TIDMART
RNS Number : 5985U
Artisanal Spirits Company PLC (The)
29 March 2023
29 March 2023
The Artisanal Spirits Company plc
('Artisanal Spirits', 'ASC' or 'the Group')
Preliminary Results for the year to 31 December 2022
Another strong year of delivery, with double digit revenue and
membership growth, margin expansion and positive progress on our
clear path to sustained and growing profitability.
The Artisanal Spirits Company (AIM: ART), curators of the
world's favourite, single-cask and limited-edition spirit brands
for a global movement of discerning consumers, and owner of The
Scotch Malt Whisky Society ("SMWS"), is pleased to announce its
preliminary results for the year ended 31 December 2022. The Group
has delivered another year of significant progress in which the
strategic plan has continued to be executed and the objectives
outlined at IPO to achieve long term sustainable growth continue to
be met.
Reported today are results which slightly exceed market
consensus expectations with 19% revenue growth, 12% membership
growth and adjusted EBITDA* improved by GBP1.0 million. Alongside
this, the Group delivered double digit growth in whisky stock and
value appreciation.
Consequently, the Board remains confident in delivering its
ambition of doubling revenue between 2020 and 2024 and building on
the progress made in 2022 towards delivering sustained
profitability.
Highlights
o Continued improvement across all key financial and non-financial
metrics, demonstrating profitable growth, supported by
a loyal, growing and highly engaged global membership,
underpinned by a substantial high-quality asset base
Financial highlights:
o Revenue increased 19% to GBP21.8 million (2021: GBP18.2
million) ahead of expectations+ with significant revenue
growth in China and UK venues and strong membership growth
in Europe, Australia, the US and Japan
o Gross margin of 63.6% up by 2.1ppt from 61.5% in FY21
o Gross profit increased 23% to GBP13.8 million (2021: GBP11.2
million)
o Continuing our path to profitability, adjusted EBITDA*
in positive territory with GBP0.4 million achieved (2021:
loss of GBP0.6 million)
o Loss before tax of GBP2.1 million (2021: GBP2.7 million
loss)
o Around GBP5.5 million of further investment in both cask
spirit and wood (cGBP3m), taking the total number of casks
to 16,500 (2021: 15,300) as well as completion of the
new state-of-the-art, multi-purpose Supply Chain Facility
at Masterton Bond (cGBP2.5m)
o Stock-in-cask at 30 December 2022 increased its notional
retail sales value by 15% to approximately GBP493 million
(31 December 2021: GBP430 million)
o ASC's current whisky stocks are sufficient to satisfy
demand through to 2028 and beyond
o Well-funded to continue to invest in growth for the medium
and long term with an increased facility to GBP21.5million
with RBS agreed in H2
* Adjusted EBITDA defined as earnings before interest tax,
depreciation, amortisation and non-underlying costs (see note
7)
+ The Board of The Artisanal Spirits Company considers that
current consensus revenue expectations for the year ending 31
December 2022 are GBP21.6 million (2021: GBP18.2 million) and
consensus adjusted EBITDA expectations for the year ending 31
December 2022 is GBP0.1 million (2021: negative GBP0.6
million).
Operational highlights:
o SMWS membership growth increased by 12% to over 37,400
(2021: 28,700). This included robust growth in European
members since the launch of the new EU route to market
towards the end of FY21
o Annual contribution per member rose by 11% and retention
maintained at an all-time high level of 77%
o Lifetime value per member rose to GBP1,457 (2021: GBP1,445)
o Our member venues recovered from the disruption of the
pandemic and recently recorded a record month in December
2022
Global membership
December 2022 December % change
2021
------------------ ---------- ----------
UK 1 8,029 1 6,445 10%
------------------ ---------- ----------
US 6 ,058 5 ,207 16%
------------------ ---------- ----------
China 1 ,659 1 ,732 (4%)
------------------ ---------- ----------
Europe* 4 ,327 3 ,349 29%
------------------ ---------- ----------
Australia 1 ,659 1 ,337 24%
------------------ ---------- ----------
Japan 1 ,809 1 ,496 21%
------------------ ---------- ----------
Rest of World 3 ,875 3 ,761 3%
------------------ ---------- ----------
Total members 3 7,416 3 3,327 12%
------------------ ---------- ----------
*Europe represents direct sales markets within continental
Europe, but excludes franchise markets in Denmark and
Switzerland which are shown within Rest of World
Current trading/Post period insights
o Revenue in Q1-23 broadly flat year on year vs the exceptional
growth experienced in Q1-22. Growth phasing in line with
management expectations to deliver full year consensus
forecasts for FY2023
o YTD growth in UK & EU, offset by Covid impacted performance
in China in the early part of the year, with signs of
recovery in China now emerging
o Continued strong performance in UK venues with the record
December 2022 performance followed by new records for
January and February in 2023
o Continued membership growth +10% year-on-year
o Successful change of leadership in January 2023, with
David Ridley stepping down as Managing Director and Andrew
Dane appointed as CEO
o Further consolidation of production, with around 70,000
bottles now produced and on target to achieve full operations
at new Masterton Bond Supply Chain facility early in Q2
Andrew Dane, CEO of The Artisanal Spirits Company,
commented:
"Our ambition is to create a global, premium business which is
highly profitable and cash generative by delivering the world's
best whisky experiences.
We have a pioneering model, a long-term global growth
opportunity on which we are primed to deliver. We are making
significant strategic progress with strong membership growth and
delivery of another strong year of profitable growth supported by
improvement across all financial and operational KPIs. Over the
last year we have continued to make investment for the future in
further spirit and wood, as well as our own supply chain facility,
and while the rate of cash spend on this has peaked, we will
continue to invest, with a focus for FY23 on IT and technology to
deliver and accelerate our growth even further.
Our markets benefit from underlying structural dynamics which
have increased our addressable market. We are seeking to exploit
this opportunity by growing our international footprint, including
in South Korea and Malaysia.
The new financial year has begun well. We remain on track to
meet our 2024 revenue target of GBP30m and deliver significant
progress on our path to sustained profitability."
Sellside analyst presentation
Andrew Dane, CEO and Billy McCarter, Interim Finance Director,
will host an in person presentation for sellside equity analysts,
followed by Q&A, at 09.30 hours BST today, 29 March 2023.
