The Artisanal Spirits Company, owner of The Scotch Malt Whisky Society, has announced that David Ridley is stepping down as managing director and Andrew Dane is being appointed as chief executive.
The AIM-listed group's trading update for the year ended 31 December 2022 explained that following six years in the role, Ridley will step down - although remaining available to support his successor until July.
Dane, the current finance director, has been appointed as chief executive with immediate effect, charged with driving the next phase of growth.
Billy McCarter, formerly group financial controller, has been appointed as interim finance director and the board has initiated a search process, comprising both internal and external candidates, to identify a long-term chief financial officer.
Ridley commented: “I have thoroughly enjoyed my time with ASC and am proud of the group’s success to date.
“There is demonstrable momentum in the business and following another year of strong growth, I feel the time is now right for me to seek a fresh challenge and hand over the reins for the next phase of ASC’s development.”
Revenue for the year is expected to show growth of approximately 20% over the previous year's figure of £18.2m, with this performance being slightly ahead of the consensus revenue forecast of £21.6m.
Scotch Malt Whisky Society membership grew by approximately 12%, with circa 37,000 members at the year-end, up from 33,000 at the end of 2021. Retention remained broadly consistent with the prior year level of 77%.
The group’s multi-purpose supply chain facility, Masterton Bond, became operational on time and to budget in the fourth quarter, with 20,000 bottles produced already, along with hundreds of casks delivered and first pallets dispatched prior to the year end.
It is anticipated that, once fully operational, this facility will improve operating margins by around 2%, with the initial benefits now starting to be realised.
A revolving credit facility with RBS was extended by two years and increased to £21.5m on more favourable terms, providing additional flexibility to grow all aspects of the business; ranging from membership, continued investment in the brand, whisky stocks and international reach.
The results also noted continued international expansion during the year, with an inaugural franchise agreement in South Korea and a new partnership with Drinks Alliance in Malaysia.
Chairman Mark Hunter stated: “Sales have increased by circa 20% once again and membership by around 12% and we remain on track to meet our target of doubling revenue to £30m between 2020 and 2024, whilst continuing to improve our operating margins.
“Looking forward, the investments we have made in 2022 will enhance the business this year and beyond.
“With whisky stocks to satisfy demand into the next decade already acquired and investment-driven cash burn having already peaked as we pivot towards sustained profitability, we are well positioned to continue expanding our business, benefit from the growing appreciation globally of small batch whisky and the key underlying trends of convenience, premiumisation and digitalisation which are set to continue to drive consumer behaviour.“
Hunter also thanked Ridley for his leadership, while praising Dane.
“Since joining in 2020, Andrew has demonstrated strong operational and commercial credentials in addition to his proven financial skillset.
“He knows the business and ASC’s wider market structure well and has been instrumental in developing and implementing the group’s growth strategy in conjunction with the wider executive team.”
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