TIDMDIS
RNS Number : 1132C
Distil PLC
15 October 2020
Distil plc
("Distil" or the " Group ")
Interim Results for the six months ended 30 September 2020
Distil (AIM: DIS), owner of premium drinks brands including
RedLeg Spiced Rum, Blackwoods Gin and Blavod Black Vodka, is
pleased to announce its unaudited interim results for the six
months ended 30 September 2020.
Operational review:
-- RedLeg Banana Rum launched into the UK market
-- Re ady-to-drink ("RTD") RedLeg Pineapple Rum with Franklin
& Sons Ginger Ale launched and listed in major UK retailers
-- Increase in Marketing headcount and investment
-- Increase in Product Development headcount, resources and investment
Financial Review - versus same period last year:
-- Revenue increased by 128% to GBP1,878k (2019: GBP824k)
-- Gross profit increased by 107% to GBP1,032k (2019: GBP499k)
-- Volume (litres) increased by 87%
-- Investment in brand marketing and promotion increased by 158% to GBP565k (2019: GBP219k)
-- Other administration costs increased by 10% to GBP307k (2019: GBP279k)
-- Operating profit of GBP154k (2019: GBP1k)
-- Cash reserves at period end of GBP570k (2019: GBP836k)
Don Goulding, Executive Chairman , commenting on these results
said:
" Our team responded well to both demand volatility and supply
chain challenges during the first six months of this pandemic. We
focused on providing customer support, and increased marketing
investment together with greater flexibility. This has allowed us
to adapt rapidly to market changes, customer needs, and ensure
continuity of product supply throughout. Increased headcount and
investment in new product development enabled the launch of new
lines with more to follow.
Lockdowns and imposed restrictions, particularly on the
hospitality sector and international travel, means we have seen a
significant short term shift in product mix and source of business
away from the On Trade and Travel Retail toward Grocery and online
retail channels as consumers stayed home.
While the nature and speed of market recovery is uncertain we
will remain responsive, flexible and efficient to ensure we exit
this year in a stronger position.
Our priorities remain the welfare of our staff, our business,
supporting our customers and our community."
Executive Chairman's Statement
Spirits have performed well as consumers served their favourite
cocktails at home during lockdown. Rum and gin categories continue
to perform well, with UK market audit data * for the 26 weeks to
September suggesting flavoured rum grew 35% in value.
On Trade has suffered from full closure during the spring and a
slow reopening with subsequent curfews, while Travel retail has
been hit hard with sales moving to Grocery and online retail. Our
duty free market data suggests this sector has declined by c60% to
80% y ear-on-year in the key European and Eastern European
markets.
A key development is our decision to make a threefold increase
in new product development investment, including employing
additional talent to assist build our capability. We have already
seen the benefits of this move with the introduction of RedLeg
Banana Rum , announced in September , revamped packaging for the
entire RedLeg range, and a new ready - to - drink product, with
more innovation planned to be brought to market in coming months in
preparation for the market return.
Results versus same period last year
Combined sales revenues increased 128% to GBP1,878k, with
exports advancing 165% and UK sales increasing 121% .
Brand mix was affected by Covid -19 related restrictions and
many consumers staying home. Blackwoods Gin sales improved by 74%,
RedLeg Rum increased 139%, Blavod Vodka however, with its sales
mainly through Duty Free and Travel Retail , fell by 70%.
The Company achieved an Operating profit of GBP154k (2019 :
GBP1k).
Cash reserves are down year - on - year by GBP266k as trade and
other receivable s increased by GBP778K reflecting the increase in
sales toward the period end. Net assets increased by GBP480k to
GBP3,653K.
Production costs per unit increased mainly due to reduced line
efficiencies through social distancing and other Covid -19 related
measures. This has resulted in our margins moving from 61% to 55%
in the short term.
Operations
The team has been agile in its efforts to minimise disruption to
operations and supply chain, including building a robust inventory
of raw materials and finished goods in order to manage supply risk
in the event of further restrictions.
To assist with our new product development ambitions, we have
agreed an ongoing partnership with a Master Distiller, in order to
accelerate liquid development.
In addition, we have worked with suppliers to transition to
sustainable packaging across the portfolio in line with our CSR
commitments, and have certified all products in the range to be
vegan and gluten-free.
O utlook
As previously mentioned, the Group has taken positive steps to
respond to our relevant challenges and we expect to exit 2020 in a
stronger position. However, due to uncertainties regarding m
ovement restrictions and sector closures relating to the Covid-19
pandemic we consider it prudent not to provide market guidance for
the full financial year to March 202 1.