Analysts wishing to join should register their interest by
contacting: artisanalspirits@instinctif.com
Investor presentation
In addition, management will host a live online investor
presentation and Q&A at 14.00 hours BST tomorrow, 30 March
2023.
The Group is committed to ensuring that there are appropriate
communication channels for all elements of its shareholder base so
that its strategy, business model and performance are clearly
understood.
The presentation is open to all existing and potential
shareholders. To register to attend, please use the link below:
https://www.equitydevelopment.co.uk/news-and-events/artisanal-fyresults-presentation-30march2023
A recording of the presentation will also be made available via
the Group's website following the webinar.
For further information, please contact:
The Artisanal Spirits Company plc via Instinctif Partners
Andrew Dane, CEO
Billy Mccarter, Interim Finance Director
Singer Capital Markets (Nominated
Adviser and Broker)
Sandy Fraser
Phil Davies
George Tzimas
Asha Chotai 020 7496 3000
Instinctif Partners (Financial PR)
Justine Warren
Matthew Smallwood
Joe Quinlan 020 7457 2020
Notes to Editors:
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 just over 37,400 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.GBP20 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.
Chair's statement
I am delighted to report that 2022 has been another year of
significant progress in which we have continued to execute the
strategic plan and objectives outlined at IPO focused on our
disciplined investment programme and range of operational
initiatives to facilitate the Group's long-term, sustainable
growth.
The global whisky market continued to deliver compound growth in
2022, maintaining a trend which has now been established for many
years with the Ultra-Premium and limited-edition market, in which
we almost exclusively operate, being a stand-out performer.
Alongside this, our member venues in the UK have benefitted from
more normalised trading for the majority of the year, with a record
December most recently bringing unique and memorable experiences to
our members in the Group's four member venues in Edinburgh (Queen
Street and Leith), Glasgow and Farringdon in London, and enabling
marketing and member recruitment events in the UK to return in
earnest.
Our model is unique and brings many benefits. Membership, which
differs markedly from subscription, is synonymous with exclusivity,
embedded customer engagement, relationships and community. This,
combined with our powerful direct-to-consumer ("D2C") e-commerce
platform, creates a global stage from which to promote and market
our limited-edition portfolio of curated whiskies and precisely
focus our sales efforts.
Alongside membership, the heartbeat of our proposition, is our
focus on unique, high-quality whiskies that we purchase, curate and
release in limited-editions. In 2022 we further added to our world
beating stock of whisky, deploying funds from the IPO to ensure
that we have forward stock cover well into the next decade.
ASC continued to substantially develop and progress its
infrastructure in 2022. We further invested some of the proceeds
raised at IPO in our own state-of-the-art, supply chain facility at
Masterton Bond, near Glasgow, to bring elements of production, cask
storage, bottling, fulfilment and distribution capabilities
in-house. Opening on time and within budget in Q4 2022, we expect
to see the subsequent anticipated margin benefits of this facility
during the course of 2023 and beyond.
The combination of our loyal and engaged members and our unique
business model mean that we have managed to increase gross margin
by over 2 percentage points, despite the impact of inflationary
pressures seen across the wider economy in areas such as labour,
raw materials, glass and storage. ASC is fortunate to have a model
with high gross margins and a product where the price is relatively
elastic.
Our brand continues to grow in awareness and desirability. This
year has seen ASC achieve more accolades and global recognition for
our outstanding, limited-edition whiskies having now won almost 300
awards in the last few years. We also continually strive to provide
a unique and immersive experience for our SMWS members.
To have grown the business in the challenging conditions of last
year is nothing short of exceptional and is testament to the
quality of our product range and wider membership proposition. To
help deliver this growth, we produced in 2022 around 1,000
different limited-edition whiskies, improved our e-commerce
platform by continuing to make it even more engaging for our
members, grew our recently launched brand, JG Thomson, and hosted
hundreds of events worldwide for membership and recruitment.
In addition, SMWS continues to expand its global footprint into
new growth markets. We furthered our international reach with a new
franchise agreement in South Korea and a new partner, Alliance
Drinks, in Malaysia - adding to our existing presence in the
fast-growing Asian markets in our sweet spot of the Ultra-Premium
Scotch malt whisky sector.
ASC is conservatively financed and has more than sufficient
funds to continue to invest in and grow the Group for the medium to
long term. In order to continue to provide additional headroom, we
have extended our revolving credit facility with RBS, demonstrating
the strength of our asset base which is now worth almost half a
billion pounds at retail prices today. Our owned stock of spirit,
ageing in casks, provides us with all of the liquid required to
satisfy our demand beyond the end of FY28.
Our team has continued to develop; without their dedication and
hard work, we would not have delivered these excellent results. In
turn, the Group strives to deliver an outstanding working
environment for its employees, together with the flexibility and
respect which enables everyone to thrive. The Board wishes to
express its heartfelt thanks to the entire ASC team.
Over the last year the Board has also continued to pursue
exemplary standards of corporate governance and we strive to drive
the ASC values across the business, particularly the uncompromising
approach to keeping the interests of our loyal SMWS members firmly
at the forefront of everything we do.
Post the year end, David Ridley and the Board agreed that he
would step down as Managing Director of ASC following six years
with the Group in that role, during which time the business
delivered sustained revenue growth and, in 2021, successfully IPO'd
on the London Stock Exchange under his stewardship. The Board would
like to thank David for his leadership and significant
contribution. He leaves ASC in excellent shape and leaves with our
very best wishes for the future.
ASC has a strong and able successor to David in Andrew Dane who
was appointed as our new CEO in January 2023. Since joining as
Finance Director in 2020, Andrew has demonstrated strong strategic
and operational credentials in addition to his proven financial
skillset. He knows the business and ASC's wider market structure
and has been instrumental in developing and implementing the
Group's growth strategy in conjunction with the wider Executive
team. These qualities equip him well to provide continued
leadership as ASC progresses its strategy to unlock its significant
future growth opportunity. Billy McCarter, formerly Group Financial
Controller, has been appointed as Interim Finance Director and a
search process, comprising both internal and external candidates,
to identify a long-term CFO is well underway. Shareholders will be
updated on the outcome of this process in due course.
Looking to the future
We have a clear strategy focussed on taking advantage of our
global opportunity and achieving and delivering sustainable,
profitable growth. This is primarily driven by developing and
growing our membership base, enhancing the breadth and depth of our
whisky stocks, further domestic and international expansion,
continued enhancement of our e-commerce platform, increasing
margins and delivering value. Our long-term future is underpinned
by fundamental structural tailwinds: convenience, premiumisation,
collectability and rarity value, as well as digitalisation, none of
which show any sign of abating.
