This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

19 December 2022

The British Honey Company plc

("BHC", the "Group", or the "Company")

Audited Results for the 12 month trading period ended 31 December 2021

Further to the Company's announcement on 14^th December 2021 concerning the end of its formal sales process, its additional funding and a trading update, BHC (AQUIS:BHC), the producer of premium British honey and craft spirits products,  is pleased to announce the publication of its  audited results for the 12 month trading period ended 31 December 2021.

Key financials include:

·    Turnover of £7.96m driven by 'white label' sales from Union Distillers Limited ("Union")

·    Impairment of the value of Union Distillers Ltd

·    Exceptional costs of £8.93m including Union impairments

·    Loss for the year of £11.86m.

·    Loss per share 76.8 pence

Post year-end:

·    Exit from List USA investment and Tusmore Joint Venture

·    Closure of Worminghall distillery and production moved to Market Harborough

2021 was a challenging year and one of significant change for the Company. With the new Board being constituted in October 2021, all of the Company's financial and commercial commitments at the time were reviewed and their contribution to Group strategy carefully evaluated.

The delay in completing the audit has been caused principally by shortcomings in the execution of the  inventory/stock take, performed at the time of the acquisition of Union in February 2021. With the new management team in place only towards the end of the financial year, a further inventory take was performed at the year-end at each site to confirm the size and value of Group inventory. This was undertaken in close co-operation with the Company's auditors. Re-performing a roll back from the Union year-end and inventory count to the acquisition date ensured the existence of the inventory acquired could be substantiated.        

As previously announced, decisions were taken, after the year end, to exit both interests in List Distillery in USA and in the Tusmore whiskey joint venture.

The impairment charge of £7.91m against the value of Union was driven by the going concern statement contained in the 2021 accounts and the Directors decided to take a very prudent view on the goodwill and intangibles of Union. These have been recognised as exceptional items in the Profit and Loss account of the Company.

The Board also took the decision after the year- end, to close the Worminghall site and consolidate all production into the Market Harborough distillery, resulting in significant  annualised cost savings of over £1m.

The Group is now looking to fully integrate the British Honey Company and Union businesses and significant progress is being made in this regard.

A copy of the full set of accounts and the annual report can be found on the Company's website at www.britishhoney.co.uk and will also be sent to shareholders in due course.

It is also anticipated that the Company's interim results for the six month period to 30 June 2022 will be released within the next few days, allowing for the immediate resumption thereafter of trading in the Company's shares on the Aquis Exchange.  

Going Concern and Audit Opinion

The auditors have given a qualified opinion on the Company accounts for the year ended 31 December 2021 and the Board encourages shareholders to read their report and the Directors' report on going concern.

Trading position

As announced on 14 December 2022, the Board maintains a positive outlook for the business beyond its near-term working capital requirements, being addressed by support from a major shareholder. Overall, the Company's "white label" business is continuing to drive sales and a further update on trading is anticipated early in the New Year following the important Christmas trading period.

Commenting on the results, BHC's Chairman, Richard Day, said:

"Finalising the 2021  Accounts has been a long process but now allows us to look forward with a clear base and a settled business alongside the recently announced additional funding having been  secured. The underlying operations of the Group are now in a stronger position and we are working closely with our supportive customers to deliver our products. We look forward to providing further details on our trading early in the New Year. " 

About British Honey Company/Union Distillers

Launched in 2014, BHC/Union has an extensive collection of award-winning spirits brands. Its impressive range began with Keepr's British Honey Spirits infused with 100% pure British honey and now includes gin, rum, bourbon, and vodka. In 2020 it expanded further after acquiring the brands of the London Distillery Company (Dodd's Organic Gin, London Distillery Rye and Single Malt Whisky.

In February 2021, BHC completed the acquisition of Union Distillers Limited, based in Market Harborough, Leicestershire. Over the years Union has grown to become an independent producer and distributor of its 'own label' brands and "white label" spirits. It has well-invested infrastructure which includes its own stills and a bonded warehouse. Union has a strong manufacturing capability, established brands and an extensive and growing retail and wholesale customer base. Products include its premium, proprietary "Two Birds" range of spirits comprising 11 gins, seven vodkas, a spiced rum and a 29% ABV espresso vodka liqueur. In addition, Union distils spirits on behalf of a range of B2C customers including some major supermarkets.