Why Gusbourne is going private

It is said that making fine wine requires patience, vision and a touch of alchemy. Running a publicly listed wine company, however, demands considerably more bureaucracy, not to mention a willingness to stomach the market’s wild mood swings. And so, with a deep breath, Gusbourne’s shareholders have voted to delist from London’s Alternative Investment Market (AIM). The post Why Gusbourne is going private appeared first on The Drinks Business.

Mar 13, 2025 - 11:57

It is said that making fine wine requires patience, vision and a touch of alchemy. Running a publicly listed wine company, however, demands considerably more bureaucracy, not to mention a willingness to stomach the market’s wild mood swings. And so, with a deep breath, Gusbourne’s shareholders have voted to delist from London’s Alternative Investment Market (AIM). Gusbourne English Sparkling wine bottles

On 7 March 2025, shareholders gathered at Fieldfisher LLP in London and overwhelmingly supported a proposal to remove Gusbourne Plc from AIM. A formality at best, given that 66.8% of the company is controlled by Belize Finance Ltd, an entity associated with Lord Ashcroft, the move sets the scene for Gusbourne’s return to private ownership. The delisting is set to take effect at 7am on 19 March 2025. The decision follows a strategic review in which the board weighed the costs and benefits of remaining public. The verdict? Staying on AIM was simply too expensive and cumbersome. "The considerable cost and management time and the legal and regulatory burden associated with maintaining the Company’s admission to trading on AIM are, in the Board’s opinion, disproportionate to the benefits," Gusbourne said in its official announcement. The estimated savings? At least £250,000 per annum — funds that will now be channelled into the company’s core business of producing English Sparkling wines.

Liquidity, volatility and market perception

Beyond cost concerns, Gusbourne’s delisting is also about control. The company’s relatively illiquid shares — where small trades could send prices soaring or crashing — were proving unhelpful. “Market volatility has a materially adverse impact on the Company’s status within its industry,” noted the board, adding that fluctuations also affected staff morale and investor confidence. Further, being publicly listed came with constraints. With delisting, the company expects to make decisions “more quickly” and operate under “more flexible requirements.” In other words, Gusbourne can focus on winemaking without AIM’s additional layer of scrutiny.

What happens next?

For shareholders who wish to trade Gusbourne’s stock post-delisting, a secondary market trading facility will be established via JP Jenkins, though liquidity remains a question mark. Meanwhile, corporate governance will shift: non-executive chairman Jim Ormonde, along with non-executive directors Ian Robinson and Lord Arbuthnot, will step down, leaving behind a smaller, more streamlined board. As for the company’s future, Gusbourne remains committed to its long-term vision. The past few years have seen international expansion and the cultivation of a brand synonymous with luxury. That said, the UK market remains challenging, with 2024 seeing revenue growth flatten and economic headwinds pressuring the hospitality sector. The great irony, of course, is that while Gusbourne’s share price has been undervalued on AIM, its wines have been anything but. The estate’s sparkling and still wines continue to win accolades, proving that while financial markets may be fickle, good terroir endures.