Key Highlights

  • Chapel Down Group (LSE:CDGP) raised about £5.5m by placing 12,790,697 new shares at 43p with institutional and professional investors.
  • A retail offer of up to 1,162,790 shares at the same price, worth about £0.5m, opened on 5 November and closes on 9 November.
  • Directors subscribed for about £505,000 of shares in the placing.
  • Proceeds will fund a new soft pressing Facility at the Tenterden winery, lifting sparkling wine capacity by 14% to 2.1 million bottles in a normal harvest.
  • The AIM-quoted winemaker now expects to reach 2.5 million bottles of traditional method sparkling wine by 2033, two years earlier than planned.
  • First-half net sales rose 19% to £9.4m, and full-year adjusted EBITDA is expected to be materially ahead of market expectations.

Why Chapel Down Group Is in Focus Today

Chapel Down Group (LSE:CDGP), England’s largest winemaker and the best-known Brand in English sparkling wine, is one of the most discussed AIM consumer stocks on Thursday, 5 November 2026. The company completed a placing on 4 November that raised about £5.5m before expenses, and today opened a retail offer that allows UK investors to buy shares at the same 43p price.

The fundraising is aimed squarely at growth. The 43p price was a 1.1% premium to the closing price on 3 November, an unusual feature for a placing and a sign of strong Demand from investors. The shares of Chapel Down Group (LSE:CDGP) have traded between about 30p and 50p over the past year, reaching their high on 24 September after the company upgraded its profit outlook.

The Fundraising in Detail

Chapel Down placed 12,790,697 new ordinary shares at 43p, raising gross proceeds of approximately £5.5m, or about £5.1m after fees. Directors subscribed for around £505,000, showing board confidence in the plan. Chief executive James Pennefather said the company was delighted to use its AIM listing to raise growth capital, with strong support from both new and existing investors.

The retail offer, run through the BookBuild platform, covers up to 1,162,790 new shares, worth up to about £0.5m. It closes on 9 November, with results announced the same day. The placing shares are expected to be admitted on 10 November and the retail offer shares on 13 November.

What the Money Will Build

Proceeds will fund a new soft pressing facility at the company’s winery off Small Hythe Road in Tenterden, Kent. The facility will increase capacity by 14% to 2.1 million bottles of traditional method sparkling wine in a normal harvest, and by around a third in a high-yield harvest. Planning permission has been granted, design work is at an advanced stage, and construction is expected to begin in the fourth quarter of 2026, after this year’s harvest, with completion targeted by July 2027.

The project matters because traditional method sparkling wine is at the heart of the strategy for Chapel Down Group (LSE:CDGP). These wines, made in the same way as champagne, deliver a gross Margin per bottle about four times higher than the company’s other wines. With the extra capacity, Chapel Down now expects to sell 2.5 million bottles of traditional method sparkling wine a year by 2033, two years earlier than its previous target.

Strong First-Half Momentum

The fundraising builds on a strong set of interim results published on 23 September. Net sales Revenue rose 19% to £9.4m in the six months to 30 June 2026, with growth across all channels and a 26% rise in traditional method sparkling wine sales. Gross margin improved by 3.5 percentage points to 49.6%, and adjusted EBITDA rose 27%.

The board said it expects full-year adjusted EBITDA to be materially ahead of market expectations, with net Debt lower than previously forecast, helped by continued momentum into the third quarter, strong plans for the key Christmas trading period and more efficient inventory planning. Chapel Down also increased its share of the UK off-trade English sparkling wine category to 37%, from 35% a year earlier.

Risks to Consider

Wine production depends heavily on the weather, and harvest sizes in England can swing sharply from year to year. Construction projects can face delays or cost overruns, and the new shares will dilute existing holders. Consumer spending on premium drinks may weaken if the economy slows, and duty changes on alcohol could affect pricing. Liquidity in the shares is also relatively modest.

What Investors Are Watching Next

In the near term, investors will look for the result of the retail offer on 9 November and admission of the new shares on 10 and 13 November. After that, the focus turns to Christmas trading, the most important period of the year for sparkling wine, and to updates on the 2026 harvest and the start of construction at Tenterden. The full-year trading update early in 2027 will show whether adjusted EBITDA has landed materially ahead of expectations, as guided. Progress on export markets, partnerships and premium pricing will shape the longer-term story for Chapel Down Group (LSE:CDGP).