FY25 at a glance – revenue down, losses driven by US disruption
The Artisanal Spirits Company (owner of The Scotch Malt Whisky Society, Single Cask Nation, J.G. Thomson and Artisan Casks) posted a tough set of FY25 numbers after a late-year hit in the US. Revenue fell to £19.9 million from £23.6 million, gross margin slipped to 57%, and adjusted EBITDA came in at a £1.9 million loss. Reported EBITDA was a £2.4 million loss and loss before tax widened to £7.0 million.
Management pins most of the decline on two previously flagged US items: a government shutdown that blocked anticipated shipments, and a strategic route-to-market (RTM) change. Strip out the Americas and Group revenue declined by about £0.4 million (c2%).
| Key FY25 numbers | FY25 | FY24 |
|---|---|---|
| Revenue | £19.9m | £23.6m |
| Gross margin | 57% | 64% |
| Adjusted EBITDA | £(1.9)m | £1.1m |
| Reported EBITDA | £(2.4)m | £1.1m |
| Loss before tax | £(7.0)m | £(3.1)m |
| Loss after tax | £(7.2)m | £(3.3)m |
| Net debt | £31.5m | £25.5m |
| Cask inventory (NBV) | £28.3m | £27.8m |
| Cask inventory valuation (July 2024) | £102.0m | n/a |
What actually happened in the US – and why it matters
Two moving parts hurt FY25:
- US government shutdown in Q4 prevented about £2.4 million of shipments, which management says would have delivered around £1.8 million of EBITDA.
- RTM change triggered a revenue reversal of £1.1 million for stock expected to be returned, with a related £0.8 million EBITDA impact, plus a non-recurring £0.5 million operational expense in January 2025.
From FY26, the US will report on depletions, not shipments. Quick explainer: shipments are what the company sells into distributors; depletions are what sells out of distributors into the market. Moving to depletions should better align revenue with cash, speed up launches, and deliver about $1 million (£0.75 million) of cost savings over three years.
Opinion: painful, but logical. Control and visibility in the US should improve, especially paired with Single Cask Nation’s momentum and the ability to push member engagement directly.
Revenue mix – casks and venues cushioned the blow
Despite the US hiccup and softer consumer demand, ASC’s diversification helped:
- Cask sales up 13% year-on-year to £4.7 million – an important cash and balance sheet lever.
- Venues up 8% – consistent mid to high single-digit growth through the year.
- Single Cask Nation up 10% to £0.8 million – another solid year and back-to-back Independent Bottler of the Year recognition.
- Asia down 25% – still the main drag, particularly Taiwan. China and Japan showed membership growth of 2% and 5% respectively.
Cost discipline was evident: another £0.3 million of recurring savings, marketing cost per acquisition down by about one third, and an organisational redesign in Q4 expected to realise around £0.9 million of gross savings in FY26.
Membership and markets – steady base, selective growth
Underlying SMWS membership held flat at 39,700 (UK +1%, Asia -1%), with around 70% retention. The company highlighted record underlying recruitment in the UK and China. The Americas sat at roughly 8,100 members with retention improving from 63% to 65% helped by a loyalty scheme.
New franchise agreements in India and Vietnam bring long-term option value. Notably, India’s tariffs are expected to fall from 150% to 75% in 2026, and then to 40% over 10 years. Management expects only marginal early returns but views both markets as attractive long-term footholds.
Balance sheet, debt and the cask asset backdrop
Net debt rose to £31.5 million, reflecting the adjusted EBITDA loss, £2.2 million of interest, the £0.5 million US operational expense, and modest spirit and wood spend of £0.8 million. Importantly, the Group’s cask inventory NBV is £28.3 million, with an independent valuation in July 2024 of £102.0 million. A 2026 bank valuation applied, on average, is 200% of NBV. Management frames inherent values of between £50 million and £100 million based on these approaches.
Financing-wise, ASC refinanced with Santander in September 2025 – an increased facility of £13.5 million, 20bps lower headline margin, no financial covenants, and a 4-year term. The new inventory-secured RCF bears interest at 2.05% over Bank of England base rate.
Opinion: debt is sizeable, but the cask asset valuation provides a meaningful backstop. The improved banking terms and lack of financial covenants add welcome flexibility.
Operational platform – why the RTM reset could pay off
The US RTM shift is the central strategic change. Management expects tighter in-market execution, faster speed to market, and lower costs. Late 2025 saw US depletions return to growth after a tough first half, and that momentum has continued into early 2026. In parallel, SCN’s growing reputation should help broaden the Group’s reach in the States and internationally.
Elsewhere, the refreshed SMWS Signature range and simplified flavour navigation seem to be resonating – several bottlings reportedly sold out within hours or days. The new Artisan Casks luxury private cask programme launched in July 2025 and has early sales traction into 2026.
Guidance and current trading – steady start to FY26
The year has started solidly and FY26 guidance is unchanged. Growth in cask sales and better year-on-year revenue trends in Asia and America are offsetting a slower Europe where confidence is subdued. The Group reports no direct exposure to the Middle East conflict.
What I’m watching in 2026
- US depletions and membership – proof the RTM change is translating to revenue and EBITDA, plus delivery of c$1m (£0.75m) savings over three years.
- Asia stabilisation – any improvement from the 25% decline seen in 2025 would meaningfully help the Group’s margin mix.
- Cost delivery – the circa £0.9m gross savings from the Q4 redesign should be visible in the P&L.
- Cask monetisation – continued growth in trade cask sales and scaling of Artisan Casks to support cash generation.
- Financing costs and net debt trajectory – interest was £2.2m in FY25; watch for progress towards the stated aim of net cash generation in FY26.
Josh’s take – near-term bruise, medium-term opportunity
There is no sugar-coating a swing from £1.1 million EBITDA profit in 2024 to a £2.4 million loss in 2025. Gross margin fell, Asia remained difficult, and net debt rose. Those are the clear negatives.
But the complexion changes when you isolate the US one-offs and look at what ASC has built. The RTM pivot sets up better control in the US, recurring cost savings and cleaner cash conversion through depletions. Cask sales, venues and SCN are doing their jobs, and membership retention around 70% underlines a loyal core. The asset base – £28.3 million NBV with independent valuation references of £50 million to £100 million – is a meaningful underpin.
If the US transition beds in smoothly, Asia stops worsening, and cost actions land as planned, FY26 has the ingredients for a return to profitable growth. Execution now matters more than narrative – but the plan is credible, and the early read on 2026 is encouraging.
