TIDMART
RNS Number : 2870G
Artisanal Spirits Company PLC (The)
18 July 2023
18 July 2023
The Artisanal Spirits Company plc
("The Artisanal Spirits Company", "ASC" or "the Group")
Half Year Trading Update
Positive momentum in Q2 as we continue progress towards our 2024
ambition
The Artisanal Spirits Company (AIM: ART), the owner of The
Scotch Malt Whisky Society ("SMWS"), the leading curator and
provider of premium single cask Scotch malt whisky and other
spirits for sale primarily online to a discerning global
membership, announces a trading update for the six months ended 30
June 202 3.
Performance highlights
-- Revenue performance of just over GBP10m in H1-23, with growth
in Q2 of +7% (following a relatively flat Q1) and improvement on
prior year (H1-22 GBP9.9m which represented significant growth on
H1-21 of +25%).
-- SMWS membership growth of 9% year-on-year, demonstrating the
strength of our membership proposition and demand for our curated
range of premium single cask whiskies.
-- Continued strong performance in Europe and UK Venues.
-- May and June on-line trading in the UK and China was softer
than expected, however, Q2-23 in China showed positive momentum
with revenue up more than 50% on Q1-23 and membership growth of 8%
year on year.
-- In line with our strategy, we further balanced our cask
spirit holding to take advantage of opportunities (including swaps
and brokerage) to acquire old and rare spirits (including a recent
transaction at the end of H1-23) and realise value from our
existing stocks.
Continued progress against strategic objectives
-- Complet ed the final development phase of Masterton Bond :
e-fulfilment . T he site is now completing all bottling and
despatch activities for the Company and delivering improved Group
margins.
-- Further strengthened the Executive Team with the promotion of
Billy McCarter to CFO and the appointment of Chris Leggat (former
Chief Executive of Douglas Laing & Co) as the new Business
Development Director.
-- Successful ly launch ed the new f ranchise in South Korea,
achieving 300 new members on initial launch in April 2023 .
-- Signed new franchise agreement s in Malaysia and Singapore,
where we expanded our relationship with La Maison du Whisky .
Confident in delivering full year growth expectations
-- Europe and UK Venues to continue to outperform the prior
year, momentum to continue in China, and a stronger H2 in the US
and UK.
-- Further re-balancing of cask spirit holdings, including
development of member cask sales as a new revenue driver as part of
the ongoing strategic development of our membership offer to
deliver additional value from our appreciating asset base.
-- Advanced plans to establish a new subsidiary in Taiwan (the
world's third largest market for Ultra-Premium Scotch whisky) which
is due to launch in Q3-23.
-- We remain on track to deliver growth in line with full year expectations.
Andrew Dane, CEO of The Artisanal Spirits Company,
commented:
"The first half of the year was another period of strategic
delivery with improved sales and membership growth. Following a
relatively flat start to the year, momentum has increased in Q2
with strong trading across Europe, continued recovery in China and
a record performance at our UK Venues.
"SMWS membership, a key indicator of future sales growth, has
increased to over 38,700, reflecting the enduring appeal and
growing demand for our uniquely curated premium whiskies. We
continue to expand our global footprint and capture increasing
demand from enthusiasts in high-growth regions such as South-East
Asia. This includes the upcoming launch of a new subsidiary in
Taiwan, the world's third largest market for Ultra-Premium Scotch
Whisky.
"We are well positioned to deliver further growth from our
diversified end-markets and ultra-premium positioning. With
increasing commercial momentum and the flexibility of our model to
extract value from our extensive stock-in-cask, we are confident in
delivering full year expectations."
Notes
1. The Board of The Artisanal Spirits Company considers that
current consensus market expectations for the year ending 31
December 2023 are revenue of GBP25.2m (2022: GBP21.8m) and EBITDA
of GBP1.1m (2022: Adjusted EBITDA GBP0.4m)
For further enquiries:
The Artisanal Spirits Company plc via Instinctif PR
Andrew Dane, Chief Executive Officer
Billy McCarter, Chief Financial Officer
Liberum Capital Limited (Nominated Tel: +44 (0) 20 3100 2222
Adviser and Broker)
Clayton Bush
Edward Thomas
Miquela Bezuidenhoudt
Instinctif Partners (Financial PR) Tel: +44 (0)20 7457 2020
Justine Warren
Matthew Smallwood
Joe Quinlan
About The Artisanal Spirits Company
The Artisanal Spirits Company (ASC) are curators of the world's
favourite, single-cask and limited-edition whisky.
Based in Edinburgh, ASC owns The Scotch Malt Whisky Society
(SMWS) which was established in 1983 and currently has a growing
worldwide membership of over 38,000 paying members.
SMWS provides members with inspiring experiences, content and
exclusive access to a vast and unique range of outstanding single
cask Scotch malt whiskies and other craft spirits, with current
stocks sourced from over 100 distilleries in 20 countries and
expertly curated with diligence and care.
Since producing the Society's very first cask, we have created
around 10,000 different whisky releases, producing a constant flow
of unique and exciting one-of-a-kind whiskies.
With proven e-commerce reach and new brands like J.G. Thomson,
ASC is building a portfolio of limited-edition and small-batch
spirits brands for a global movement of discerning consumers -
delivering c.GBP22 million in annual revenues with over 80% of
revenue generated online and over 65% from outside the UK, with a
growing presence in the key global whisky markets including UK,
China, USA and Europe.
ASC has a pioneering business model, a substantial and growing
addressable market presenting a long-term global growth opportunity
and a strong and resilient business primed to deliver growth.
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