2023 will not be without its challenges. However, we are
optimistic that economic conditions will improve and confident that
our business will navigate whatever headwinds we may face. That
said, we benefit from a diversified and global membership who are
resilient and mostly affluent. We remain confident that they will
continue to enjoy the exclusive benefits and products that
membership of SMWS affords.
We submitted our response to the Scottish Government
consultation on restricting alcohol advertising and promotion. We
share the Scotch Whisky Association's concern and support the view
that the Scotch whisky industry already follows a robust marketing
code which regulates how brands are advertised globally.
Similarly, we agree with the Scotch Whisky Association that
"many concerns remain unanswered" in relation to the proposed
Deposit Return Scheme in Scotland. While we continue to prepare for
its scheduled launch in August of this year, we share the wider
industry concerns around the impact of this scheme.
We are increasingly well positioned to take advantage of our
global opportunity and to achieve our self-imposed goal of doubling
revenue from 2020 to 2024. We therefore anticipate further revenue
growth in 2023 as we pivot towards growing and sustainable
profitability. As we do this, we are committed to doing so
responsibly, working within the Scotch Whisky Association's
Sustainability Strategy, focused on striving for best practice. ASC
is on a journey in this regard, and we continuously seek to
improve.
We continue to see a significant opportunity in the American
Whiskey segment for ASC. The Board has agreed that some additional
time is required to evaluate the various options open to us to
ensure we optimise both the structure and our approach in this
exciting market. Our enthusiasm for the American Whiskey
opportunity remains and we look forward to updating shareholders on
our plans in due course.
We have invested in our business and have whisky stocks to
satisfy demand into the next decade hedging inflationary costs in
our supply chain. Our cash intensive investment phase has now
peaked as we enter into a new stage and move towards positive
unadjusted EBITDA for 2023 and positive profit before tax for 2024
and remain well positioned for further profitable growth
thereafter.
I am grateful to all shareholders for their continued support in
a difficult year for the markets. ASC is a long- term business and
whilst I believe we have played our part to date by consistently
delivering on the goals and aspirations set out at IPO, we will
continue to be totally focussed on endeavouring to do so again this
year and beyond as we grow this unique business.
Chief Executive's Review
Another strong year of delivery
In our first full year as a listed business, we have
successfully delivered on our promises. We have achieved both
strategic development, most notably the new supply chain facility
at Masterton Bond in Scotland, as well as an impressive financial
performance, once again ahead of market expectations, with 19%
revenue growth, growing margins and positive progress on our clear
path to profitability.
We have a pioneering model, a long-term global growth
opportunity and we are primed to deliver. We are making significant
strategic progress with strong membership growth and delivery of
another year of profitable growth supported by improvement across
all financial and operational KPIs. Over the last year we have
continued to make investment for the future in further spirit and
wood, as well as our own supply chain facility, and while the rate
of cash spend on this has peaked, we will continue to invest, with
a focus for FY23 on IT and technology to deliver and accelerate our
growth even further.
Delivering profitable growth
I have had the pleasure of helping to build our current strategy
and help set our clear ambition to double revenue between 2020 and
2024. It is now my privilege to have the opportunity to lead the
business towards achieving that ambition and to report on the
success to date on delivering that.
In 2022, we have made good progress, achieving revenue growth
ahead of market expectations and adjusted EBITDA improving by
GBP1.0 million.
We continue to deliver against our strategic framework and
successfully execute our strategy to build a unique portfolio of
curated, limited-edition spirit brands for a global movement of
discerning consumers, operating in a significant growing market
globally with underlying structural change taking place. We also
continue to meet, and in many cases exceed, the financial metrics
and KPIs put in place at the time of the IPO.
To achieve our ambition, we operate a pioneering model with a
loyal and growing membership who can exclusively purchase unique,
award-winning, limited-edition whiskies. We aim to innovate
relentlessly and deliver our members an outstanding experience
through our direct to member platform, generating rich data which
provides the Group with detailed customer insight to continually
improve and target ever more effectively.
Underlying structural dynamics growing the addressable
market
ASC is positioned to benefit from fundamental changes which are
driving significant growth within the spirits industry. Scotch
whisky remains a highly desirable category on the international
stage. We operate primarily in the global Ultra-Premium segment
which has seen substantial growth over the last decade and
continues to do so as repeatedly reported by the leading spirit
brands.
Trends such as premiumisation and experiential demand - with
consumers seeking authenticity, status and exclusivity, the drive
for increasing convenience and continued global digitalisation -
combine to play to ASC's strengths as a limited-edition producer
with our D2C model.
As these trends continue, this underpins the growth of the
Group's addressable market. The global Scotch whisky market for
Ultra-Premium price points (GBP35/bottle and above) was valued at
$7.6 billion in 2021 having grown by 32% since 2020. Of this, $5.8
billion is in markets where we already have a well-established
presence. In these markets, ASC has a market share of only 0.3%
currently.
Strong SMWS growth
Revenue continued to grow impressively underpinned by the growth
in global membership, combined with increasing spend per
member.
SMWS Membership
This year saw us grow global membership of SMWS once again, up
12% to 37,400 at the year end. A further benefit of our global
reach is that we have a diversified geography with markets
performing at different rates of maturity and growth. 2022
experienced particularly strong membership growth in Europe,
Australia, the US and Japan. This was driven by a material
acceleration of membership sign-ups supported by strong returns on
marketing campaigns, as well as effective targeting in those
territories to potential new members.
This was also supported by high levels of loyalty from our
existing members, delivering recurring revenues with retention
rates maintained at last year's historically high level of 77%.
SMWS Revenue
From a revenue perspective, there were standout performances for
a few areas in the year.
Firstly China, where revenue grew 28% despite the very strict
Covid lockdown restrictions which impacted the business - in the
context of membership recruitment in particular from April 2022
onwards. This result is testament to both the size of the
opportunity that exists in this geographic market, as well as the
outstanding quality of delivery and service provided by the ASC
team.
Secondly, a strong performance from the UK member venue rooms
helped drive the 27% revenue growth in the UK. The Group's four
outstanding member rooms - in Edinburgh (Queen Street and Leith),
Glasgow and London - rebounded following the easing of UK Covid
restrictions in the early part of 2022, finishing the year strongly
with record sales in December.
