Announcement PDF RNS Number : 5917Y Artisanal Spirits Company PLC (The) 30 March 2026 The Artisanal Spirits Company plc ("The Artisanal Spirits Company", "ASC" or "the Group") Preliminary Results for the year ended 31 December 2025 FY25 results in line, start to the year in line with expectations The Artisanal Spirits Company (AIM: ART), the creator of outstanding, limited-edition whiskies and experiences around the world, and owner of The Scotch Malt Whisky Society ("SMWS"), Single Cask Nation ("SCN"), J.G. Thomson and Artisan Casks, announces Preliminary Results for the year ended 31 December 2025 ("FY25"). Against a backdrop of subdued consumer demand due to global economic and political uncertainty, ASC continued to make strategic progress and delivered a mixed but resilient year-on-year performance across the Group, notwithstanding the previously announced disruption caused by the US government shut down and the strategic change to Route-To-Market (RTM) in the US in Q4, which directly impacted revenue and EBITDA. As a result, the Group delivered an adjusted EBITDA loss of £1.9m. This reflects the impact of the US government shutdown and US RTM change which resulted in an inability to complete anticipated US shipments in Q4 2025 equating to around £1.8m of EBITDA and also a provision for US stock expected to be transferred to the SMWS America at the end of March from our current 3-tier partner of £0.8m. Excluding the Americas region, the Group saw a £0.4 million (c2%) decline in revenue. From FY26, the US RTM will report in-market depletions as opposed to shipments to the US further aligning revenue and cash and improving efficiency and speed to market for new initiatives. Additionally, this change will generate cost savings of c$1m (£0.75m) over three years. £'m 12 months to 31 December 2025 Reported 12 months to 31 December 2025 Adjusted1 12 months to 31 December 2024 USA Government Shutdown Impact2 USA Stock Transfer 3 Revenue 19.9 19.9 23.6 (2.4) (1.1) EBITDA (2.4) (1.9) 1.1 (1.8) (0.8) Loss before tax (7.0) (6.5) (3.1) (1.8) (0.8) 1 Adjusted EBITDA defined as earnings before interest tax, depreciation, amortisation and non-recurring costs. The non-recurring cost in the year being the £0.5m operational expense in January 2025 with our previous partner to take more direct management of the US RTM 2 Anticipated impact of government shutdown - shipments bottled and planned prior to closure which could not ship due to the inability to receive required COLA approval to import 3 Impact of stock to be transferred at the end of the contract with our previous partner, at the end of March 2026, as we change our RTM partner in the US market Financial Headlines · Continued effective revenue diversification, with revenue growth in cask sales (+13%), Venues (+8%) and Single Cask Nation (+10%) mitigating a 25% decline in Asia, where continued market and economic headwinds remain. The Asian region for ASC is now around 50% of the size it was in 2022, significantly impacted by economic headwinds in China over the period; however, we remain well placed in the Asian market for when improvement in market sentiment returns. · Cost management and efficiencies delivered a further £0.3m of recurring savings in the year (excluding the non-recurring US operational expense of (£0.5m)) - notably marketing cost per acquisition down around 1/3 year in year delivering growth in recruitment from a lower spend. · An organisational redesign completed in Q4 2025 will realise circa £0.9m of gross savings in FY 2026. · EBITDA loss of £2.4m (2024: £1.1m profit), being a loss of £1.9m at an adjusted level reflecting the £0.5m operational expense in January 2025 as part of the US RTM strategic change. · Loss before tax of £7.0m (2024: (£3.1m)), primarily due to the US operational impacts. · Cask stock holding with NBV of £28.3m (2024: £27.8m), which when independently appraised in July 2024 was valued at £102m and a 2026 bank valuation, on average, of 200% of NBV. · Successfully completed the RCF refinancing with Santander (September 2025), representing an increased facility of £13.5m at a 20bps lower headline margin rate and no financial covenants, with a 4-year term. £'m Note 12 months to 31 December 2025 12 months to 31 December 2024 Revenue 6 19.9 23.6 Gross profit 11.3 15.0 Gross margin 57% 64% EBITDA 7 (2.4) 1.1 Adj. EBITDA 7 (1.9) n/a Loss before tax 7 (7.0) (3.1) Loss after tax (7.2) (3.3) Net Debt** (31.5) (25.5) Cask inventory 15 28.3 27.8 Cask inventory valuation*** n/a 102.0 * Adjusted EBITDA defined as earnings before interest tax, depreciation, amortisation and non-recurring costs ** Net debt defined as current and non-current financial liabilities less cash and cash equivalents per the Statement of Financial Position, less interest accrued on inventory financing. *** Cask inventory valuation based on an independent valuation completed by sector experts in July 2024. Operational Headlines · Underlying membership was maintained