Losses at listed English winemaker Chapel Down grew to over £1m in the six months to 30 June as it continued to invest in expansion.
The Nex-listed company said today it made a loss before tax of £1.7m, up from £581,851 at the same period last year.
The company said the loss was the result of “a conscious decision to continue investing ahead in our people, our systems and our brands”.
Year-on-year combined sales grew 21 per cent to £6.7m.
Chapel Down said 2018’s “extraordinary harvest” had allowed it to increase stocks by 30 per cent to £8.2m.
Chief executive Frazer Thompson said: “The current market uncertainty means that we can see there is more change to come. At Chapel Down we believe that we must continue to provide consumers with more innovation and more excitement and provide our trade customers with more opportunity for premium pricing and great value from excellent brands than ever before.”
Bank borrowings grew from nothing in the first half of 2018 to £6.4m this year, which the company said was based on the development of its brewery building and the associated brewery kit.
The company said it had planted an additional 154 acres of vineyards on “outstanding chalk terroir” on the North Downs in Kent.
Gross profit increases from £2m to £2.6m