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.

23 December 2022

The British Honey Company plc

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

Unaudited Interim Results for the Six Months ended 30 June 2022

&

Restoration to Trading

BHC (AQUIS:BHC), the producer of premium British honey and craft spirits products, is pleased to announce the publication of its interim results for the six month period ended 30 June 2022. Restoration to trading on the Aquis Exchange of the Company's Ordinary shares is consequently expected to become effective at 8.00 a.m. today. The full interim accounts are available on the company's website www.britishhoney.co.uk.

Key Financials

·    Sales of £3.04m (2021: £2.99m) marginally ahead of same period last year

·    Interim operating loss of £1.96m (2021: £1.31m loss)

·    Equity fundraise during the period raising gross proceeds of £0.54m

·    Exceptional costs from the reorganisation and production consolidation of £0.396m impacting H1 2022

·    Restructuring of cost base, leading to expected annualised savings of over £1m

·    Impact of impairment provision on net assets in 2021 can be reversed as underlying trading performance improves

Operational Highlights

·    Closure of Worminghall Distillery and consolidation of production into Market Harborough

·    Exit from the Joint Venture with Tusmore

·    Exit from the arrangement with List Distillery LLC ("List") completed in September 2022

·    BHC and Union Distillers Limited ("Union") full integration progressing well and stock take issues resolved

·    Twin track strategy to drive sales though white label and brands clearly defined

BHC delivered a solid first half in terms of sales, notwithstanding the wider economic environment which became more challenging across the country as we entered the second half of the current financial year. However, customer retention and demand remained robust and we continue to attract new business thanks to our strong production capabilities and a focus on maintaining the quality of our customer service.

These are the first set of figures produced for a period entirely under the management of the new Board. Following a comprehensive strategic review conducted by the Board, the decision was taken to focus the business on the key UK market, which saw the Company end its partnership with List.

The Board also took the opportunity to review the Company's investments in the Joint Venture ("JV") at Tusmore and decided to exit the JV in May 2022. We still see good potential in developing an English Whiskey offering independently and are keeping this as an opportunity under review for the future.

The decision was taken to close our Worminghall distillery, which was announced on 6 January 2022, and to consolidate all of our production at our Market Harborough distillery. This move was completed in July 2022 and resulted in a considerable cost saving as outlined below.

Cost base

With the re-organisation of the businesses, significant costs have been taken out which should not impact on productivity. With the re-structuring of this cost base and the consolidation of all production at our Market Harborough site, expected annualised savings of over £1m are now being realised.

A thorough review of the Company's overall cost base has been undertaken, identifying the cost drivers of the business to ensure they are aligned appropriately against the key performing areas. The Board intends to introduce segmental reporting in the next financial year, which will provide greater clarity both internally for the management team on how best to allocate resources and also for investors on the performance of the various business lines.

Net assets

The Group's net asset position was significantly impaired as a result of the going concern qualification, which was part of the 2021 year end audit. As previously announced, the Group is targeting raising further equity funding, to sit alongside the recently provided debt funding, early in the New Year which would stabilise the longer term prospects of the business. As the Group moves closer towards profitability, this would allow the Group's net asset position to return to a positive figure.

Trading

As announced on 19 December 2022, the Board maintains a positive outlook for the business beyond its near-term working capital requirement 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.

Resumption of trading in the Company's Ordinary shares

Following publication of the Company's results for the twelve month trading period ended 31 December 2021 and the interim results for the six months ended 30 June 2022, restoration to trading on the Aquis Exchange of the Company's Ordinary Shares is expected to become effective at 8.00 a.m. today.

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

"Top line performance has been satisfactory in the first half, with consumer demand remaining relatively strong. Pricing levels have been maintained in a generally challenging global environment. The overall picture in the economy has tightened in the second half and our turnover has been impacted but we are busy and active.

"The response to us being able to announce the ending of our formal sales process has been very positive among our customers. Our investors will also shortly see the resumption of dealings in the Company's shares after a lengthy period of suspension.

"The underlying operations of the Group are now in a stronger position and we look forward to providing further details on our trading and operations 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. Union was awarded BRC Global Standard for Food safety in April 2022