in the year: UK increased 1%, offset by 1% decline in Asia; Growth in China and Japan of 2% and 5% respectively, was offset by decline in Taiwan of 20%. Global Membership Dec 2025 Dec 2024 underlying* % Change Dec 2024 reported Europe 24,700 24,400 1% 27,400 Americas 8,100 8,000 - 8,000 Asia 5,200 5,500 (1%) 5,500 Other 1,700 1,800 (1%) 1,800 Total 39,700 39,700 - 42,700 * Underlying membership excludes the c3,000 members who joined in Nov 24 on a complimentary basis (where engagement has been exceptionally low) · Product innovation continued at pace: Following the launch of the Creators' Collection in 2024 and rapid expansion of our Heresy range, we introduced our newly defined flavour profiles as part of our refreshed Signature range in Q4 2025, enhancing the messaging and storytelling of the range, and representing a unique and differentiated offering within the wider whisky industry. Member engagement is strong with regard to innovations with a number of bottlings selling out within hours or days. · In July 2025 we unveiled our newest ASC brand 'Artisan Casks' - a new luxury private cask programme, enabling private individuals the chance to purchase an individual cask to appreciate and enjoy the artisanal nature of whisky, with early achievement of sales in 2026 building on H2-25 delivery. · We announced new franchise agreements in India and Vietnam, both of which are in the top 15 Ultra-Premium Scotch Whisky markets for volume and value (IWSR 2024), as we look to build a presence in those geographies. · Another year of growth in our UK Venues, up 8%, further evidence of our members valuing the in-person experience on offer in our SMWS UK members rooms. Current Trading/Post Period Highlights · The start to the year has been solid, FY26 guidance remaining unchanged, with trading in line with expectations. Cask sales growth alongside year-on-year revenue improvements in Asia and America are offsetting a slower start in Europe where consumer confidence remains subdued. · The change to the US RTM, which will take effect from April 2026, allows us to take more direct involvement in boosting member engagement and brand awareness that will drive membership, revenue and EBITDA growth. · The Group holds no direct exposure to the current conflict in the Middle East, given we do not sell directly to any of those key geographies. Any impact would be more indirect, relating to associated inflationary pressures and consumer confidence. Andrew Dane, CEO of Artisanal Spirits Company, commented: "Despite persistent macroeconomic and complex geopolitical challenges, as well as the previously announced US operational disruption at the end of the year, ASC continues to manage the factors within its control well. We made good strategic progress in 2025, demonstrating the strength of our brands, the depth of our expertise and our ability to pivot and evolve. "The operational platform we have in place, combined with our cost base efficiency, more direct control over our US operations and increasingly diversified revenue streams, positions us well to benefit as market conditions improve. 2025 saw us further consolidate our presence in key Asian markets in India and Vietnam, and SMWS continued to progress, underpinned by a loyal, global membership base with around 70% member retention, demonstrating the enduring appeal of our unique single cask and small batch spirits. "Looking ahead, we continue to focus on delivering exceptional and unique whisky, growing our membership and deepening member engagement. We will continue to expand in international markets where the appreciation for premium spirits and experiential brands is growing, as well as diversifying our revenue portfolio, through the likes of Single Cask Nation and the growth in trade cask sales to strengthen our future profit delivery. "While mindful of near-term uncertainties, we remain confident in the strength of our brands, assets, strategy and medium-term opportunity." 30 March 2026 Sellside analyst presentation Andrew Dane, Chief Executive Officer, and Billy McCarter, Chief Financial Officer, will host an in-person presentation for sellside equity analysts today at 09.00 hours GMT. Analysts wishing to join should register their interest by contacting: artisanalspirts@teamlewis.com. A recording of the presentation will also be made available via the Group's website later today. Investor Meet Company presentation Andrew Dane, Chief Executive Officer, and Billy McCarter, Chief Financial Officer, will host a virtual presentation on Thursday 2 April at 10.30 hours GMT. Investors can sign up to Investor Meet Company for free and add to meet The Artisanal Spirits Company via: https://www.investormeetcompany.com/the-artisanal-spirits-company-plc/register-investor Investors who already follow The Artisanal Spirits Company on the Investor Meet Company platform will automatically be invited. For further enquiries: The Artisanal Spirits Company plc Andrew Dane, Chief Executive