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Distil PLC (DIS)

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Thursday 25 October, 2018

Distil PLC

Interim Results

RNS Number : 1029F
Distil PLC
25 October 2018
 

Distil plc

 

("Distil" or the "Group")

 

Interim Results for the six months ended 30th September 2018

 

 

Distil (AIM: DIS), owner of premium drinks brands; RedLeg Spiced Rum, Blackwoods Gin and Vodka, Blavod Black Vodka, Jago's Cream Liqueur and Diva Vodka, today announces its unaudited interim results for the six months ended 30th September 2018.

 

Operational review:

 

·      New listings achieved in France and Canada

·      Increased investment in marketing support at point of sale

·      Development of new gift packaging and miniature bottle formats

·      Implementation of operational cost savings

 

Financial Review - versus same period last year:

 

·      Revenue increased by 42.3% to £1.164m (2017: £0.818m)

·      Gross profit increased by 54.7% to £710k (2017: £459k)

·      Volume (litres) increased by 30.7%

·      Investment in brand marketing and promotion increased by 56.8% to £312k (2017: £199k)

·      Other administration costs increased by 9.7% to £293k (2017: £267k)

·      Operating profit of £101k (2017: loss £21k)

·      Cash reserves of £957k (2017: £690k)

 

Don Goulding Executive Chairman, commenting on these results said:


"The strong growth momentum enjoyed in the previous financial year has continued into the six months to 30 September 2018 and I am pleased to report healthy year-on-year increases in revenue, profit and cash. 

Investment in marketing support increased ahead of sales as we continued to build our brands. Additional funds were also used to develop gift packaging for RedLeg Spiced Rum and Blackwoods Gin, ready for launch ahead of the Christmas trading period, together with a range of miniature bottle formats.

Operational improvements together with significant volume growth during the period have assisted gains in gross profit margin and contribution margin. 

We have also ensured all planned measures to maximise benefits and offset possible risks relating to the UK exit from the EU have been finalised and fully implemented, well ahead of the anticipated date of March 2019."

Executive Chairman's Statement

 

Results versus same period last year

 

We delivered further year-on-year sales and volume growth across our brands during the period. Sales revenue advanced 42% whilst combined case volume grew 31% despite a decline of Blavod licensed sales in Eastern Europe. RedLeg Spiced Rum and Blackwoods Gin delivered particularly strong performances across the retail segment.

 

Gross Profit margin improved to 61% from last year's previous high of 56% whilst brand marketing investment increased by 57%, feeding through to an improved contribution margin of 34%, up from 32% in the same period last year. 

 

Our strong brand performance, operational improvements and continued tight control of overheads enabled us to deliver a maiden first half profit during the period.

 

Operations

 

Having a strong consumer promotional programme in place, our main focus during the first half has been to work with our production and packaging partners to ensure efficient and cost effective supply to our customers and distributors especially during the unusually hot summer which resulted in higher than usual promotional demand spikes.

 

During this time, we maintained supply throughout and improved margins.

 

Outlook

 

The important Christmas trading period is always aggressively contested but likely to be particularly competitive this year within the Spirits market as all categories fight to regain market share from gin. In the growing gin category, we are likely to see the variety of new brands and flavours competing for distribution, trial and share.

 

Our promotional plans are in place supported by additional PR and social media campaigns, new cocktail recipes together with new premium gift packaging for Blackwoods Gin and RedLeg Spiced Rum, details of which will be shown on our websites in early November.

 

 

 

 

 

Distil plc - Half Year Results

 

 

 

Consolidated comprehensive interim income statement

 

 

 

 

 

 

 

 

 

Six months ended 30 September 2018

Six months ended 30 September 2017

Year

ended 31 March 2018

 

Un-audited

Un-audited

Audited

 

£'000

£'000

£'000

 

 

 

 

Revenue

1,164

818

2,014

Cost of sales

(454)

(359)

(842)

Gross profit

710

459

1,172

Administrative expenses:

 

 

 

Advertising and promotional costs

(312)

(199)

(465)

Other administrative expenses

(293)

(267)

(522)

Share based payment expense

-

(11)

(22)

Depreciation & amortization

(4)

(3)

(6)

Total administrative expenses

(609)

(480)

(1,015)

Operating profit/(loss)

101

(21)

157

Finance income

-

-

-

Finance expense

-

-

-

Profit/(loss) before tax from continuing operations

101

(21)

