 30 June 2024 which are
unaudited. This financial information does not constitute statutory accounts
as defined in Section 435 of the Companies Act 2006. The external auditor's
report on the Group's annual report and accounts for the year to 31 December
2024 was unqualified and did not include an emphasis of matter statement under
s.498 of the Companies Act 2006.
This statement does not include all the information required for the annual
financial statements and should be read in conjunction with the Group's Annual
Report and Accounts for the 12 months ended 31 December 2024. The Annual
Report is available on the Group's website (www.artisanal-spirits.com/
(http://www.artisanal-spirits.com/) ).
2. Accounting policies
This condensed consolidated interim financial information has been prepared in
accordance with IAS34 'Interim Financial Reporting', the International
Accounting Standard as adopted in the United Kingdom. The accounting policies
applied in preparing the condensed consolidated interim financial information
consistent with those applied in the most recent Annual Report and Accounts
for the year ended 31 December 2024.
In this condensed consolidated financial information, the Group has applied
amendments to IFRS issued by the International Accounting Standards Board
("IASB") and endorsed by the UK Endorsement Board ("UKEB") that are
mandatorily effective for accounting periods that begin on or after 1 January
2025. The only new effective amendment is the endorsed Amendment to IAS 21 -
Lack of exchangeability (UKEB endorsed, effective 1 January 2025), which does
not result in any change to the Group's accounting policies or results.
The following new standards and amendments to existing standards have been
issued by the IASB at the reporting date and have not been early adopted by
the Froup:
• IFRS 18 - Presentation and Disclosure in Financial Statements (not yet
endorsed by UKEB, effective 1 January 2027); and
• IFRS 19 - Subsidiaries without Public Accountability: Disclosures (not
yet endorsed by UKEB, effective 1 January 2027).
3. Going concern
The financial information has been prepared on the basis that the Group will
continue as a going concern. In assessing the appropriateness of adopting the
going concern basis in the preparation of the condensed interim financial
information, the Board has considered relevant information, including annual
budget sensitivities, forecast future cash flows until September 2026,
availability of financing and the impact of subsequent events in making their
assessment.
The directors have considered in detail the impact of reasonably plausible
downside scenarios and are satisfied there is sufficient headroom in their
cashflow forecasts to continue to operate as a going concern.
Based on this assessment and taking into account the Group's and the Company's
current position, the directors have a reasonable expectation that the Group
and the Company will be able to continue in operation and meet its liabilities
as they fall due over the 12-month period from the date of this
announcement.
4. Principal risks and uncertainties
The principal risks and uncertainties affecting the Group are unchanged from
those set out in the Group's Annual Report and Accounts for the 12 months
ended 31 December 2024.
5. Dividends
No dividend was declared or paid during the period (prior period £nil).
6. Operating segments
6 months to 30 June 2025 (Unaudited) Europe Asia Americas Other Group
£'000 £'000 £'000 £'000 £'000
Revenue 6,759 1,489 1,014 417 9,679
Cost of Sales (2,616) (550) (642) (185) (3,992)
Gross Profit 4,143 939 372 232 5,687
Selling & distribution costs (2,133)
Administrative costs (5,978)
Finance costs (1,137)
Other income 2
Loss before tax (3,559)
Taxation (84)
Net loss (3,643)
6 months to 30 June 2024 (Unaudited) Europe Asia Americas Other Group
£'000 £'000 £'000 £'000 £'000
Revenue 5,455 2,149 2,021 470 10,095
Cost of Sales (2,437) (610) (473) (200) (3,720)
Gross Profit 3,018 1,539 1,548 270 6,375
Selling & distribution costs (2,810)
Administrative costs (5,489)
Finance costs (1,146)
Other income 3
Loss before tax (3,067)
Taxation (18)
Net loss (3,085)
Year ended 31 December 2024 (Audited) 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, the Chief Operating Decision Marker, does not receive a segmental
breakdown of assets and liabilities, depreciation or capital expenditure.
The Group's revenue can be analysed by product category as follows:
£'000 6 months to 6 months to Year Ended
30 June 2025
30 June 2024
31 December 2024
(Audited)
(Unaudited) (Unaudited)
Revenue from the sale of Whisky 7,360 7,744 18,291
Membership Income 689 762 1,794
Revenue from the sale of other spirits 67 33 125
Member rooms (Food & Drink) 1,218 1,046 2,218
Events & tastings 235 467 953
Other 109 43 220
9,679 10,095 23,500
Other includes revenue from sales of merchandise, rental income from
investment properties in prior years, shipping charges billed to customers,
and income from bottling services provided to third parties.
7. KPIs
The KPIs relating to SMWS membership are monitored by the Board and by
Management over a rolling twelve-month period are as follows:
To 30 June 2025 (unaudited)
LTM Period End Average Annual Revenue/ Annual Contribution(1)/ Retention Expected Years(2) LTV(3)
Members
Members
Member
Member
%
(Members)
Revenue
('000s)
('000s)
£'000
Europe 9,895 26.8 25.9 382 184 75% 4.0 744
Asia 3,475 5.1 5.3 656 433 60% 2.5 1,076
Americas 3,253 7.7 8.2 399 275 61% 2.6 711
Other 913 1.8 1.9 490 271 73% 3.6 988
Total (4) 17,536 41.4 41.2 425 238 70% 3.3 796
Change(5) -14% 3% 3% -17% -17% -1% -2% -20%
1) Contribution is a non-IFRS measure, and is defined by
management as Gross Profit less Commission paid on sales (primarily in
relation to the USA )
2) Expected Years is a non-IFRS measure, and is defined by
Management as one divided by one minus retention 1/(1-r%)
3) Lifetime Value (LTV) is a non-IFRS measure, and is defined as
Annual Contribution per member, multiplied by expected years
4) Total revenue provided excludes cask sales unrelated to
membership, Single Cask Nation sales and income from third party bottling
activity, all of which are unrelated to the membership proposition, totalling
£5,649k (12 months to 30 June 2024: £2,922k)
5) Change is shown versus the twelve-month period ended 30 June
2024.