Officer Billy McCarter, Chief Financial Officer https://artisanal- spirits.com/link/P3D5By Panmure Liberum Limited (Nominated Adviser and Broker) Dru Danford Edward Thomas John More Tel: +44 (0)20 3100 2222 Team Lewis (Financial PR) Justine Warren Hannah Scott Tel: +44 (0)20 7802 2617 / 2634 About The Artisanal Spirits Company ASC's purpose is to captivate a global community of whisky adventurers, by creating and selling outstanding, limited-edition whiskies and experiences around the world, with an ambition to create a high quality, highly profitable and cash generative, premium global business. Based in Edinburgh, ASC owns The Scotch Malt Whisky Society (SMWS), Single Cask Nation (SCN), J.G.Thomson (JGT) and Artisan Casks. Owning over 18,000 casks primarily comprising Single Malt Scotch Whisky, ASC's stock includes outstanding whisky (and other spirits) from 100 different distilleries across 20 countries which is sold to members both as individual bottles and whole casks. With an established global presence in some 30 countries, SMWS operates a direct-to-consumer model (90% of revenue) primarily through e-commerce, in addition to four member rooms in the UK. SMWS provides members with inspiring experiences, content and exclusive access to a vast and unique range of outstanding, expertly curated Scotch malt and other whiskies. In January 2024, ASC acquired SCN which sources, curates and bottles single-cask whiskies and other spirits selling both online and via traditional retail channels to its following of over 10,000 whisky enthusiasts in the USA.SCN also retails to key international whisky markets around the world. Launched in the UK in late 2021, JGT has a focus on outstanding small batch blended malt whiskies and other spirits, available both through direct-to-consumer online sales and through traditional retail channels. The award- winning brand has subsequently expanded into international markets. In July 2025, ASC launched Artisan Casks, a luxury private cask programme allowing private individuals the chance to purchase an individual cask of a quality that allows for immediate bottling and joining a select network with a discerning appreciation for finest craftsmanship and luxury experiences. With proven e-commerce reach and a growing family of brands, ASC is building a portfolio of limited-edition and small-batch whisky and other spirits brands for a global movement of discerning consumers - predominantly from outside the UK, with an expanding presence in the other key global whisky markets including USA, China, Europe, Japan, Australia and Taiwan. ASC has a substantial asset backing and is delivering profitable growth and cash generation. Chair's Statement Introduction 2025 has been a mixed year for the Group, as we navigated a challenging economic and political backdrop and initiated a significant change to our US route-to-market. Artisanal Spirits celebrated its 10th anniversary in March 2025 and as I reflect on the past 12 months, I am encouraged that, in the face of significant headwinds, the Group has continued to build on its Scotch Malt Whisky Society (SMWS) foundations, achieving strategic progress, engaging the 40,000 members of the SMWS and spearheading award-winning innovation, whilst remaining true to our core purpose of delivering exceptional whisky experiences. We recognise the frustration due to the full year profit downgrade caused by the USA government shutdown which led to the cancellation of shipments to the USA prior to Christmas. This issue did allow us to accelerate fundamental changes to our USA route-to-market which incurred an additional, but smaller than anticipated, non cash financial impact while enabling material cost savings in future years. The Board would like to thank shareholders for their patience and continuing support. ASC post IPO Despite a persistently challenging market and economic backdrop, over the five years since our IPO, we have successfully grown and diversified the business with measured cost and investment management and a disciplined, strategic approach. A significant milestone was achieved in 2024 with our first full year of positive EBITDA since listing, a testament to the team's focus on our strategic priorities and operational efficiencies. We have further expanded our international footprint, most recently building on our presence in key Asian markets with the establishment of franchises in India and Vietnam. In the USA, we acquired Single Cask Nation in early 2024 and then at the end of 2025 we made a fundamental change to our route-to-market in the country giving more direct control of our operations. Our strategic delivery has included a move into a clear and structured cask sales programme, as we realise value from the surplus stocks we hold, an opportunity which we later extended to private individuals with the launch of the luxury private cask programme, Artisan Casks. The opening of our own supply chain facility in Masterton has been