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Tempus share tips in The Times today advising readers to buy Chapel Down.
Plus circa 10 million new shares... now who would have predicted that one.
Move to AIM confirmed for the 7th December.
I didnt want to suggest it, ut listening to their presentation a month ago, I had the feeling that the company may use the switch to Aim to fund growth, via a placing.
I'm hopefully that they don't use the AIM market for a raise/placing. There is enough equity in their wine/land that debt should be able to be raised from the back of those elements.
Well an even better harvest than I was expecting, 86% is a massive increase.
The move to AIM is welcome, I thought they may use this for an equity placing for the new winery, but they are not. I am not convinced hat they will be able to fund the £30M development from an rcf though. I think this ill be used as an interim measure with the expectation of a placing at a higher share price once they have achieved a higher share price on AIM.
Market doing what the market does best
This stock has seriously sold off since a good H1 report. Did I miss something???
They have said that an AIM listing is being looked at but they can’t really comment on it for regulatory reasons. Reading between the lines that’s definitely on the horizon and I expect sooner rather than later. I noticed these H1 results got a bit more mainstream press than usual.
Yes, that question was sidestepped.Did you also pick up on a move to the AIM market ?
All very positive! Onwards and upwards for the English wine revolution!
In line with the trading update. All in it looks very positive.
Looking forward-
'The outlook for 2023 harvest is very positive due to excellent growing conditions. No damage from frost was incurred, and the weather during the key period of flowering was favourable. We have recently begun harvesting and expect the 2023 vintage to be of an exceptional quality and with a record-breaking volume and yield. We expect it to be materially larger than last year’s excellent harvest (2022: 2,050 tonnes) as well as our previous record year of 2018 (2018: 2,173 tonnes). This will provide a platform for increased stocks of traditional method sparkling wine to deliver our 2026 business ambition. We will provide a full update when the harvest is complete.'
They just need to provide more clarity about funding for the new winery at Highland Court for another step up.
I meant £117k of stock
For a low trading stock, 20k of shares would have sat there a while until it had been fulfilled. I would need to look at it via L2, but dont have that anymore. Still, good time to top up. Im guessing someone was taking a profit.
A delayed trade, so actually it looks to have been a £117k sale that they were working through. Considering the usual volumes the price held up fairly well.
Still does not answer the why now question.
Also to keep it in perspective you are only looking at £20k of selling
I've no idea. Trading update which covers this period was good, recent sun should be a positive to quality of harvest (and probably good for sales as well).
Could be either someone taking profit (or a forced seller).The only other reason I can see there is some news leaked about the new winery which involves raising money.
Indeed. Also quite aggressive selling action. I’m tempted to load up given all the positives around the new warehouse and yard, everyone else reporting good harvests and I personally like the new marketing campaign. I just worry someone knows something I don’t hence the dumping.
Thought the same thing - presentation in 2 weeks. What should be reports of a bumper crop based on wider market reports. So lots of positives from what I can see.
Seems odd that we get news of the upcoming half year report and the price immediately drops 3%. What’s that all about?
No one is suggesting the brand be brought down to the bargain basement shelves, just a wider availability. I did purchase a few bottles of their premium Grand Reserve, which is an exceptional wine. They are ramping up the vinyard acreage, and numbers of third party vineyards, to increase the availability of their entry kevel wines, which will boost the numbers of bottles sold.
I think the last thing Chapel Down want to do is to cheapen the brand image when working so hard to promote it. If anything they want to do more high end offerings. The masses have proseco and cava. There is no way an English wine company could compete against this market as the volumes are far too small. Chapel Down want to compete with the top Champagne houses. Do any of them have offerings for the masses?
The latest Newsletter was very nice and clearly shows that the management teams have a laser focus on marketing -but- there was no mention of this years crop!
From what I have read and seen elsewhere it should be a very good harvest with the early wet weather filling the grapes and the current sun boosting the sugars . The Champagne region are predicting a bumper season with the individual grapes being far larger than in recent years.
I was hoping for a bit of commentary as to whether the cooler wetter weather in August caused any disease problems but it looks like I will need to wait until the next Newsletter -or go and visit .
No worries! Agreed re getting into other shops. It’s good that they’re getting into duty free at airports but I do think at some point they will have to move outside of the exclusively “posh” market. Perhaps once they’ve secured the brand as an up-market go-to they can start looking at distributing further to the masses with their increased output.
Thanks for the HL recommendation Spoony. Ive set up my account and have a fill order in place... cheers.