Glad Q3 tidings….
Distil has performed strongly in its core Q3 trading period covering October to December despite a backdrop of economic uncertainty and generally weak consumer demand. Against a very tough comparative of 29% growth in Q3 last year, Distil has reported revenue growth of 7% for Q3 this year. This continues to be driven by RedLeg Spiced Rum, with volume sales increasing by 16% in an intensely competitive market. With the company remaining positive on the outlook for Q4, it expects full year profits to be ahead of last year and broadly in line with market expectations.
20 Jan 20
A challenging first half ……
Distil delivered a breakeven result at the interim stage despite challenging trading conditions, particularly in the UK unflavoured gin market. The previous stock overhang, driven by the supply chain ahead of the previous end-March Brexit date and which also contributed to the H1 sales performance, has now been cleared. Distil has also secured the Mardi Gras trademark in Europe and the USA, which will drive further NPD (new product development) initiatives. The core spiced rum market continues to see growth and new RedLeg brand extension launches should underpin a more robust sales performance in the second half. Combined with continued cost management discipline, Distil expects FY20E operating profit to remain in line with previous forecasts. We have revised our outer year forecasts however to remain prudent in light of ongoing market headwinds.
25 Oct 19
Mixing it up
Distil has announced the launch of a pre-mixed rum and cola drink, which takes RedLeg Spiced Rum into the high growth ready-to-drink (RTD) category. This is a new brand collaboration with Franklin & Sons, the premium soft drink, tonic and mixer brand, owned by Global Brands Ltd. This new venture brings two commercial advantages to Distil, firstly through incremental revenues and secondly through the introduction of the RedLeg Spiced Rum brand to new consumers.
02 Sep 19
Another year of progress…..
Distil delivered results in line with our forecast expectation at EBITDA and PBT level. FY19 saw a 19% turnover increase, supported by gross margin expansion, with EBITDA and PBT marginally ahead after a 48% increase in brand investment through its advertising and promotional activities. Net cash advanced by almost £40K (+4%) over the year on the back of an operating cash inflow of £85K. Innovation continues apace, with the recent launch of RedLeg Caramelised Pineapple Spiced Rum, along with new gift packaging and miniature bottle formats for RedLeg and Blackwoods Gin. We are reflecting our more cautious outlook on short-term UK consumer spending prospects in our new forecasts, primarily for the current FY20E year.
10 Jun 19
Q4 trading update
Distil has published a trading update on its Q4 performance, ahead of its prelims announcement next month. Revenues and volumes fell in Q4 as a result of Distil’s successful promotional activities in the peak Q3 period alongside the late timing of Easter. These declines were however in line with management expectations. Distil’s full year performance is therefore anticipated to be in line with current market expectations, and our forecasts remain unchanged. Distil has also announced the welcome launch of a new flavour variant to its successful RedLeg spiced rum brand. Sales of this brand extension, Caramelised Pineapple, will commence in June, initially with a soft launch through the on-trade channel only.
07 May 19
Small Cap Feast
SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 2019. Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019
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07 May 19
Small Cap Feast
Circassia Pharma (CIR.L) - specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb. Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019. Chaarat Gold Holdings—RTO, the Company intends to acquire Kapan Mining and Processing CJSC, which owns the Shahumyan mediumsized polymetallic mine in Kapan in the Republic of Armenia. No raise, market cap of £110.1m, due early Feb
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21 Jan 19
Positive P&L dynamics …..
On the back of strong revenue growth of 42%, Distil has delivered interim profits at operating and pre-tax level of £101K, compared with last year’s loss of £21K. This represents an operating profit margin of just under 9%, with the company’s perennial cost control complemented by a welcome increase in gross margin driving this 11% swing at the operating margin level. The contribution margin increased by 240bps, despite the continued investment in brand marketing and promotion, which rose by 57% year-on-year. Net cash stood at £957K at the end of the period. We leave estimates unchanged ahead of the key Christmas period.