another transformative step, enabling us to become fully self-sufficient in bottling and dispatch, enhancing our operational resilience. We have invested in our whisky stock to the point where we now own over 18,000 casks, primarily comprising Single Malt Scotch Whisky, but including outstanding whisky from 100 different distilleries across 20 countries. As a result, the cask spirit asset base has grown over 50% over the last five years, at a Net Book Value (NBV) level and, from an independent valuation performed in 2024, has an inherent market value of over 3x NBV[1]. Collectively, these steps since IPO have supported a circa 40 percent increase in SMWS membership numbers and an over 50 percent increase in Group revenues in 2024 (2025 revenues impacted by significant one-off US impacts) compared to 2020, demonstrating the strength and adaptability of our business model and positioning us for future profitable growth. 2025 performance and progress In 2025 the Group delivered a resilient year-on-year performance, in spite of the significant impact of the cancelled shipments relating to the US government shutdown and accelerated USA route-to-market changes alongside ongoing macroeconomic uncertainty and associated weaker consumer demand for premium and luxury spirits globally. SMWS has continued to evolve, underpinned by a loyal, global membership base with around 70% member retention. This year, underlying membership was broadly maintained, with record underlying recruitment in the UK and China and increasing member engagement across Europe, a testament to the enduring appeal of our unique single cask and small batch spirits. In the past year, we welcomed new franchise partnerships in India and Vietnam, building on our previous successes in Taiwan and South Korea. Whilst entry into the Indian market is expected to deliver marginal returns initially, we believe the future growth potential is a key long-term opportunity for the business as the Indian whisky market further develops and there is an expected reduction in tariffs in 2026 from 150% to 75%, dropping to 40% over 10 years. In the USA, we are initiating important changes to our route-to-market in line with our strategy to take more direct management of our US operations over time, as we continue to take steps to reduce the potential impact of any tariffs. The US government shutdown in the latter part of 2025 caused a delay to anticipated shipments at the end of FY25 which were entirely out of the Company's control and which alongside the change to RTM and associated operational expense had a one-off impact on the reported results for FY25 of £3.5 million of revenue and £3.1 million of EBITDA. Importantly, this will have no impact on in-market operations. To commemorate the 10th anniversary of The Artisanal Spirits Company in March 2025 we released 260 bottles of a limited-edition 10-year-old bourbon-cask single malt Scotch whisky, for Spirited shareholders to purchase exclusively. We supplemented this with the introduction of a new, enhanced Spirited shareholders benefits programme, offering additional benefits for existing members who hold at least 1,000 shares, as well as a new tier of benefits to those who hold at least 5,000 shares. Product innovation remains at the heart of our offering. In 2025, SMWS continued to delight members with a diverse range of single cask and small batch releases. Following on from the launch of the Creators' Collection in 2024, towards the end of 2025 we released the new Signature range, enhancing the messaging and storytelling of the range, and representing a unique and differentiated offering within the wider whisky industry. This was underpinned by the simplification of the SMWS flavour profiles ensuring that members can easily navigate the portfolio. Our focus on quality and exclusivity has ensured strong demand for our bottlings and reinforced our reputation for creativity and excellence. Sustainability continues to be a key pillar of our strategy. We have maintained our commitment to responsible sourcing, efficient operations, and reducing our environmental impact, in line with the Scotch Whisky Association's Sustainability Strategy. Celebrating continued industry recognition Once again, the quality of our spirits was recognised by many awards from the top competitions around the world. Among those, SMWS won five medals at The Spirits Business Scotch Whisky Masters, seven medals in the International Spirits Challenge and four awards from the International Wine and Spirits Competition. Single Cask Nation retained the honour of Independent Bottler of the Year in 2025 at the World of Whiskies awards. Solid performance against a challenging backdrop The Group faced a challenging situation in 2025, with significant cost inflation in addition to difficult economic, political and market conditions. In particular, market conditions in Asia were a major driver of the gap to prior year. While underlying membership remained