Thirdly, I was pleased to see the positive response from
European members following the establishment of a warehouse in
mainland Europe in December 2021 to mitigate the Brexit-related
logistical challenges which occurred during 2021. This helped to
deliver impressive membership growth of 29% (the fastest of any
market) and 18% revenue growth.
In the US, membership grew strongly in the period (up by 16%),
albeit market depletions were down slightly year on year as the
level of bottle sales per member unsurprisingly reduced from the
higher levels experienced during the Covid lockdown periods of
2020/21 to their pre-pandemic levels. The revenue effect of these
was offset by the timing of shipments and positive movements in FX
rates meaning that the total value of revenue grew by 6% in the
period.
SMWS International Expansion
Over the past year we have continued to enhance and extend our
international reach in some of the fastest growing markets in the
world to take advantage of growth opportunities in those
geographies. This follows our entry into Mexico and South Africa in
recent years.
In October 2022, the inaugural franchise agreement in Korea, the
world's 10th largest market for Ultra-Premium Scotch malt whisky,
was signed with F.J. Korea (a market leading distributor). We also
strengthened our presence in Malaysia with a new partner, Drinks
Alliance, which provides a new route to market and reinforces our
footprint in that region.
The Group will continue to seek opportunities to extend the
international reach of SMWS with further partnerships and franchise
agreements.
First year of trading for J.G. Thomson
We continued to grow our new suite of superior quality spirit
and complementary brands under the heritage moniker of J.G. Thomson
which is available both to SMWS members and through selected
independent retail channels.
The first full year of J.G. Thomson helped deliver over
GBP200,000 of additional revenue to the Group, with most of that
arising in H2 through initial exports to La Maison du Whisky in
France, as well as cross sales to SMWS members.
We continue to market and build the brand's presence through
innovative events such as Fringe by the Sea, an Arts Festival in
North Berwick, and at Hamlet by Ian McKellan in partnership with
influencers such as Bross Bagels.
The American Whiskey Opportunity
We continue to see a significant opportunity in the American
Whiskey segment for ASC. To that end, we remain focused on
exploring the various options open to us to enter and maximise our
opportunity in this exciting market. In order to take the right
approach to launch and sustainably grow our operations in this
market for the long term, the Board has agreed that some additional
time is required to evaluate the various options open to us.
Whilst this will require more time than originally anticipated
to ensure we optimise both the structure and our approach; one
positive impact of this extension is that short-term EBITDA drag
which a launch would be expected to incur would be avoided in FY23.
Our enthusiasm for the American Whiskey opportunity remains and we
look forward to updating the market on our plans in due course.
Investing for Growth
ASC is financially strong and fully funded to deliver its stated
ambitions. Its balance sheet is primarily supported by its whisky
stock, and we were delighted to agree the extension to the
inventory secured RCF facility with RBS in December 2022 which
provides additional flexibility with regards to our investment in
our strategic priorities.
Overall, we have now materially deployed the IPO proceeds as
planned, with key investments in the supply chain facility at
Masterton Bond, continued investment in expansion of our spirit and
wood stocks and marketing spend to grow membership, as well as
ongoing new brand development such as the launch of J.G. Thomson
and exploration of the American Whiskey opportunity and market
expansion in Asia in particular.
The Group has accumulated - and is further investing in - our
unique range of outstanding single cask Scotch malt whiskies. In
2022 around GBP3 million was invested in new whisky spirit and wood
stocks, increasing the total number of casks to 16,500 (15,300 at
the end of 2021) and investing in more ex-sherry casks which now
represent 25% of all production. The acquisition of new spirit and
the continued appreciation of in-cask whisky will stand us in good
stead to satisfy demand in future years, as well as providing a
substantial inflation hedge against future increases in the cost of
whisky. Our current whisky stocks are sufficient to satisfy our
projected demand beyond the end of 2028 and 75% of demand well into
the next decade. Stock in cask at the year-end had an estimated
retail value of approximately GBP493 million (31 December 2021:
GBP430 million), representing further value appreciation of a
further 15% over the period.
In Q4 2022 we began the initial production phase at our new
Masterton Bond multipurpose supply chain facility near Glasgow.
With bottling operations commenced, c20,000 bottles were produced
prior to the year end. Since then, production has continued to
increase with c.70,000 bottles produced as at the date of this
report. The facility will provide production, cask storage,
fulfilment and distribution of the Group's whisky and other spirit
products in due course. We are already beginning to benefit from
the improved operating margins (anticipated to be c.2% this year)
from this state-of-the-art facility.
The path to profitability
During the course of 2022 we have made significant investments
across our business, have a clear strategy to drive profitable
growth and anticipate growing EBITDA through 2023 and generating
profit before tax in 2024, a goal set at the time of IPO. Continued
growth in membership, prudent and selective investment in
interesting and rare whisky spirit and wood, conservative financing
and international expansion are the embedded disciplines for growth
and sustained future profitability.
Particularly pleasing has been the growth in gross margin which
has been faster than forecast, reflecting both underlying
improvements in the cost structure (despite wider economic
pressures) - supporting the strong inflation hedge provided by
ASC's substantial spirit stock - as well as improvements in pricing
driven by both product and market mix.
Overall, this has enabled us to deliver a GBP1.0 million
increased in adjusted EBITDA, equating to an equivalent incremental
EBITDA margin of almost 30%, lending further support to the
significant profit potential of the Group.
Our talent
The Group's key focus is people development and living ASC's
values and the team has come together well following the influx of
new staff pre and post IPO. We have a strong culture which develops
pride in what we do and respect for others in the business. While
we are delighted with the results of our employee survey during the
year (and in particular the employee engagement index score of 81),
we recognise there is always more to be done in this area and we
intend to continue to further develop and implement the talent and
organisational development plan originally launched in 2021.
Current trading and outlook
Whilst still early in the year, we remain on track to meet our
expectations for the full year. Revenue to date has seen growth
across many territories including UK and Europe albeit this was
offset by the impact of continued Covid in China in Q1 . Overall,
revenue is broadly flat, lapping a record Q1 in 2022, and we
anticipate further strong growth in sales in the second half.
Encouragingly, membership has continued to grow, including
increasing momentum in China most recently, and both January and
February 2023 have seen venues continue to trade at record
levels.
