30 January 2023

The British Honey Company plc

("BHC" or the "Company")

Trading Update

The British Honey Company plc, (AQUIS: BHC), the producer of premium British honey and craft spirits products, announces the following trading update, which includes the important Christmas trading period, ahead of the announcement of its full year results for the period ended 31 December 2022.

Results for the 12 month period ended 31 December 2022 reflect a solid first half sales performance. However, as announced on 14 December 2022, sales were impacted in the second half of the financial year as the squeeze on the UK economy and UK consumer spending became more pronounced. Overall, the Company expects to report revenues of £6m for the year as a whole (FY2021: £8m), which remains in line with revised revenue guidance provided on 26 August 2022.

As announced on 14 December 2022, independent industry consultants have been assisting the Board with a review of the Groups growth strategy and business plan. Good progress has been made and the Board expects to be able to provide more details in the coming weeks. Furthermore, and as a direct result of this ongoing operational review, the Company was pleased to announce, on 25 January, the appointment of one of these consultants, Andrew Smallman, to the Board as a Non-Executive Director. 

Also on 14 December 2022, the Company announced it had secured £750,000 of funding by way of a loan facility from a major shareholder to support its near-term working capital requirements. As at 31 December 2022, the Group's cash and undrawn facilities stood at £504,000. The Board is currently exploring further funding options to support the Company's growth and working capital requirements over the next 12 months and beyond. The Company is also in active discussions with a  number of potential new customers seeking to use the Company's distilling and white label offering for their products.

Outlook

In light of current economic and geo-political uncertainties, the Board continues to adopt a cautious business approach and rigorous cost control remains a key focus. Market conditions remain challenging and consumer demand difficult to predict, but discussions with potential new customers are encouraging. With the significant cost savings achieved over the past 12 months, the Group is now in a much better position to make further progress in the current financial year.

Financial expectations noted above are preliminary, and subject to year-end financial close and audit review processes.

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