Distil plc - Half Year Results
Consolidated comprehensive interim
income statement
----------- ----------- ------------
Six months Six months
ended 30 ended 30 Year
September September ended 31
2020 2019 March 2020
Un-audited Un-audited Audited
GBP'000 GBP'000 GBP'000
Revenue 1,878 824 2,441
Cost of sales (847) (325) (995)
----------- ----------- ------------
Gross profit 1,031 499 1,446
Administrative expenses:
Advertising and promotional costs (565) (219) (665)
Other administrative expenses (307) (279) (597)
Share based payment expense (5) - -
Total administrative expenses (877) (498) (1,262)
Operating profit 154 1 184
Finance income - - -
Finance expense - (2) (2)
Profit/(loss) before tax from continuing
operations 154 (1) 182
Income tax 64 - 76
----------- ----------- ------------
Profit/(loss) for the period 218 (1) 258
----------- ----------- ------------
Profit/(loss) per share:
From continuing operations
Basic (pence per share) 0.04 (0.00) 0.05
Diluted (pence per share) 0.04 (0.00) 0.05
Consolidated interim statement of financial As at 30 As at 30 As at 31
position September September March 2020
2020 2019
Un-audited Un-audited Audited
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Right-of-use asset - 37 -
Property, plant and equipment 151 143 153
Intangible fixed assets 1,586 1,566 1,577
Deferred tax asset 140 - 76
----------- ----------- ------------
Total non-current assets 1,877 1,746 1,806
Current assets
Inventories 405 383 349
Trade and other receivables 1,157 379 543
Cash and cash equivalents 570 836 858
----------- ----------- ------------
Total current assets 2,132 1,598 1,750
----------- ----------- ------------
Total assets 4,009 3,344 3,556
----------- ----------- ------------
LIABILITIES
Current liabilities
Trade and other payables (356) (133) (126)
Lease liability - (38) -
----------- ----------- ------------
Total current liabilities (356) (171) (126)
----------- ----------- ------------
Total liabilities (356) (171) (126)
----------- ----------- ------------
Net Assets 3,653 3,173 3,430
----------- ----------- ------------
EQUITY
Equity attributable to equity holders
of the parent
Share capital 1,292 1,292 1,292
Share premium 2,908 2,908 2,908
Share based payment reserve 88 83 83
Accumulated deficit (635) (1,110) (853)
----------- ----------- ------------
Total equity 3,653 3,173 3,430
----------- ----------- ------------
Consolidated interim cash flow statement
----------- ----------- -------------
Six months Six months Year ended
ended 30 ended 30 31 March
September September 2020
2020 2019
Un-audited Un-audited Audited
Cashflows from operating activities GBP'000 GBP'000 GBP'000
Profit/(loss) before tax 154 (1) 182
Adjustments for non-cash/non-operating
items:
Finance expense - 2 2
Amortisation - 25 49
Depreciation 7 6 13
Share based payment expense 5 - -
166 32 246
Movements in working capital
Increase in inventories (56) (71) (37)
Increase in trade receivables (614) (172) (336)
Increase in trade payables 230 35 28
----------- ----------- -----------
Cash used in operations (440) (208) (345)
Net cash used in operating activities (274) (176) (99)
Cashflows from investing activities
Purchase of property plant & equipment (5) (20) (37)
Expenditure relating to the acquisition
and registration of licenses and trademarks (9) (10) (21)
----------- ----------- -----------
Net cash used in investing activities (14) (30) (58)
Cashflows from financing activities
Interest on lease liabilities - - (2)
Repayment of lease liabilities - (26) (51)
----------- ----------- -----------
Net cash used in financing activities - (26) (53)
Net decrease in cash and cash equivalents (288) (232) (210)
Cash & cash equivalents at the beginning
of the period 858 1,068 1,068
Cash & cash equivalents at the end of the
period 570 836 858
----------- ----------- -----------
Notes to the interims accounts:
1. Basis of preparation
This interim consolidated financial information for the six
months ended 30 September 2020 has been prepared in accordance with
AIM Rule 18, 'Half yearly reports and accounts'. This interim
consolidated financial information is not the Group's statutory
financial statements within the meaning of Section 434 of the
Companies Act 2006 (and information as required by section 435 of
the Companies Act 2006) and should be read in conjunction with the
annual financial statements for the year ended 31 March 2020, which
have been prepared under International Financial Reporting
Standards (IFRS) and have been delivered to the Register of
Companies. The auditors have reported on those accounts; their
report was unqualified, did not include references to any matters
to which drew attention by way of emphasis of matter without
qualifying their report and did not contain any statements under
Section 498 (2) or (3) of the Companies Act 2006.
The interim consolidated financial information for the six
months ended 30 September 2020 is unaudited. In the opinion of the
Directors, the interim consolidated financial information presents
fairly the financial position, and results from operations and cash
flows for the period. Comparative numbers for the six months ended
30 September 2019 are also unaudited.
2. Availability
Copies of the interim report will be available from Distil's
registered office at 201 Temple Chambers, 3-7 Temple Avenue, EC4Y
0DT and also on www.distil.uk.com .
3. Approval of interim report
This interim report was approved by the Board on 14 October
2020.
For further information please contact:
Distil plc
Don Goulding Executive Chairman Tel: +44 203 283 4007
Shan Claydon, Finance Director
----------------------
SPARK Advisory Partners Limited
(NOMAD)
----------------------
Neil Baldwin Tel +44 203 368 3550
Mark Brady
----------------------
Turner Pope Investments (TPI)
Limited (Broker)
----------------------
Andy Thacker / Zoe Alexander Tel +44 20 3657 0050
----------------------
*Nielsen September 2020
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR MIBATMTTBBPM
(END) Dow Jones Newswires
October 15, 2020 02:00 ET (06:00 GMT)
Grafico Azioni Distil (AQSE:DIS.GB)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Distil (AQSE:DIS.GB)
Storico
Da Feb 2024 a Feb 2025