The Group will benefit from GBP220,000 (net of fees) in relation
to R&D tax credits received in January of this year for 2020
and 2021. We remain on target for the Group's new Masterton Bond
supply chain facility to be fully operational early in Q2.
We remain focussed on developing and progressing our business
through the continued growth of membership globally, building a
sustainable platform for the future and driving ASC towards
profitability which should be achieved in the near-term. We will
continue to benefit from the structural tailwinds of
digitalisation, premiumisation and convenience which underpin our
unique business model and the continued global growth of the
Ultra-Premium whisky segment.
Finance Director's Review
Continued Growth Driving Aim of Near-term Profit Delivery
Another year of exceeding performance expectation and investing
in the future growth of the business
Strong 2022 performance as the basis for future years
delivery
It is a pleasure and honour for me to step into the Finance
Director role on an interim basis, following Andrew's move into the
CEO role as David Ridley leaves the business. We wish him all the
best in his next endeavour. Overall, 2022 was another strong year
of performance for the Group with the headlines showing we have
exceeded market expectations on revenue and ensuring as a result
that we deliver the associated EBITDA profit expectation. Another
period of delivery gives us confidence we are on track to continue
to meet our future profit objectives in the near to medium
term.
To further support the strategy long-term, we have made
significant further investment during the year in cask spirit and
we also reached a major investment milestone in completing the
fit-out and operational commencement of our new self-contained
Supply Chain Facility, Masterton Bond. The completion, on time and
within budget, allows us to achieve not only margin improvement in
the near-term with regards to operational costs, but also allows us
to take control of operations from third parties.
Continued improvement in Group financial performance
As a Group, we have delivered revenue, gross profit, adjusted
EBITDA and membership growth in the year, this momentum serving to
ensure we deliver on the expectations of our growth journey over
the next few years.
Revenue growth of 19%, at GBP21.8million which was above
expectation, has resulted in a step-change delivery at an adjusted
EBITDA level, our gross margin improvement of 210 basis points a
key factor as we manage costs and drive profitable sales. This
gives us significant confidence that alongside our strategic plans,
we can achieve profit in the near-term as expected. Our adjusted
EBITDA achievement excludes pre-operational non-underlying costs
within our Income Statement in 2022, Masterton Bond and American
Whiskey costs, which together represented a GBP0.6 million
investment in the year.
Membership has grown 12% over the year and we remain committed
to ensuring our membership proposition is strong and always looks
to seek improvement and meet member expectations. A maintained
retention rate is pleasing in year, and a key focus of our
strategic priorities are geared toward improvement of this -
ensuring members feel engaged in what we offer, part of a 'whisky
club' that has community and togetherness at its heart.
Membership has performed strongly across all regions, with
significant growth in Europe and the US, 29% and 16% respectively,
supported by 10% in the UK and 5% across Asia. In the US, we have
seen the growth come from a 900bps improvement in retention and
within the UK the growth is mainly driven by new members. Europe is
benefitting from the improved supply following Brexit, and as a
result membership has increased across new and renewing
members.
Growing Global Revenue
United Kingdom
As the home of the Scotch Malt Whisky Society, the UK remains
our longest standing and largest global market, with around half of
total membership and around a third of global revenue. In the UK we
have a truly omni-channel approach, with four outstanding member
rooms complimenting the online presence at www.smws.com . Growth
within the UK was a very strong 27%, predominantly driven by our
venues as we recovered from the restrictions of Covid. Online sales
continued with another strong year-on-year improvement of 5%, with
delivery across the region of GBP7.4 million (2020: GBP5.8
million). As a result, the UK business has reinforced its position
as the biggest individual market within the Group having
contributed 34% of revenue in the year. Membership also grew double
digit at 10%.
Asia
The Asian markets continue to be a key area of growth for the
business, with China now our second largest overall market after
the UK. This is despite the fact that SMWS China only celebrated
its five-year anniversary of launch in November 2022. This is a
testament to both the size of the opportunity that exists there, as
well as the outstanding quality of delivery and service provided by
the team.
China revenue grew by 28% in the year, representing the fastest
growth of any market. However this growth was delivered in the face
of some very challenging conditions in the country with the rate of
growth slowing in H2 as a result of the continued "Zero Covid"
policy which was pursued until the tail end of 2022. This impacted
both logistics in Q2-22 when some of the strict lockdown periods in
Shanghai began, and also the whisky festivals which would normally
be a key source of recruitment, but which were cancelled in 2022.
This meant that after a record period of membership growth in 2021,
and a strong start to 2022, membership at 31 December 2022 was
similar to 31 December 2021 at around 1,700 members.
The wider Asian market growth was supported by performance in
Japan with double digit revenue growth supported by over 20%
membership growth in the year, delivered through both growing
recruitment and improvements in retention to an outstanding level
of 85%, reflecting the extreme focus by the local team on member
satisfaction.
More broadly, we were pleased to announce in October that SMWS
had signed a new franchise agreement with F.J. Korea ("FJK") in
South Korea, Asia's fourth largest economy and the world's tenth
largest market for Ultra-Premium Scotch whisky. Alongside that we
entered a new partnership agreement in Malaysia, providing a new
route to market (the 12(th) largest market within the global
Ultra-Premium Scotch malt whisky sector) and further strengthening
the Group's geographic footprint in South-East Asia.
North America
The North American market is led by the United States which
represented around 20% of total global sales for the year.
Membership levels in the US grew strongly in the period, up by 16%
in the period and breaking through the 6,000 member milestone.
However, in market depletions were down slightly year on year as
the levels of bottle sales per member fell from the higher levels
during the Covid lockdown periods of 2020/21 to their pre-pandemic
levels. The revenue effect of these was offset by the timing of
shipments and positive movements in FX rates meaning that the total
value of revenue grew by 6% in the period. More generally,
performance in the Canadian franchise was positive, with sales up
29% and with a very modest contribution from the relatively new
Mexican franchise which began operating fully in 2022.
Europe
2022 performance built on the progress made at the tail end of
2021- with the establishment of a warehouse in mainland Europe,
enabling the Group to mitigate Brexit-related logistical challenges
and reduce shipping and delivery times to EU members. This new
set-up operated throughout 2022 with the dramatic reduction in
delivery times and increase in level of online and in person
support for membership recruitment and engagement helping to
deliver 29% membership growth in the year (the fastest rate of any
market) and helping to deliver 18% revenue growth, with the growing
number of members also increasing their average spend and
contribution in the period.