8. Other Operating Income
£'000 6 months to 6 months to Year Ended
30 June 2025 (Unaudited)
30 June 2024 (Unaudited)
31 December 2024
(Audited)
Other Income 2 3 36
2 3 36
9. Loss on ordinary activities before taxation
£'000 6 months to 6 months to Year Ended
30 June 2025 (Unaudited)
30 June 2024 (Unaudited)
31 December 2024
(Audited)
Loss on ordinary activities before taxation (3,643) (3,067) (3,142)
Add back; Depreciation of tangible assets 860 772 1,308
Add back; Depreciation of production equipment within cost of sales 57 31 123
Add back; Amortisation of intangible assets 124 144 321
Add back; Finance Costs - loans 1,049 1,056 2,293
Add back; Finance Costs - leases 84 89 151
EBITDA (1,466) (975) 1,055
Exceptional and non-recurring costs (Note 10) 479 - -
Adjusted EBITDA (987) (975) 1,055
10. Exceptional and non-recurring costs
£'000 6 months to 6 months to Year Ended
30 June 2025 (Unaudited)
30 June 2024 (Unaudited)
31 December 2024
(Audited)
Non-recurring transaction costs 479 - -
For the period ended 30 June 2025, non-recurring costs of £479k were incurred
in relation to taking control of the Group's SMWS America Business. The cost
incurred incorporates the cost to compensate the previous supplier covers
finding and training revenue-generating employees.
11. Taxation
The results include a tax charge against the profits of the Group's Chinese
subsidiary at the rate of 25% in both 2025 and 2024, and withholding tax
charged on dividends paid in non-UK jurisdictions. There have been no
corporation taxes due against other Group companies due to carried forward
trading losses.
12. Earnings Per Share (EPS)
6 months to 6 months to 30 June 2024 (Unaudited) Year Ended
30 June 2025
31 December 2024
(Audited)
(Unaudited)
Earnings used in calculation (£'000) (3,639) (3,139) (3,320)
Number of shares 70,667,226 70,559,774 70,559,774
Basic EPS (p) (5.1p) (4.4p) (4.6p)
Fully diluted number of shares 75,259,518 73,701,200 76,058,111
Diluted EPS (p) (5.1p) (4.4p) (4.6p)
13. Property, Plant & Equipment
Land and buildings freehold Land and buildings leasehold Leasehold improvements £'000 Fixtures, fittings and equipment £'000 Casks Right of use asset Total £'000
£'000
£'000
£'000
'£000
Cost or valuation
As at 1 January 2024 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
Additions - - - 16 326 - 342
Transfer - 1 (1) - - - -
Remeasurement (9) (9)
As at 30 June 2025 678 1,442 527 5,103 5,394 5,655 18,799
Accumulated Depreciation
As at 1 January 2024 196 1,167 353 2,019 662 1,555 5,952
Charge for the year 15 53 51 844 237 579 1,779
Released on disposal - - - - - - -
As at 31 December 2024 211 1,220 404 2,863 899 2,134 7,731
Charge for the 6 months 9 24 17 431 128 315 923
As at 30 June 2025 220 1,243 421 3,294 1,027 2,449 8,654
Net book value
As at 31 December 2024 467 221 124 2,224 4,169 3,530 10,735
As at 30 June 2025 458 199 106 1,809 4,368 3,205 10,145
Investment in the period is driven by recurring Cask Wood investment £326k
(2024; £450k).
14. Inventories
£'000 As at 30 June 2025 As at 30 June 2024 As at 31 December 2024
(Unaudited) (Unaudited) (Audited)
Cask whisky & other spirits 28,079 26,482 27,810
Bottled stock 2,147 2,865 2,502
Other inventory 1,583 2,332 1,455
Total inventory 31,809 31,028 31,768
15. Financial Liabilities
£'000 As at 30 June 2025 (Unaudited) As at 30 June 2024 (Unaudited) As at 31 December 2024 (Audited)
Inventory secured revolving credit facility 21,500 21,500 20,500
Inventory financing 8,858 6,050 6,856
Accrued interest 945 - 601
Bank loans 548 1,270 951
Other loans 5 25 15
Financial liabilities 31,857 28,845 28,970
Lease liability 3,166 3,615 3,433
35,023 32,460 32,403
The revolving credit facility (RCF) 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, which is
predominantly the cask goods component of inventory assets. The total facility
available is £21.5m. The loan is interest bearing and interest is due at a
rate of 2.25% over the Bank of England base rate.
The inventory financing facility allows the SMWS subsidiary to raise finance
of 60% to 80% of current market value secured against cask spirit, up to a
total facility availability of £15.0m. 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 Company has issued a parental guarantee to
SMWS in favour of the lender.
The bank loan is secured by standard securities over the Ground Floor Premises
of the Leith property and a legal charge over the Greville Street property.
The loan is interest bearing and interest is due at a rate of 2.25% over the
Bank of England base rate. Proceeds from the sale of investment property in
the period have been used to repay a portion of the bank loans.
16. 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 not designated as hedging instruments are classified as
financial assets measured at fair value (level 2 - i.e. those that do not have
regular market pricing) through profit and loss.
Financial liabilities
Trade and other payables (excluding deferred income) are classified as
financial liabilities are 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 not designated as hedging instruments are classified as
financial liabilities measured at fair value (level 2) through profit and
loss.
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