REG - Gusbourne PLC - Trading Statement

GusbourneAnnouncement

30/01/2025 07:00

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RNS Number : 1998V  Gusbourne PLC  30 January 2025

 

30 January 2025

Gusbourne Plc

("Gusbourne" or the "Company")

Trading Update

Net revenue is expected to be c. 1% up in 2024, with H2 2024 increasing by
around 4%, reversing a 3% decline in H1 2024 - supported by strong underlying
margins

Gusbourne Plc (AIM: GUS), the premium English sparkling wine producer, is
pleased to report the following unaudited trading update for the 12 months to
31 December 2024 (the "Period").

Financial highlights

·    Total net revenue((1)) for 2024 is expected to be up by c.1% (2023:
13%) at  c.£7.1m (2023: £7.1m, 2022: £6.2m, 2021: £4.2m, 2020: £2.1m)
reflecting a positive sales performance across our direct sales channels but
continued headwinds in the broader hospitality market((3)).

o  Direct to Consumer ("DTC") net revenue including the Nest, our cellar door
operations in Kent, grew by c.19% (2023: 18%) to c.£2.4m representing c.34%
(2023: 29%) of total net revenue for the year. The strong growth was driven
by: improved website sales; Nest tour and experience((2)) revenue; and direct
wine sales arising from these experiences. DTC remains our highest gross
margin channel.

o  UK Trade sales declined by c.9% (2023: grew by 13%) to c.£3.1m, due to
the difficult trading conditions experienced in the on-trade and off-trade
during the year. UK Trade sales represent c.44% (2023: 49%) of total net
revenue.  Deterioration in the UK on-trade and off-trade channels was
partially offset by new business gained through the fast-growing Corporate and
Partnerships channel.

o  International sales declined by c.3% (2023: grew by c.7%) to c.£1.4m and
are expected to account for c.20% of total net wine sales for 2024 (2023:
21%). This reflects a decline in order size from some key export markets.

 

·    Gross margin was c.66% (2023: 68%), reflecting changing price and
sales mix dynamics.

·    Full year adjusted EBITDA loss is expected to be around £0.7m
unchanged on the prior year (2023: £0.7m adjusted loss) and reflects a
continuing focus on cost control.  The adjustments include a fair value
charge on biological produce of c.£1.2m (2023: £46k), due to the smaller
than expected harvest of our high quality grapes.

·    Net debt at 31st December 2024 is expected to be approximately
£22.6m, following the extension of the deep discount bond ("DDB") with effect
from 7th October 2024, when the Original DDB was amended through an additional
subscription of £1m. This funding provides interim working capital into Q2
2025 while the Company continues to review its long-term strategic options.
The board remains very appreciative of the continued support of the major
shareholder to underpin the Company's growth strategy.

 

 

Operational highlights

·    Innovative new hybrid distribution partnership launched with Enotria
& Coe to broaden the reach of Gusbourne's wines within the UK on trade.

·    Gusbourne remains one of the most globally recognised English
sparkling wine producers, with distribution in over 37 international markets.

·    Distribution established with World Duty Free at London Heathrow and
London Gatwick airports. Other partnership agreements agreed with Somerset
House and Cowdray Park.

·    Recruited an Asia Regional Manager. Based in market, he has now
opened Thailand as the first new market, which joins our existing markets in
China, Japan, Korea, Hong Kong and Singapore.

·    Launch of several new products, including the Agrafe sparkling wine,
and the second ever vintages of our English Rosé, Pinot Meunier, Chardonnay
RS180 and Chardonnay Single Vineyard wines.

·    During 2024, the Company received numerous awards. Highlights
include:

o  Attaining a King's Award for Enterprise for International Trade, becoming
the only English Wine producer to achieve this prestigious award.

o  Being named as the only English Wine Producer in the top 50 of the World's
Best Vineyards.

o  6 medals, including 2 Best in Class and a National Champion award at the
Champagne and Sparkling Wine World Championships.

o  8 medals, including four golds, and the Best English Red Trophy at the
International Wine Challenge.

o  8 medals, including 2 golds at the Wine GB Awards.

o  7 medals, including a gold, at the Decanter World Wine Awards.

o  5 awards, including a gold at the International Wine and Spirits
Competition.

o  3 gold medals including a Judge's Selection Medal at the Texsom Awards.