Australia
Strong performance in the Australian market was led by 24%
membership growth in the period, supported by some very strong
campaign activations which have now been replicated both in
Australia and other markets. This helped to deliver double digit
revenue growth in the period, as well as giving a strong basis for
further growth in future periods.
Cost base maturation ensuring gross profit delivery and growth
delivers EBITDA
As we have invested in our cost base over recent years to
deliver growth, we have built a strong and experienced team within
the business who have ultimately helped us achieve our growth to
date, and although we will always look to invest in skilled
employees who bring attributes and new ways of thinking, that
investment level is starting to mature. Payroll costs in the year
(including share options) were GBP6.0 million (2021: GBP4.5
million). Significant further investment has been made in a new
Technology Team and continues to be made on the digital
transformation of the business which will be instrumental in
helping us achieve the next stage of our strategic
opportunities.
As we enter 2023, our payroll base is maturing, opportunities
being specific and tactical as opposed to the last few years of
growth and expertise requirement. We will continue to ensure we
invest wisely in Advertising and Promotional spend ("A&P").
This helps to ensure we manage costs within a high inflation
environment, supporting revenue and EBITDA delivery ambitions.
A&P spend saw a 9% year on year increase representing good
management and return against the backdrop of our 19% revenue
increase and GBP1.0 million additional adjusted EBITDA delivery.
Other major costs within the year include Share Options costs of
GBP0.2 million (2021: GBP0.3 million), IT and Systems Costs of
GBP0.7 million (2021: GBP0.6 million) as we continue to invest and
improve in our IT infrastructure to deliver strategic priorities
and drive efficiencies, including the new Masterton Bond Supply
Chain facility, which itself had GBP0.3 million of pre-operational
cost expensed within the year. Earnings per share at the end of the
year (2.9p) is an improved closing of 2021: (5.9p) our growth and
EBITDA conversion delivering on our journey to EBITDA and
shareholder return over the medium-term.
Initial spend on the American Whisky opportunity of GBP0.3
million spend in year (2021: zero) has given the business a good
initial grounding on which to build as we consider our next
move.
Share Incentive Schemes
We have followed up the award of share options in 2021 with
further options within the scheme. In 2022, 139,000 new share
options were issued, consisting of time vesting options for central
office and venue staff, with senior management options all
performance related, based on Revenue, EBITDA and Share Price.
Further awards under the framework of the existing scheme, with new
targets for the forthcoming years, are expected this year.
Balance sheet strength driven by continued cask investment and
asset backed funding
Our balance sheet remains strong, with net assets of GBP22.0
million supported by further investment in year in spirit and wood
of around GBP3 million, as well as around GBP2.5 million on our
self-contained multi-purpose supply chain facility at Masterton
Bond.
This further investment utilised our RCF facility as planned, as
a result net debt at the end of 2022 at GBP14.7million, considered
well manageable within the remit of our strong asset backed balance
sheet, cask spirit stock holding at GBP23million.
These investments during the year give us a strong foundation to
allow us to meet our future strategic priorities, delivering
greater EBITDA and cash conversion as we hold stock coverage for
sales through to 2028, and look to drive efficiencies across the
supply chain leading to better cost of our the finished product
through to the end consumer.
Improved inventory secured RCF with Royal Bank of Scotland
(RBS)
In Q4 the Group extended its agreement with RBS to increase its
existing revolving credit facility to GBP21.5 million (previously
GBP18.5 million) and also lengthened the term of the commitment
until December 2025, broadly extending the term by two years and on
better terms saving the Group c. GBP40,000 per year. The RBS
facility provides additional flexibility to expand and grow all
aspects of the business including membership, whisky stocks and
international reach. As at the end of 2022, the Group had GBP5
million of unutilised headroom on this facility.
Cash flow driving investment
2022 has been another year of significant investment, delivering
business growth beyond expectations and plans, with around GBP5.5
million invested in spirit and other strategic opportunities,
primarily the Masterton Bond supply chain facility completion,
resulting in our ability to not only ensure coverage of stock until
2028 but also achieve our offering at a more productive and
efficient, self-controlled bottling facility, driving gross margin
benefits to the business for future return against investment.
As a result, during 2022 we have drawn down as planned around
GBP10 million against our RCF agreement, as the source for the
investment required. Our stock position has grown, as we control
risks against changes in supply chain with Masterton Bond and a
short stock position evidenced in earlier years. Looking forward,
the level of cash investment, in particular in spirit and wood, has
peaked and the business is expected to begin to generate cash
inflows as profitability continues to grow.
Change of External Auditors
Following a number of years with our previous auditors, and our
continued maturity, we appointed new external auditors in May 2022,
Mazars LLP.
Looking ahead to 2023
We remain positive about our ability to meet our strategic goals
in the short, medium and long-term following our achievements this
year.
Our investment in spirit and supply chain safeguards our ability
to deliver to our growth plans and, at the heart of all of this,
deliver further improvements on our EBITDA and cash conversion,
which we have seen in 2022 with regards to the revenue growth.
Our strategy is working, and we will maintain our confidence in
that strategy, ensuring we continue to understand and invest in our
membership proposition, achieving new and improved routes to
market. This will include 2023 opportunities in Korea and Taiwan,
as well as growth in key markets, particularly the US and China.
The addressable market is significant ($5.8 billion) and growing,
with over 50% of this addressable market in China, US, Taiwan and
the UK. We are well placed to take advantage of this sizable and
expanding market and have the strategy to deliver that growth and
look forward to continuing to deliver that profitable growth
ambition.
