Chapel Down Group plc (AIM: CDGP), England's leading winemaker, announced on 4 November 2026 a proposed capital raising of up to £6.0 million through a placing of new ordinary shares at 43 pence per share and a separate retail offer. The proceeds are earmarked primarily for a £4.5 million soft pressing facility at the company's Tenterden winery in Kent, which the board believes will materially improve margins, quality, and production resilience. Directors have committed to participating in the placing for an aggregate of £500,000, signalling board conviction in the investment case.

Key Points

  • Chapel Down Group plc (AIM: CDGP), England's leading winemaker based in Tenterden, Kent
  • Proposed placing to raise approximately £5.5 million gross, plus a retail offer of up to £0.5 million, totalling up to £6.0 million
  • Placing Price set at 43 pence per new ordinary share; Admission expected at 8.00 a.m. on 10 November 2026
  • Investors should watch for the retail offer closing on 9 November 2026 and the Soft Pressing Project's targeted IRR of greater than 20%

Chapel Down's £4.5 Million Soft Pressing Project Targets £2.0 Million Annual Gross Margin Uplift

The central use of placing proceeds is a new soft pressing facility at Tenterden, comprising an additional press — taking the total from four to five — alongside new tank capacity, automation, and associated infrastructure. The announcement states this will increase annual Traditional Method Sparkling wine production from 2.1 million to 2.4 million bottles on an average-yield harvest, with flexibility to reach 2.8 million bottles in higher-yield years. By raising the volume of grape juice allocated to TMS production per tonne from 550 to 630 litres, the company targets approximately £2.0 million of incremental annual gross margin from the same crop, with realisation expected to build from FY30 onwards.

H1 2026 Trading Shows 19% Net Sales Growth and Expanding US Distribution for CDGP

Chapel Down reported unaudited results for the six months ended 30 June 2026 on 23 September 2026, recording net sales of £9.4 million, up 19%, with gross profit of £9.4 million rising 28% and gross margin improving by 3.5 percentage points. TMS net sales revenue grew 26%, representing 74% of wine sales. International net sales rose 66%, driven by US growth through importer Jackson Family Wines, with distribution expanding from 11 to 31 states and a new listing across 250 Whole Foods stores. The board has guided for at least a 10% uplift in adjusted EBITDA versus prior market expectations for the full year.

Director and Cornerstone Investor Commitments Underpin the Accelerated Bookbuild

The announcement confirms that directors intend to participate in the placing for a combined £500,000, with Lord Michael Spencer and Nigel Wray each committing £200,000. Two UK institutional investors have provided indicative cornerstone commitments of up to £2.5 million in aggregate. Singer Capital Markets Securities Limited is acting as sole bookrunner and broker. The placing is not conditional on shareholder approval, having been structured within existing authorities granted at the Annual General Meeting held on 17 June 2026, and is not being underwritten.

Soft Pressing Facility Targets 2027 Operational Start and Revised 2033 Ambition for 2.5 Million TMS Bottles

Planning permission has been granted and construction is expected to begin in Q4 2026 following the 2026 harvest, with estimated completion by July 2027. The board believes the project provides sufficient production capacity to achieve its ambition of selling approximately 2.5 million bottles of TMS per annum by 2033 — equivalent to a 1% share of global Champagne volumes — two years ahead of its previous target of 2035. The 2026 harvest yielded 2,706 tonnes at 3.0 tonnes per acre, modestly below the five-year historic average of 3.3 tonnes per acre, partly due to a late spring frost in May.