TIDMART
RNS Number : 2349K
Artisanal Spirits Company PLC (The)
20 December 2022
The Artisanal Spirits Company plc
("The Artisanal Spirits Company", "ASC" or the "Group")
Banking facility extended and new Malaysia agreement
Extended Bank Facility
The Artisanal Spirits Company (AIM: ART), curators of the
world's favourite, single-cask and limited-edition whisky, and
owner of The Scotch Malt Whisky Society ("SMWS"), is pleased to
announce that it has extended its agreement with RBS to increase
its existing revolving credit facility to GBP21.5 million
(previously GBP18.5 million) and extend the term of the commitment
until 19 December 2025, broadly representing a two year extension
of the previous term.
Interest under the RBS Facility will accrue at 2.25% over SONIA
and this new rate represents a 0.25% reduction in the margin on the
facility, and based on the current facility utilisation of GBP16.5
million, this would equate to an annual saving of c.GBP40,000 of
interest costs for the Group. This new agreement retains the
existing "Springing Test" clause, meaning that no covenants are
tested while the Group maintains an appropriate stock balance.
The RBS facility provides ASC with additional flexibility to
expand and grow all aspects of its business, ranging from
Membership, investing in the Group's brand and whisky stocks, as
well as continuing to increase its international reach.
The Directors expect to update the market on trading in the
financial year ending 31 December on or around 23 January 2023.
New Partnership Agreement in Malaysia
SMWS is pleased to announce that it has signed a new partnership
agreement in Malaysia, migrating its operations in that region to
Drinks Alliance. The agreement provides a new route to market in
the region and further strengthens the Group's geographic footprint
in South East Asia. Malaysia is the 12th largest market within the
global Ultra-Premium Scotch Malt Whisky sector, based on value, and
was estimated to be worth c.US$102 million in 2021, up by 49% vs
2020 (source: IWSR). This follows the Group's recent entry into
South Korea in October with an inaugural franchise agreement in
that location, as ASC continues to expand its global footprint into
new growth markets.
David Ridley, Managing Director, commented:
"The successful increase in the banking facility is testament to
the strength of ASC's consistent strategic delivery and extensive
asset base of unique and appreciating whiskies and other spirits.
The extended facility provides us with further firepower to
continue to grow our membership base both in the UK and
internationally, to launch the Group's American Whiskey proposition
in H1 next year and to continue to invest in further spirit stock
for ageing, underpinning ASC's future growth.
"We have a clear strategy and a pioneering model to maximise the
benefit from favourable long-term growth drivers. We will continue
to execute against our growth strategy to deliver a doubling of
sales between 2020 and 2024 in a disciplined and measured way with
expansion evidenced by our international partnership agreements in
territories such as Malaysia announced today and in South Korea in
November, two of the fastest growing whisky markets in the
world.
"We have an exceptional opportunity and remain well positioned
to capitalise on it with whisky stocks to satisfy all demand until
2028 and 75% of demand until 2033."
20 December 2022
For further information, please contact:
The Artisanal Spirits Company plc via Instinctif
David Ridley, Managing Director Partners
Andrew Dane, Finance Director
Singer Capital Markets (Nominated Adviser
& Sole Broker)
Sandy Fraser
Phil Davies
George Tzimas
Asha Chotai 020 7496 3000
Instinctif Partners (Financial PR)
Justine Warren
Matthew Smallwood 020 7457 2020
About The Artisanal Spirits Company
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 36,000 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, 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 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.
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