25 Oct 18
Small Cap Breakfast
Nucleus Financial—independent wrap platform provider . FYDec17 revs £40.36m and PBT of £5.1m. Offer TBA. Due late July. Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa Immotion Group - aims to become the market leader in "out of home" Immersive Entertainment Experiences. Offer TBA. Due 12 July Yellow Cake will use its expertise to generate value through the ownership of physical U3O8 (Uranium) together with a range of activities and opportunities connected with owning physical U3O8. Acquiring supply contract for up to $170m. Due Early July. Strongbow Exploration (TSX:SBW) intends to dual list on AIM. Holds rights to the South Crofty underground tin mine, a former producing tin mine located in the towns of Pool and Camborne, Cornwall . The project is estimated to require the Company to raise £25 million over the next 18 months to progress to a production decision. Offer TBS. Due June.
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04 Jul 18
A successful year of both profit growth…
Following the substantial reduction in H1 operating loss, Distil had a very strong H2, which resulted in FY18 growing to £157K from £10K in FY17. H2 PBT came in at £178K, some 135% higher than the prior year figure of £76K. Turnover growth of 23% resulted from strong - and broadly similar - volume growth across the core RedLeg spiced rum and Blackwoods gin brands, supported by a return to good growth at Blavod. Total volume growth was 31% and was strong across all trade channels, benefitting from new listings and listing extensions over the past two years. Operating cash flow of £166K saw the year end cash position improve to £1031K (vs £910K last year).
08 Jun 18
Small Cap Breakfast
Anexo -specialist integrated credit hire and legal services group. Offer TBA. Due 19 June. i-nexus—develops and provides strategy execution software to assist global enterprises in effective execution of their strategic plans and initiatives looking to jon AIM. Offer TBC, expected 19 June Yellow Cake will use its expertise to generate value through the ownership of physical U3O8 (Uranium) together with a range of activities and opportunities connected with owning physical U3O8. Acquiring supply contract for up to $170m. Offer TBA. Tekmar— technology provider of protection systems for subsea cable, umbilical and flexible pipes and offshore engineering services—Offshore wind farms and Oil & Gas. Revenue of £21.9m and Adjusted EBITDA of £4.9m Offer TBA Knights Group— UK regional legal and professional services businesses. FYApr18 rev £34.9 million and adjusted operating profit was £6.8 million excluding Turner Parkinson (acquiring on IPO). Offer TBA Aquis Exchange—a founder-led, pan-European Multilateral Trading Facility and exchange and regulatory technology developer and service provider is looking to join AIM. Offer TBC, expected 20 June. TransGlobe Energy Corporation—an independent international upstream oil and gas company with headquarters in Calgary, Canada is looking to join AIM. No Capital to be raised, market cap of £131m. Expected 29 June Block Energy— UK based oil exploration and production company whose main country of operation is the Republic of Georgia. Raising £5m at 4p. Mkt cap £10.3m. Due 11 June. Strongbow Exploration (TSX:SBW) intends to dual list on AIM. Holds rights to the South Crofty underground tin mine, a former producing tin mine located in the towns of Pool and Camborne, Cornwall . The project is estimated to require the Company to raise £25 million over the next 18 months to progress to a production decision. Offer TBS. Due June.
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08 Jun 18
Small Cap Breakfast
KRM22, a closed-ended investment company with a particular focus on risk management in capital markets, is looking to join AIM. Offer tbc, expected 30 April 2018 Serinus Energy -international upstream oil and gas exploration and production company. Its principal assets are located in Romania (development phase) and Tunisia (production phase). Raising c.£10m. Offer TBA. Due mid May.
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20 Apr 18
Strong peak Christmas trading….
Distil’s full-year outturn is forecast to be in line with market expectations, following strong trading across its peak Q3 (Oct – Dec) period in what remains a highly competitive market. Despite playing up against the toughest quarterly comparative of last year, when revenue rose 71%, this Q3 delivered revenue (and volume) growth of 19%. Growth was strong across all trade channels, most notably online, albeit from a much smaller base than the On Trade and Off Trade channels. The resultant two-year quarterly growth rate is therefore the best achieved thus far this year, with Q3 revenue in the current year more than double that achieved in Oct – Dec 2015. Our full-year forecasts therefore remain unchanged.
16 Jan 18
Strong first half results….......
