Cult Wines, a major UK fine wine investment company, faces an uncertain future after its auditor warned of potential financial shortfalls without additional funding. The firm reported pre-tax losses of £5 million in 2024, a 43% drop in turnover, and net liabilities rising to £21.6 million.

Founded by former Apprentice finalist Tom Gearing, Cult has struggled amid a sector-wide slump worsened by US tariffs on EU imports. The company's difficulties reflect broader challenges in the fine wine market, which saw prices fall 2.5% last year according to Liv-ex's Fine Wine 100 index. Cult has reduced staff from 65 to 35 and claims revenue is improving despite the tough market.

Gearing dismissed the auditor's warning as "boilerplate language" and attributed the company's struggles to market conditions rather than fundamental business issues. The firm has also restated its 2023 figures due to an audit error involving a £890,000 invoice. With assets under management falling from £260 million to about £185 million, Cult's survival hinges on its ability to generate consistent cash flow in an increasingly challenging investment landscape.