Panmure Liberum has repeated a ‘buy’ recommendation for Artisanal Spirits Company PLC (AIM:ART) after the drinks firm refinanced on Tuesday, with the broker saying the group’s balance sheet is now in far better shape to support growth.
A new £35 million facility with Santander replaces a previous £21.5 million revolving credit facility with RBS, cutting the margin rate by 20 basis points, removing covenant tests, and extending maturity out to 2029.
Analysts at Panmure Liberum described the package as “on more favourable terms” and highlighted the benefits of simplifying debt into a single, flexible structure.
Crucially, Panmure reckons that the net debt peaked in the first half of 2025, and says the business is now generating sufficient free cash flow to fund working capital and cask investment internally.
The broker also underlined that asset backing of more than £100 million provides strong underpinning to the current £60 million enterprise value. As such, Panmure Liberum said the refinancing alleviates near-term funding concerns, and points to a clearer runway for the delivery of operational improvement.
With shares trading at just 42p, against Panmure’s 95p target price, the analysts see substantial upside.