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Andrew Carter, the highly regarded CEO of Chapel Down, is leaving the English wine business after three years in the role, to run Timothy Taylor. Carter’s resignation, ahead of joining the Yorkshire-based brewery in 2025, was announced this morning as Chapel Down unveiled disappointing half year results to 30 June 2024.
Chapel Down blamed a series of “one-off challenges” in the off-trade for a 98% slump in pre-tax profits (to just £40k). But Carter insisted that the business was in a strong position ahead of H2, due to ”continued strategic and operational progress” and ”robust trading, particularly in the on-trade, export and direct-to-consumer channels, which shows continued, strong consumer demand.” A strategic review of Chapel Down’s funding options, announced in June, was ongoing, Chapel Down added.
But Carter’s resignation has prompted questions over a possible link to the poor results. A search for a successor is now underway, and Carter “will continue to lead the business until this process is completed in the first half of 2025”, Chapel Down insisted in a statement accompanying the results.
Chairman Martin Glenn said: ”Chapel Down has enjoyed huge success and celebrated several strategic milestones during Andrew’s time as chief executive and he should be very proud of what the business has achieved and the top team he has developed around him. I and the board have enjoyed working with Andrew immensely and wish him every success in his new role leading another iconic British brand. Chapel Down is the market leader in the English wine industry which continues to enjoy exceptional growth, and the team is highly motivated to execute the growth strategy and drive the continued development of the world’s newest global wine region from the front.”
For full coverage of Chapel Down’s results and more news on Carter’s resignation see here.
Morning Update
Also announcing its results this morning was meat and seafood supplier Hilton Foods. Sales fell 8.4% to £1.94bn, while pre-tax profits rose 25.3% to £33.5m in a 26-week period to 30 June (versus 28 weeks to 16 July in 2023). Volumes rose 3.2% with like-for-like sales up 1%, offset by raw material price deflation. CEO Steve Murrells said the results represented “another step forward”, with its core meat division performing “particularly well”, and a continued “positive” swing in the momentum behind its seafood business.
The announcement was accompanied by news of the retirement of chairman Robert Watson, after more than 20 years with the business. Mark Allen has been apointed as a non-executive director and chair designate with effect from 1 October 2024, and is expected to become chair of the board from 1 January 2025.
Further coverage of the results can be found here.
There were no updates from quoted retail stocks this morning, but John Lewis Partnership has announced plans to convert an old warehouse site in Reading (opposite the Oracle shopping centre into housing, with £80m set to be invested to create 215 homes. Assuming planning permission is granted, construction is expected to start in early 2026.
In other news, Itsu reached a new milestone, with revenues at its grocery business topping £50m for the first time, and delivering double-digit growth for the tenth consecutive year. Overall results were described as ‘solid’, with full-year sales of £161m, with group ebitda up 24% to £8.1m compared with last year, “despite rising costs and ongoing investment in people, healthier innovation and future growth”.
For full coverage of the results see here.
UK deal-making has fallen to a four-year low, according to new figures from the Office for National Statistics. The number of M&A deals fell by 17% in the three months to June, from 463 to 385, amid concerns over business confidence, with the value of inward, outward and domestic M&A all decreasing, but fears of imminent tax rises are expected to boost activity.
Share price watch
It was a bad day for the FTSE yesterday, which closed down 0.8% to 8,298.46pts. Among those on the up were Ocado, which climbed 3% to 351.4p, and Virgin Wines, which rose 3.5% to 45p. Chief among the fallers were Marston’s, down 3.8% to 37.8p, and Fever-Tree, which fell 3.6% to 855.5p. The share price of DS Smith, which posted a brief trading update yesterday, ended the day up 0.3% to 474p.
On the markets this morning, the FTSE 100 is down 61 points to 8237pts. Shares in Chapel Down were down 11.7% to 57.8p in early trading. Shares in Hilton Foods were down 1.75% to 956p.
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