Lord Spencer Increases Stake in Chapel Down as Share Price Struggles

Conservative Party donor and billionaire Lord Spencer of Alresford has strengthened his position as the largest shareholder in Chapel Down Group, England’s premier winemaker, amidst declining share performance since its market debut.

The former Icap founder, who serves as a non-executive director, acquired an additional 450,000 shares through his investment vehicle IPGL, pushing his total ownership beyond 27 per cent. The move comes as Chapel Down’s shares have experienced a significant downturn, falling approximately 40 per cent since their December 2023 listing on London’s Alternative Investment Market (AIM).

Based in Kent, Chapel Down operates more than 1,000 acres of vineyards, with 750 acres in full production. The company’s prestigious partnerships include Ascot, The Boat Race, and the England and Wales Cricket Board. Despite listing at 55p, shares now trade at 34p, valuing the enterprise at roughly £58 million.

The shareholder roster includes notable figures such as Nigel Wray, the former Saracens rugby club chairman, holding 13.8 per cent, and Lord Ashcroft, maintaining a 2.6 per cent stake. The company also boasts a substantial retail investor base of approximately 10,000 shareholders.

Recent management changes have seen James Pennefather appointed as chief executive, joining from The Lakes Distillery. His arrival coincides with the departure of Andrew Carter and CFO Rob Smith, with a new finance chief announcement expected imminently.

The company’s strategic review in June 2024 concluded without identifying any transactions that would enhance long-term shareholder value. However, recent trading updates suggest improved performance in the latter half of the year, offering a glimmer of hope for investors.