English winemaker Chapel Down has revealed a boost from strong demand among millennial drinkers as it upgraded its profits guidance.

It came as the Kent-based company cheered a “high-quality” harvest so far this year as it benefited from warm temperatures in the UK.

Shares in the company lifted higher in early trading on Wednesday.

Chapel Down told shareholders that net sales grew by 19% to £9.4 million in the half-year to June 30, compared with a year earlier.

Boss James Pennefather told the Press Association that it has benefited from “millennials” choosing to drink sparkling wine at “informal occasions” such as birthday celebrations.

The firm saw growth supported by more venues selling its wine by the glass, as well as new listings from operators including The Gordon Ramsay Group and Handpicked Hotels.

Chapel Down said that it saw a “continued strong performance” in the third quarter of the year and has “confidence” in its trading plans for the final three months of the year.

As a result, it said adjusted earnings are now on track “to be materially ahead of market expectations”.

Meanwhile, net debt is also expected to be lower than market predictions after capital spending was lower than originally expected.

The company also said it believes its 2026 vintage will be “high quality” after completing more than half of its grape harvest for the year.

Mr Pennefather said: “The English region is coming into a multi-decade period of good temperatures for our vines, which were still green and in good condition after very little rain.”

Shares in the company were up 5.4% at 48.5p.