broadly flat in the face of tough market conditions, we saw revenue growth in trade cask sales, venues, and Single Cask Nation. Our exclusive SMWS Members' Rooms continued their consistently strong performance throughout 2025, with mid to high single digit revenue growth in each quarter of the year. Our disciplined approach to cost management and operational efficiency has enabled us to continue investing in our strategic priorities while supporting long-term value creation for shareholders. In the second half of 2025 we undertook a top to bottom cost review and almost £1 million of gross annualised cost savings were identified that will start to flow through in the Income Statement in 2026. We successfully completed a new financing agreement with Santander in September. The new agreement contains improved terms, such as a longer term, greater headroom and lower margin than the previous facilities with another bank. Strategic priorities Looking ahead to 2026, our strategic priorities remain clear. Delivering exceptional and unique whisky, growing our membership and deepening member engagement are at the forefront of our agenda, and we continue to invest in member experiences, both in our venues and through digital channels, to foster a strong sense of community and loyalty. We continue to look towards international expansion where our focus is on markets in which appreciation for premium spirits and experiential brands is growing. The UK, Europe, the USA and Asia remain the priority markets and the next step in our US strategy will take place from April when we transition the in-market stock to our direct partners and commence the new route-to-market which we are confident will deliver substantial recurring cost and efficiency benefits. People Our achievements in 2025 would not have been possible without the dedication, resilience and expertise of our people. I would like to extend my sincere thanks to the Board, executive leadership and all colleagues across the business. Their passion for our brands and commitment to our mission are evident in everything we do. We continue to uphold the highest standards of governance, ensuring that our decision-making is transparent, accountable, and aligned with the long-term interests of all stakeholders. Outlook The Group has consistently demonstrated its ability to adapt to a changing world, and 2025 has been no exception. I remain mindful of the external uncertainties that continue to shape our industry and the significant headwinds the Group is facing, predominantly due to factors out of its control. However, we are well placed to achieve future profitable growth, as the well-held belief that the cyclical rather than structural dynamics of the spirits market means the last few years' headwinds turn into positive tailwinds. The Board and I are grateful to our members, partners and shareholders for their continued support and trust, and I remain confident that our strategic initiatives and dedicated team will drive our company forward, delivering value for our members and shareholders. CEO Statement Strategic progress and resilience a key part of FY25 2025 was a year that tested our resilience as a business, as an industry and as a global community of whisky lovers. Despite persistent macroeconomic challenges, a complex geopolitical environment, and the previously announced US operational disruption at the end of the year, The Artisanal Spirits Company continued to make strategic progress, demonstrating the strength of our brands, the depth of our expertise, and the commitment of our people. Crucially, we have maintained a relentless focus on ensuring the business is future fit for the opportunities ahead. This included a rigorous, Group wide emphasis on cost discipline and operational efficiency, with active steps to streamline our cost base and embed stronger productivity across our operations. This work is already delivering benefits, and our focus on cost management will continue into 2026, allowing us to focus our resources on the areas that deliver long-term growth and value creation. Performance & Strategic Context Excluding the Americas region, the Group saw a £0.4 million (c2%) decline in revenue, with a similar sized reduction in EBITDA. Momentum in key markets improved in H2, and we saw some strong performances within the Group, including SMWS recruitment in UK and China, resilience in global membership and retention, expansion of Single Cask Nation and the launch of Artisan Casks. Within the United States, while the momentum for in-market sales improved during the year, returning to growth from Q4-25 following a c30% decline in H1-25, the US government shutdown prevented us from completing an anticipated £2.4 million shipment in the period, which would have delivered around £1.8 million of EBITDA. Alongside the one-off £0.5 million cost of the change in RTM and a known stock return revenue reversal of £1.1 million (with a related £0.8 million EBITDA effect), these