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2022
2022 2021
Notes GBP'000 GBP'000
=================================================== ===== ======== ========
Revenue 6 21,781 18,237
Cost of sales (7,936) (7,026)
--------------------------------------------------- ----- -------- --------
Gross profit 13,845 11,211
Selling and distribution expenses (5,503) (4,046)
Administrative expenses (9,875) (9,694)
Finance costs (576) (348)
Other income 9 37 160
--------------------------------------------------- ----- -------- --------
Loss on ordinary activities before taxation 7 (2,072) (2,717)
Taxation 11 359 (631)
--------------------------------------------------- ----- -------- --------
Loss for the year (1,713) (3,348)
Other comprehensive income:
Items that may be reclassified to profit
or loss:
Movements in cash flow hedge reserve 31 (113)
Movements in translation reserve (59) -
Tax relating to other comprehensive loss - 23
--------------------------------------------------- ----- -------- --------
(28) (90)
--------------------------------------------------- ----- -------- --------
Total comprehensive loss for the year (1,741) (3,438)
=================================================== ===== ======== ========
Loss for the year attributable to:
* Owners of parent company (2,010) (3,653)
* Non-controlling interest 297 305
--------------------------------------------------- ----- -------- --------
(1,713) (3,348)
=================================================== ===== ======== ========
Total comprehensive loss for the year attributable
to:
* Owners of parent company (2,038) (3,743)
* Non-controlling interest 297 305
--------------------------------------------------- ----- -------- --------
(1,741) (3,438)
--------------------------------------------------- ----- -------- --------
Basic EPS (pence) 12 (2.9p) (5.9p)
--------------------------------------------------- ----- -------- --------
Diluted EPS (pence) 12 (2.9p) (5.9p)
=================================================== ===== ======== ========
Consolidated Statement of Financial Position
As at 31 December 2022
2022 2021
Notes GBP'000 GBP'000
====================================== ===== ======== ========
Non-current assets
Investment property 405 391
Property, plant and equipment 13 10,362 8,377
Intangible assets 2,249 2,420
-------------------------------------- ----- -------- --------
13,016 11,188
Current assets
Inventories 14 28,303 23,719
Trade and other receivables 3,714 2,968
Cash and cash equivalents 2,331 2,012
-------------------------------------- ----- -------- --------
34,348 28,699
-------------------------------------- ----- -------- --------
Total assets 47,364 39,887
-------------------------------------- ----- -------- --------
Current liabilities
Trade and other payables 3,703 3,949
Current tax liabilities 405 277
Financial liabilities 15 357 392
Lease liability 360 259
Forward currency contracts - 31
-------------------------------------- ----- -------- --------
4,825 4,908
-------------------------------------- ----- -------- --------
Net current assets 29,523 23,791
Non-current liabilities
Financial liabilities 15 16,984 6,796
Lease liability 2,959 3,332
Deferred tax liabilities - 563
Provisions 580 407
-------------------------------------- ----- -------- --------
Total non-current liabilities 20,523 11,098
-------------------------------------- ----- -------- --------
Total liabilities 25,348 16,006
-------------------------------------- ----- -------- --------
Net assets 22,016 23,881
====================================== ===== ======== ========
Equity
Called up share capital 174 174
Share premium account 14,997 14,938
Translation reserve (76) (17)
Retained earnings 6,685 8,505
Cash flow hedge reserve 8 (23)
-------------------------------------- ----- -------- --------
Equity attributable to parent company 21,788 23,577
====================================== ===== ======== ========
Non-controlling interest 228 304
Net assets 22,016 23,881
====================================== ===== ======== ========
Consolidated Statement of Cash Flows
For the year ended 31 December 2022
2022 2021
Notes GBP'000 GBP'000
============================================== ===== ======== ========
Loss for the year after tax (1,713) (3,348)
Adjustments for:
Taxation charged (359) 631
Finance costs 494 348
Interest receivable (4) (5)
Movements in provisions 10 3
Share-based payments 190 216
Investment property fair value movement (14) -
Lease interest 82 -
Depreciation of tangible assets 1,000 671
Amortisation of intangible assets 259 271
Movements in working capital:
(Increase) in stocks (4,496) (2,068)
(Decrease)/increase in debtors (746) (929)
(Decrease)/increase in creditors 240 252
---------------------------------------------- ----- -------- --------
Cash absorbed by operations (5,057) (3,958)
Income taxes paid (75) (360)
Interest paid (494) (347)
---------------------------------------------- ----- -------- --------
Net cash outflow used in operating activities (5,626) (4,665)
---------------------------------------------- ----- -------- --------
Cash flow from investing activities
Purchase of intangible assets (88) (92)
Purchase of property, plant and equipment 13 (2,911) (1,101)
Purchase of JV China share (359) -
Interest receivable 4 5
---------------------------------------------- ----- -------- --------
Net cash used in investing activities (3,354) (1,188)
---------------------------------------------- ----- -------- --------
Cash flows from financing activities
Share issue 59 14,878
Asset backed lending repaid - (14,823)
Inventory secured RCF facility 15 10,300 6,200
Dividends paid (373) (385)
Loan received - 93
Repayment of loan (148) (145)
Repayment of leases (354) (139)
---------------------------------------------- ----- -------- --------
Net cash from financing activities 9,484 5,679
---------------------------------------------- ----- -------- --------
Net increase in cash and cash equivalents 504 (174)
Cash and cash equivalents at beginning of
year 2,012 2,176
Other reserve movements - 10
---------------------------------------------- ----- -------- --------
Non controlling interest movement (185) -
---------------------------------------------- ----- -------- --------
Cash and cash equivalents at end of year 2,331 2,012
============================================== ===== ======== ========
Relating to:
Bank balances and short term deposits 2,331 2,012
============================================== ===== ======== ========
Consolidated Statement of Changes In Equity
For the year ended 31 December 2022
Cash
Called Share flow Total
up share premium Retained hedge Translation Other controlling Non-controlling Total
GBP'000 capital account earnings reserve reserve reserves interest interest equity
================ ======== ======== ======== ======== =========== ======== =========== =============== =======
Balance at 31
December
2020 135 99 12,544 67 (15) - 12,830 163 12,993
---------------- -------- -------- -------- -------- ----------- -------- ----------- --------------- -------
Issue of share
capital 39 15,579 - - - - 15,618 - 15,618
Share issue
direct
costs - (740) - - - - (740) - (740)
Loss for the
period - - (3,653) - - - (3,653) 305 (3,348)
Adjustment to
non-controlling
interest - - (252) - - - (252) 252 -
Share-based
compensation - - 216 - - - 216 - 216
Dividend paid - - - - - - - (280) (280)
Investment in
subsidiary - - (350) - - - (350) (136) (486)
Other
comprehensive
gain/(loss) - - - (90) (2) - (92) - (92)
---------------- -------- -------- -------- -------- ----------- -------- ----------- --------------- -------
Balance at 31
December
2021 174 14,938 8,505 (23) (17) - 23,577 304 23,881
================ ======== ======== ======== ======== =========== ======== =========== =============== =======
Issue of share
capital - 59 - - - - 59 - 59
Loss for the
period - - (2,010) - - - (2,010) 297 (1,713)
Share-based
compensation - - 190 - - - 190 - 190
Dividend paid - - - - - - - (373) (373)
Other
comprehensive
gain/(loss) - - _ 31 (59) - (28) - (28)
---------------- -------- -------- -------- -------- ----------- -------- ----------- --------------- -------
Balance at 31
December
2022 174 14,997 6,685 8 (76) - 21,788 228 22,016
================ ======== ======== ======== ======== =========== ======== =========== =============== =======
Notes to the Financial Statements
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 twelve months
ended 31 December 2022 and the comparative figures for the twelve
months ended 31 December 2021.
