The Artisanal Spirits Company, owner of the Scotch Malt Whisky Society, reported interim results for the six months to 30 June 2026 on 16 September 2026. Revenue fell 5% to £9.2 million, but branded revenue rose 7% to £7.9 million, and the board said it expects to meet current market expectations for the full year. The company is listed on AIM and is a constituent of the FTSE AIM All Share Index.

Limited-edition whisky and members

The group creates limited-edition whiskies and whisky experiences. It owns the Scotch Malt Whisky Society, Single Cask Nation, J.G. Thomson and Artisan Casks. The Society sells mainly direct to consumers, about 90% of revenue, and operates four member rooms in the UK. Membership reached 39,700, up 3%, with retention of 72% and new member recruitment up 15%.

The interim figures

Trade cask sales fell to £1.3 million from £2.3 million, which explains the overall revenue decline. Gross Profit was £4.9 million, down 15%, with gross Margin at 53% against 59%. The EBITDA loss was £1.4 million, compared with £1.5 million a year earlier, and the loss before tax was £3.6 million, unchanged. US reported revenue rose 18% and depletions rose 8% after a change in route to market. Net cash outflow from operations was £2.1 million, an improvement of £1.3 million.

Debt and balance sheet

Net Debt was £34.0 million at 30 June, up from £31.5 million at the end of 2025, although the rise was smaller than the £4.0 million increase in the same half of 2025. Borrowings were mainly a £32.9 million Santander revolving Credit Facility and £2.5 million of Fero inventory financing. The company reports more than 18,000 casks, which it values at between £50 million and £100 million. The directors stated a reasonable expectation that the group can keep operating for the next 12 months.

Outlook

Branded revenue to the end of August was up about 10% year to date, and membership exceeded 40,000. The company expects about £2 million of additional reported US revenue in the second half as the prior-year accounting impact unwinds. For 2026 the board expects to meet market expectations of revenue of £24.0 million, EBITDA of £1.7 million and a £0.5 million reduction in net debt, though this depends on trade cask sales completing as anticipated. An earlier trading update came on 15 July, and preliminary results were published on 30 March.

Reading the results

The mix of higher branded sales and lower margins is the central point. Direct sales to members carry strong margins, but trade cask sales to other companies are lumpy and the fall in them cut the gross margin. The company's stated aim of meeting full-year expectations leans on trade cask sales completing, which is something that cannot be controlled in the same way as membership growth. Annual results were published on 30 March, and the Annual General Meeting statement came on 19 May.

Sector context

Premium spirits businesses depend on consumer confidence, and aged whisky requires years of stock to be held, which ties up Capital and makes borrowing costs important. Membership models provide recurring income, but subscriptions can be sensitive to household budgets.

Risks and what to watch

The principal risks are the level of debt relative to earnings, the timing of lumpy trade cask sales, interest costs and the pace of US growth. Delay to a cask sale could push the company away from its year-end targets. Investors will watch for the next trading update, with the previous year-end one having been issued on 22 January 2026, and for any change in net debt.