non-recurring factors created a significant temporary distortion in the reported FY25 results. Importantly, these steps mark the final chapter of transition, and establish the conditions for stronger, more profitable growth from FY26 onwards. At the same time, continuing challenges in Asia remained a meaningful drag on performance. However, we believe these challenges are cyclical rather than structural, and we are now starting to see signs of stabilisation. Recent Scotch Whisky Association export data for 2025 highlighted that the value of global exports held relatively stable at £5.4 billion, supporting our confidence that underlying consumer demand remains robust. The long term drivers of premiumisation - rooted in "less but better" consumption and the deep emotional connection consumers have with single malt whisky, craftsmanship, provenance and experience - remain firmly intact. In the meantime, we continue to have a strong focus on operational efficiency, delivering significant cost savings and the broader shift to a leaner, more agile operating model, and this cost discipline together with operational efficiency will continue to be core priorities throughout 2026. Progress Across Our Brands Scotch Malt Whisky Society (SMWS) SMWS continues to be the jewel in our crown: a unique, global whisky community grounded in creativity, discovery and experiences. In 2025, we held membership steady at around 40,000, underpinned by record underlying recruitment in the UK and China and growing engagement across Europe. We invested in the brand and proposition: evolving our flavour navigation, launching the Signature range, advancing the Creators' Collection, and redesigning the proposition with "Get Into The Good Stuff" to make our world more accessible without compromising the depth or integrity of our whisky or our storytelling. Member experience continues to be a powerful differentiator - demonstrated through the outstanding performance of our Members' Rooms, each delivering consistent mid-to-high single-digit growth. Single Cask Nation (SCN) SCN delivered another strong year, growing revenue by 10% despite a market backdrop in the USA that remained exceptionally difficult for all Scotch whisky importers following the introduction of tariffs. SCN's reputation is rising around the world, recognised again in 2025 with its second consecutive Independent Bottler of the Year award. The combination of the new US route-to-market and SCN's growing appeal positions this brand extremely well for accelerated global expansion. Cask Sales & Artisan Casks Our structured trade cask programme delivered year-on-year growth of 13%, reinforcing its strategic role in both revenue diversification and balance sheet optimisation. The early momentum of Artisan Casks, our luxury private cask programme launched in July, was especially encouraging. We believe it represents a major multi-year opportunity. Global Expansion 2025 marked the expansion of our franchise model into two major international whisky markets: India and Vietnam. These new partnerships represent long term strategic footholds in markets with exceptional potential. Whilst we anticipate an initial contribution in FY26 will be modest, we are confident that our disciplined, partnership-led approach will create both brand equity and commercial opportunity for years to come. The US - Delivering a Major Strategic Transition The USA remains the largest whisky market globally and a critical growth frontier for ASC and we have made significant strategic progress in recent times: - We completed the acquisition of SCN in early 2024; - We initiated the transition to direct control of SMWSA in early 2025; - We made the final operational shift in late 2025, with the new route-to-market going live in April 2026. Although the US shutdown created unavoidable disruption to FY25 shipments, the foundations now in place are exactly what the business needs: greater control, greater visibility, and improved cost efficiency, including around $1m (£750k) of savings over the next three years. Late 2025 showed depletions returning to growth, a significant milestone, and this has continued into early 2026. Our People & Culture The resilience, expertise and passion of our teams across the UK, USA, China, Europe, Japan, Australia and Taiwan and our global partners were central to everything we achieved in 2025. Our engagement scores remain strong and our culture continues to be one of ASC's greatest assets. Our people are the custodians of our brands and the creators of the experiences our members love. Looking Forward - A Clear Vision & Strategy As we look ahead, we are laser-focused on delivery of our 2026 targets and our strategic priorities remain clear: - Recruit, engage and retain more SMWS members worldwide; - Accelerate SCN's growth into new global markets and US states; - Realise value from our cask stock through trade and private cask sales; - Expand ASC's reach, through portfolio, mark