The Group's consolidated financial statements have been prepared
on a going concern basis under the historical cost convention; in
accordance with UK adopted International Accounting Standards.
This statement does not include all the information required for
the annual financial statements and should be read in conjunction
with the Annual Report & Accounts.
The financial information set out above does not constitute the
company's statutory accounts for 2022 or 2021. The statutory
accounts for 2021 have been delivered to the Register of Companies,
and those for 2022 will be delivered in due course. The independent
auditor has reported on these accounts, their reports were (i)
unqualified, (ii) did not draw attention to any matter by way of
emphasis without qualifying their report and (iii) did not contain
a statement under section 498 (2) or (3) of the Companies Act
2006.
This announcement was approved on behalf of the Board on 29
March 2023.
2) Accounting Policies:
The accounting policies applied in preparing the condensed
consolidated financial information are the same as those applied in
the preparation of the Annual Report and Accounts for the year
ended 31 December 2022, and those applied in the preparation of the
Group's Historical Financial Information included within the
Company's Admission Document.
3) Going concern:
The Directors are, at the time of approving the financial
statements, satisfied that the Group and Company have adequate
resources to continue in operational existence for a period of at
least 12 months. Thus, they continue to adopt the going concern
basis of accounting in preparing the financial statements.
The Group meets its day-to-day working capital requirements from
a revolving credit facility of GBP21.5m together with cash
balances. The revolving credit facility was renewed in December
2022 and is not due for renewal until January 2025. The revolving
credit facility has quarterly leverage and covenants relating to
minimum stock holding level as a percent of the facility drawn
down, the 'springing test', which requires 135% of eligible
inventory holding against the RCF balance, reviewed monthly.
Secondary covenants of EBITDA and Net Assets (excluding
Intangibles) exist if the springing test isn't met. The Group did
not make use of government backed borrowing facilities such as the
Coronavirus large business interruption loan scheme.
The Group remained compliant with its banking covenants
throughout the year to 31 December 2022.
In the context of the above, the directors have prepared cash
flow forecasts for the period to 31 April 2024 which indicate that,
taking account of reasonably plausible downside scenarios, the
Group will have sufficient funds to meet its liabilities as they
fall due for that period.
The Directors have assessed the potential on-going impacts of
the Covid-19 pandemic and have modelled scenarios as follows:
1. A base cash flow forecast. The 2023 figures in this forecast
are based on the Group's 2022 budget, which is based on board
approved forecasts and reflecting current performance, expected
revenue growth and membership retention. The 2024 figures in the
base cash flow forecast are taken from the Group's 3-5 year long
range planning. Cost inflation has been considered and additional
costs have been included to account for increased wage
inflation.
2. A severe, but plausible downside scenario. The directors have
also prepared a sensitised forecast which considers the impact of
certain severe but plausible downside events, when compared to the
base case. This scenario assumes a return of a covid-19 outbreak
modelling the impact of a full national lock-downs of one month
duration as a result of government-imposed restrictions together
with an associated reduction in global online sales.
In this scenario, capital expenditure has been reduced to
run-rate expenditure. This scenario demonstrates that the Group
would remain within its facility limits and in compliance with the
relevant covenants.
The Directors are mindful of the potential impacts to
macro-economic conditions and further risk of disruption to supply
chains that the conflict in Ukraine presents, but after assessing
the risks do not believe there to be a material risk to going
concern. Based on the above, the directors are confident that the
Group and Company will have sufficient funds to continue to meet
their liabilities as they fall due for at least 12 months from the
date of approval of the financial statements, and therefore the
directors believe it remains appropriate to prepare the financial
statements on a going concern basis.
4) Principal risks and uncertainties
The principal risks and uncertainties affecting the Group are
separately disclosed in the Annual Report & Accounts.
5) Dividends
No dividend was declared or paid during the period (prior period
GBPnil).
6) Revenue
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker;
Revenue by geography and by type.
* Europe represents direct sales markets within continental
Europe but excludes franchise markets in Denmark and Switzerland
which are shown within Rest of World.
7) Loss on ordinary activities before taxation
* Adjusted EBITDA classed as earnings before interest, tax,
depreciation, amortisation and exceptional costs (see note 10).
8) KPIs
1 Contribution is a non-IFRS measure, and is defined by
Management as Gross Profit less Commission paid in on sales
(primarily in relation to the US).
2 Expected Years is a non-IFRS measure, and is defined by
Manager 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 Europe represents direct sales markets within continental
Europe, but excludes franchise markets in Denmark and Switzerland
which are shown within Rest of World.
5 Revenue excludes JG Thomson and cask sales of GBP0.6m as they
aren't sales related to membership proposition.
9) Other operating income
10) Exceptional items
The 2022 non underlying costs relate to pre-operational expenses
in setting up the Masterton Bond site to be operational by the end
of 2022, and the initial costs of the American Whiskey concept and
brand assessment and development as well as establishment of
relevant legal entities. These costs are fully expensed in the year
with no revenue achievement and are therefore separately shown to
make clear the underlying profitable performance of the
business.
11) Taxation
12) Earnings per Shares (EPS)
13) Property, plant and equipment
GBP88k (2021: GBP96k) of the depreciation charge for casks has
been capitalised as a cost of stock. The remaining balance has been
expensed to the Statement of Comprehensive Income.
Leases are in relation to venues Queen Street in Edinburgh and
Bath Street in Glasgow as well as our new Masterton Bond supply
chain facility.
14) Inventories
15) Financial liabilities
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END
FR EALDNASPDEEA
(END) Dow Jones Newswires
March 29, 2023 02:00 ET (06:00 GMT)
The Artisanal Spirits (LSE:ART)
過去 株価チャート
から 12 2024 まで 1 2025
The Artisanal Spirits (LSE:ART)
過去 株価チャート
から 1 2024 まで 1 2025
