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As far as I can see all as expected. I did wonder if there would be higher 'exceptional expenses' both associated with the move to aim and the planning application, but at £1.2M they were not too bad.
Margins look like they will be tighter this year , we have seen this in some of the pricing and offers - it means the profits are slightly smaller, but the wine I buy is cheaper.....
I think the planning appeal is next month. It will be interesting to hear what their views are on this later today.
Sales at 33% direct to shareholders is probably around the same price as them selling to retailers. And you need to ask, how many of the shareholder purchases would be of CD products if the holders paid retail prices? Certainly noticably lower - so potentially a net gain for CD and shareholders - only losers are the retailers. For me, it is a nice perk and we do drink quality sparling wines - although trying to avoid over priced, over rated French. That along with the four vineyard tours and tasting available to a Platinum shareholder - nice to have along side the Fullers perk too.
It would be interesting to see how many shareholders are still gold rated. Having known other LTH going under the threshold of 2000 shares but still having the 33% perk…
But then, for The company does it really matter?
Lots of folks selling post christmas discount I reckon. Would surely see an uptick from retail as the weather gets warmer and everyone realises they just need to spend £1,200 to save 33% on wine purchases that they can then sell at a later date for similar buy price. Not a bad option tbh - either way Chapel Down win through increase in SP and increase in sales.
A solid company, solid market, in a good position. Undervalued?
Chapel Down currently around 20% up since moving to AIM in December - established company with good products, particularly flagship sparkling wines.
Tempus share tips in The Times today advising readers to buy Chapel Down.
£32m plans for Chapel Down winery in Canterbury face High Court legal challenge
https://www.kentonline.co.uk/canterbury/news/battle-to-block-32m-project-to-create-england-s-sparkling-301116/
Call me a party pooper, but unless you are after the shareholder perks, this one is a walking short.
Bit odd that this is dropping considering the cracking performance. Latest update is good for me too!
Can’t find any news. Was this just a cool off from the AIM listing exuberance?
With the share price at these levels I think we could see a placement at around 55 in the coming months. I think the share price has been pushed up for it and it looks a bit high having said that a bid from the likes of LVMH is a real possibility. Personally I wouldn't want that as I think Chapel Down has a bright future as they are making some fantastic wines and I can only see them only getting better with a greater understanding of the terroir.
I agree.
One of the reasons for perusing the planning was to see who was involved. They don't own the site so I guess an alternative is it could be (in part) a lease arrangement? One of the local aggregate companies has also just got planning for a concrete batching plant there and it is the site of Quinn Estates a local developer, both of whom were reportedly at an on site Canterbury Council meeting with Chapel Down last year....
My only concern is how they are going to fund the new winery. I expect a share placing will happen in the next 6 months, probably the reason for listing on AIM. I think the latest shareholder survey was a fishing exercise to gauge shareholders ideology of investment and will be a baring on how they proceed with regards to financing. I doubt it will be solely done by borrowing.
In addition there was a linked application for warehousing at the site - this seems to be separate from the winery although it is not clear if it will be used by Chapel Down (or is integral to their needs). The application was supported by Defined Wine (and a number of their customers) , a contract winemaker already on the Highland Court site.
There was another block of warehouses in the original plans but they seemed to have been dropped as the application progressed.
Probably maximum positive spin on growth but the extracts below are from the Economic Benefit paper in their planning application. Also an idea of cost.
It is expected that the development of the site will lead to a significant private sector construction investment amounting to approximately £32 million. The assumed build costs and other costs have been derived from developer estimates. As such, this level of investment is considered to be a conservative estimate and in reality, may be higher.
The new state-of-the-art winery is designed to allow Chapel Down to continue to grow. It will have an initial capacity of 3,500 tonnes of fruit and the ability to produce around 3.2 million bottles of wine per year. The company’s objective – fulfilled every year since 2009 – is to grow by at least 15% each year. At current growth rates. Chapel Down expects to continue to grow by two further phases of approximately 1,500 tonnes to take the total capacity to 6,500 tonnes, producing on average in excess of 6 million bottles per year by 2032, with a peak capacity of 9 million bottles in exceptional harvest and with further capacity to grow. After storage, the wine needs to be riddled, disgorged, bottled and labelled. This proposal therefore provides Chapel Down with the opportunity for a new packaging line that would sit alongside its wine processing facility. The existing facility at Tenterden will not close, but will remain a tourism centre and small boutique winery for very specialised wine cuvees.
As Chapel Down grows, it will need increasing storage capacity for its wines as they mature. Generally, the company’s still wines which will account for circa 45% of volume by 2032, require only 6-12 months storage. However, its sparkling wines can require storage of 3 years or more. In 2021 that will amount to storage of up to 3m bottles, whereas by 2032 that number could be 10-12m bottles. This will mean Chapel Down becoming the UK’s biggest selling premium sparkling wine brand, overtaking Moet and Chandon.
Morning all and all the best for 2024. I was bought a bottle of Chapel Down Sparkling Brut at Christmas and shared it with my missus and a couple of friends on New Years Eve. A very nice drink it was too.. Think I'll try a few more from the range and hopefully help my investment! : )
They have a large RI shareholder base, if we are all buying more wine because of the share price rise, then the profits will rise and we end up in a glorious (inebriated?) perpetual upward spiral.....
I'm in for 3.750 shares to think these were down in the mid 20's at one time, now all I need to do is register with my contract Number to get my coupon for a 33% shareholder discount just in time for Christmas, this share could be touching the 80p mark by year end.
And who can blame them! Absolutely everything looking up for this company, leading in a growing industry and insider buying cements that confidence. Onwards and upwards! Cheers!
Well, Im 39.12% up so lets hope the admission to AIM makes Chapel Down shares more accessible.
Yes, a cheeky case of Flint dry, and Baccus went into my wine store as well, just to celebrate.
Decided to dip my toe in here (metaphorically speaking!) to cheer myself up and take my mind off my other AIM investments. Wonder if they produce wine called "Fomo!"
So this was 19th April 2023. Realise the company has potential, however this might already be factored into it's price.
Chapel Down Group PLC - Tenterden, Kent-based wine maker - Chief Financial Officer Rob Smith buys 407,462 shares at 34.7 pence each, worth GBP141,389, in London between Monday and Tuesday. Smith is now interested in 2.0 million shares, a 1.3% stake.