 

Offer Period Update

Further to the Company's announcement on 22 July 2024 the board continues to
work constructively with Lord Ashcroft and explore various strategic options
for his shareholding. Such review includes, but is not limited to, exploring a
possible sale of Lord Ashcroft's shareholding, a strategic merger with a
similar company and a possible capitalisation of all or part of Lord
Ashcroft's debt or other actions. Further updates will be announced as
appropriate in due course.

 

Jonathan White, Gusbourne's CEO commented:

"In 2024 the Group continued to strengthen Gusbourne's position as the one of
the UK's most significant fine wine producers and made further progress
against our growth strategy, in several significant areas of the business. The
results have been achieved against a difficult macroeconomic environment,
which resulted in challenging trading conditions for the luxury goods sector
throughout the year.

Despite this backdrop, we have continued to see significant consumer demand
for Gusbourne's wines, serving more B2B and B2C customers than ever before,
and all underpinned by careful ongoing investment in the brand and the
unwavering commitment and dedication of our talented team."

((1))( )Net revenue is revenue reported by the Company after excise duties
payable

((2)) Experiences includes guests who visit our Cellar Door, The Nest, for a
vineyard tour and wine tasting experience, as well as sales of experience gift
vouchers.

((3)) In addition, £0.1m Other Revenue

For further information contact:

 Gusbourne Plc
 Jonathan White, CEO                                        +44 (0)12 3375 8666

 Katharine Berry, CFO/COO
 Phil Clark, Investor Relations

 Panmure Liberum Limited (Nomad and Sole Broker)
 James Sinclair-Ford / Ailsa Macmaster                      +44 (0)20 7886 2500
 Tom Scrivens

 Media:
 Kate Hoare / Ben Robinson / India Spencer (Houston)        +44 (0)20 4529 0549

 gusbourne@houston.co.uk (mailto:gusbourne@houston.co.uk)

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication
of this announcement, this information is now considered to be in the public
domain. The person responsible for arranging for the release of this
announcement on behalf of the Company is Katharine Berry, Chief Financial
Officer.

 

Note: This and other press releases are available at the Company's
website: www.gusbourne.com/investors (http://www.gusbourne.com/investors)

 

Note to Editors

 

Gusbourne produces and distributes a range of high quality and award winning
vintage English sparkling wines from grapes grown in its own vineyards in Kent
and West Sussex.

 

The Gusbourne business was founded by Andrew Weeber in 2004 with the first
vineyard plantings at Appledore in Kent. The first wines were released in 2010
to critical acclaim. Following additional vineyard plantings in 2013 and 2015
in both Kent and West Sussex, Gusbourne now has 93 hectares of mature
vineyards. The Nest visitor centre was opened next to the winery in Appledore
in 2017, providing tours, tastings and a direct outlet for our wines.

 

Right from the beginning, Gusbourne's intention has always been to produce the
finest English sparkling wines. Starting with carefully chosen sites, we use
best practice in establishing and maintaining the vineyards and conduct green
harvests to ensure we achieve the highest quality grapes for each vintage. A
quest for excellence is at the heart of everything we do. We blind taste
hundreds of samples before finalising our blends and even after the wines are
bottled, they spend extended time on their lees to add depth and flavour. Once
disgorged, extra cork ageing further enhances complexity. Our winemaking
process remains traditional, but one that is open to innovation where
appropriate. It takes four years to bring a vineyard into full production and
a further four years to transform those grapes into Gusbourne's premium
sparkling wine.

 

Gusbourne's luxury brand enjoys premium price positioning and is distributed
in the finest establishments both in the UK and abroad. Our wines can be found
in leading luxury retailers, restaurants, hotels and stockists, always being
aware that where we are says a lot about who we are.

 

For more information, visit www.gusbourneplc.com
(http://www.gusbourneplc.com/)

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