Distil has delivered a strong set of results against last year’s pipeline fill from winning new listing contracts with major retailers. This effect was most marked in Q2, with Q1 also benefiting this year from the later timing of Easter. Top line revenues increased by 23% to £818K, with gross margin held broadly flat. The operating loss was cut by 68% to £21K (vs £66K last year), with the corresponding operating loss margin improving to 2.6% from 9.9% last year. The key RedLeg and Blackwoods Gin brands continue to deliver value and volume growth, outperforming their respective categories, underlining their brand strengths and underpinned by continuing brand investment.
24 Oct 17
Small Cap Breaskfast
AfriTin Mining—Demerger from Bushveld Minerals (BMN.L). Offer TBA. Due 6 Nov. The Uis Tin project (Namibia) is considered the flagship tin asset within the portfolio, as this was once the largest open cast tine mine of its kind in the world . Novacyt S.A.—Sch1 from the international diagnostics group, generating revenues from the sale of clinical products used in oncology, microbiology, haematology and serology testing. Offer to raise £8.8m at 59.38p with a value of £22.4m. Expected 01 Nov. Footasylum Ltd—UK-based fashion retailer focusing on the branded footwear and apparel markets announced its intention to seek admission to AIM. Expected value between £130m and £150m. Due Nov 2017. Central Asia Metals (CAML) -RTO of Lynx Resources. Anticipated market capitalisation at Admission: £404.8m. Raising £113m at 230p. Acquiring the SASA zinc-lead mine in Macedonia from Solway Industries. Due 15 Dec. OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m. Orogen plc, to be renamed Sosandar plc on Admission. Sosandar is an online womenswear brand specifically targeted at a generation of women who have graduated from younger online and high street brands, and are looking for affordable clothing with a premium, trend-led aesthetic. Offer to raise £5.3m with market cap of £16.1m, expected 2 November 2017 OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected late October .
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24 Oct 17
A breakthrough year…… …..delivering maiden profit on owned brands
Distil has had another strong year of sales and volume progression, which has culminated in the company delivering a maiden profit from its owned brands. This has been driven once again primarily through the RedLeg Spiced Rum and Blackwoods Gin and Vodka brands, which have benefited from achieving further listing gains in both the supermarket and pub channels. These brands have capitalised on the continuing growth of premium spirits and the rise of the cocktail phenomenon across an ever broader spectrum of ontrade formats. Distil is well-positioned to benefit from these trends in the UK and export markets from its existing brand portfolio and potential new product development. On the basis of FY17’s forecast beat, we have raised our FY18 and FY19 PBT forecasts, and we also initiate on FY20.
07 Jun 17
Small Cap Breakfast
Touchstone Exploration— Oil exploration and production company active in the Republic of Trinidad and Tobago. Interests of approximately 90,000 gross acres. Production c. 1,300 boepd. Raising £1.45m. Expected mkt cap £7.5m. Due 26 June. I3 Energy –Schedule 1. Independent oil and gas company with assets and operations in the UK. Offer TBC, 7 June admission. Verditek— Schedule 1 update. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission in Early June Tiso Blackstar Group—Schedule 1 update. Media, entertainment and marketing solutions group/ £160m mkt cap. Admission only. Expected late June. ScotGems—Admission due 26 June. Seeking £50-£100m. To investing in a diversified portfolio of Small Cap Companies listed on global stock markets DP Eurasia—Intention to float from the exclusive master franchisee of the Domino's Pizza brand in Turkey, Russia, Azerbaijan and Georgia . £20m primary raise plus a partial vendor sale. Film Finances—Sky News reports that ‘movie financing company with credits including the Hollywood hits La La Land and Nocturnal Animals is plotting a blockbuster premiere on the London stock market that will value it at several hundred million pounds.’ Expected ‘during the summer’. AIB—Intention to float from AIB, Ireland's leading retail and commercial bank . The Minister for Finance intends to sell approximately 25% of the Ordinary Shares of AIB. Prospectus and announcement of the price range due in mid-June 2017. Curzon Energy—Report on Proactive Investors of intended LSE float this year with acquisition of coal bed methane assets in Oregon. Looking to raise £3m plus. NLB Group—financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock Exchange listing with GDRs on the LSE. Expected mid June. Flying Brands (FBDU.L)—Prospectus approved by FCA. RTO of Stone Checker Software, supplier of technology solutions in the field of kidney stone analysis and prevention. Has raised £550k at 3p. Subject to GM on 15 Jun. Kuwait Energy— $150m raise plus vendor offer. Admission due June. 2p reserves 810.0 mmboe
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07 Jun 17
Successful Christmas trading leads to...........forecast upgrades
On the back of a very strong Q3 trading period, with revenues up by over 70% and volumes by 56%, the Board now anticipates that Distil’s FY17 results “will be ahead of current market expectations”. We are consequently raising our revenue forecasts for the next three years, which also see improvements to our bottom line PBT projections. Brand marketing spend growth of 88% in Q3 was running ahead of revenue growth, reflecting the ongoing brand investment across the product portfolio. This dilutes the impact of operational leverage, but still sees our previous PBT loss of c £120K educe by to thirds to £40K. A strong Q4 performance could potentially see Distil achieve breakeven, but we prefer to err on the side of prudence at this stage.
