Chapel Down Group PLC (AQSE:CDGP), the listed British wine producer, jumped 3.3% after revealing it is expecting a record-breaking yield and volume from its current harvest as well as planning for double-digit net sales growth over the full year.
This year's harvest is expected to do very well due to favourable weather that saw no vines damaged from frosting and huge rainfall in July, which in turn is expected to increase stocks of traditional sparkling wines for 2026.
A full update is expected when the harvest is complete.
Profitable growth from winemaking is forecast to continue beyond 2026, with the group already posting an operating profit increase of 27% to £658,000, driven by a 21% revenue increase to £8.4 million, the group revealed in its interim results.
Andrew Carter, CEO, commented: "Our focus remains on delivering significant growth in traditional method sparkling wine sales, margins, profits and cash flow, so we are extremely pleased with the powerful momentum of the business in the first half of the year.
“We are continuing to deliver on our growth plans by building our leadership position in the fast-growing English traditional method sparkling wine category to deliver long-term shareholder value.”
Plans to build a new winery outside Canterbury are underway, with Chapel Down hoping to explore opportunities for new vineyards as well as building up its tourism offering in the short to medium term.
Currently listed on the AQUIS exchange, the Kent-based winemaker said it was considering an AIM listing as it evaluates the optimal way to deliver its current growth opportunities.
Shares in Chapel Down are relatively flat in the last year, with the stock opening at around 46p on Wednesday.