157

Income tax

-

-

-

Profit/ (loss) for the period

101

(21)

157

 

 

 

 

Profit/(loss) per share:

 

 

 

From continuing operations

 

 

 

Basic (pence per share)

0.02

(0.01)

0.03

Diluted (pence per share)

0.02

(0.01)

0.03

 

 

 

 

 

 

 

Consolidated interim statement of financial position

As at 30 September 2018

As at 30 September 2017

As at 31 March 2018

 

 

Un-audited

Un-audited

Audited

 

 

£'000

£'000

£'000

 

ASSETS

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

128

61

95

 

Intangible fixed assets

1,553

1,542

1,551

 

Total non-current assets

1,681

1,603

1,646

 

 

 

 

 

 

Current assets

 

 

 

 

Inventories

221

228

177

 

Trade and other receivables

519

378

395

 

Cash and cash equivalents

957

690

1,031

 

Total current assets

1,697

1,296

1,603

 

Total assets

3,378

2,899

3,249

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

(263)

(99)

(235)

 

Total current liabilities

(263)

(99)

(235)

 

Total liabilities

(263)

(99)

(235)

 

 

 

 

 

 

Net Assets

3,115

2,800

3,014

 

 

 

 

 

 

EQUITY

 

 

 

 

Equity attributable to equity holders of the parent

 

 

 

 

Share capital

1,292

1,291

1,292

 

Share premium

2,908

2,884

2,908

 

Share based payment reserve

83

72

83

 

Accumulated deficit

(1,168)

(1,447)

(1,269)

 

Total equity

3,115

2,800

3,014

 

 

 

 

 

 

             

 
 

Consolidated interim cash flow statement

 

 

 

 

Six months ended 30 September 2018

Six months ended 30 September 2017

Year ended 31 March 2018

 

 

Un-audited

Un-audited

Audited

 

Cashflows from operating activities

£'000

£'000

£'000

 

Profit/(loss) before tax

101

(21)

157

 

Adjustments for non-cash/no-operating items:

 

 

 

 

Expenses settled by shares

-

-

17

 

Depreciation

4

3

6

 

Share based payment expense

-

11

22

 

 

105

(7)

202

 

 

 

 

 

 

Movements in working capital

 

 

 

 

(Increase)/decrease in inventories

(44)

(29)

22

 

Increase in accounts receivables

(138)

(49)

(66)

 

Increase/(decrease) in trade payables

42

(128)

8

 

Cash used in operations

(140)

(206)

(36)

 

Net cash (used in)/generated by operating activities

(35)

(213)

166

 

 

 

 

 

 

Cashflows from investing activities

 

 

 

 

Purchase of property plant & equipment

(37)

-

(37)

 

Expenditure relating to the acquisition and registration of licenses and trademarks

(2)

(7)

(16)

 

Net cash used in investing activities

(39)

(7)

(53)

 

 

 

 

 

 

Cashflows from financing activities

 

 

 

 

Proceeds from issue of shares

-

-

8

 

Net cash generated by financing activities

-

-

8

 

 

 

 

 

 

 

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

(74)

(220)

121

 

Cash & cash equivalents at the beginning of the period

1,031

910

910

 

 

 

 

 

 

Cash & cash equivalents at the end of the period

957

690

1,031

 

 

 

 

 

 

             
 

 

Notes to the interims accounts:

 

1.     Basis of preparation

 

This interim consolidated financial information for the six months ended 30 September 2018 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 2018, 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 2018 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 2017 are also unaudited.

 

IFRS15 - Accounting Policies and Transition

 

The directors have reviewed the way that the group accounts for revenues from contracts with customers and has adopted the new reporting standard on revenue recognition, IFRS 15. Following that review, the directors did not consider it necessary to change the group's accounting policies with respect to revenue recognition. There have been no changes to recognition or measurement of revenue or to the consolidated statements of comprehensive income or financial position as a consequence of adopting IFRS15.

 

2.     Availability

 

Copies of the interim report will be available from the 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 24 October 2018.

 

For further information please contact:

 

 

Distil plc

 

Don Goulding Executive Chairman

Shan Claydon, Finance Director

Tel: +44 207 352 2096

SPARK Advisory Partners Limited (NOMAD)

 

Neil Baldwin

Mark Brady

Tel +44 203 368 3550

Turner Pope Investments (TPI) Limited (Broker)

 

Andy Thacker

Tel +44 203 621 4120

 

 

 

 

 

 

 

 

 

 


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