17 Jan 17
Further loss reduction at interim stage
Distil has delivered further strong progress in its interim results. These mirror the pattern of last year’s interims with a substantial reduction in operating losses, new major retail listings, another full TTB approval for sales into the US and a strong volume uplift across key brands. In summary, Distil is continuing the process of brand building across all channels, with a clear operational focus on the development of its key brands in its key markets.
31 Oct 16
A year of significant progress in the UK…
FY16 marks a year of major progression for Distil with a substantial increase in turnover and a dramatic reduction in the operating loss, despite a marked step up in brand marketing costs and difficult trading conditions in Eastern Europe continuing to adversely impact sales of Blavod, the black vodka brand. Following its TTB approval, shipments of Blavod have been resumed into the USA, after an absence of several years. RedLeg Spiced Rum achieved a significant breakthrough in the UK, winning listings at two of the Big Four supermarket chains in the UK. These gains contributed to a 350% volume increase for RedLeg in its domestic market. The March placing has further bolstered the balance sheet and introduced the highly regarded Miton investment group to the shareholder list.
08 Jun 16
A quality vote of confidence
Distil has announced a share placing, which sees blue-chip fund manager, Miton, take a 10% stake in the company through its UK Microcap Trust fund. This represents a great vote of confidence in Distil and its future prospects, and was reflected in the fact that the placing was made at a premium to the pre-placing price. The proceeds will be used on brand marketing and balance sheet support as volumes grow. This will underpin the medium- and longer-term growth of, and therefore the value of, the group’s brands. Distil also expressed its confidence on Q4 trading and its view that full-year results will be in line with Board expectations.
15 May 16
Laying firm foundations
Distil has enjoyed strong Christmas trading over the important Q3 period to end December, with revenues increasing 71% year-on-year. This was driven by very good performances from the RedLeg spiced rum brand and the group’s Blackwoods gin range, which more than offset weaker sales of Blavod Black Vodka in Eastern Europe. Distil has expressed its confidence on Q4 trading prospects and that full year performance will be “in line with the Board’s expectations”.
28 Jan 16
DeliveRed Leg Up
The reporting of further loss reduction at the interim stage has been somewhat overshadowed by the more positive news of a listing for its RedLeg spiced rum at a second UK supermarket chain. Distil has delivered a substantial improvement in its interim performance, with a 55% reduction in its pre-tax loss to just £90K. This has been driven by strong top line growth (+89%), especially for its RedLeg brand, driven by distribution gains supported by increased advertising and promotion in what remains a competitive market. In turn, good cost control has seen a 16% reduction in administrative costs.
29 Oct 15
Delays in US approvals hinder progress
FY15 has seen Distil complete its strategic transition from a distributor of third party brands to a value-added developer of premium spirit brands, including its name change to Distil from Blavod previously. Distil has reported a welcome 26% reduction of its operating losses, held back by circumstances beyond its control. First, unexpected delays in acquiring the necessary US regulatory approvals have prevented the group from selling its core brands into that key and substantial market. And second, macro-economic conditions in Eastern Europe, and in Russia and Ukraine in particular, have resulted in a large volume decline in the sale of its black vodka brand, Blavod. These two factors have overshadowed strong progress elsewhere of its core brands, especially in the UK, where several important new listings have been gained.
15 Jun 15