A very positive update today from Chapel Down on the all-important yearly harvest. The yield is a bumper 2k tonnes, a near historical high and significantly, of very high quality grapes. This is consistent with the Group’s premium strategic positioning and helps underpin outer year revenue expectations. The exceptional harvest news builds on the solid interims recently and supportive of the ambition to double the size of the business by 2026 (>£28m sales and >£5m EBITDA). English sparkling wine is an exciting proposition which is in structural growth, benefiting from an improved maritime climate, investment and international recognition. Chapel Down is an attractive way to play this theme. It is the market leader, profitable and with net cash on the BS (£3.8m end of H1’22). The shares are underpinned by a historical NAV of 20p, with the true value being much higher in management’s view. We are positive.
