PROGRESSIVE: Distil - Q4 revenue performance best of the year, though slightly shy of market expectations

Distil’s FY23E trading performance has been disappointing, with full-year revenue more than halving, resulting in a higher loss before tax. The disappointing optics primarily reflect the change in business model, moving from a distributor-based model to Distil assuming direct control of supplying its major UK customers. This strategic shift required a one-off but prolonged clearing of stocks from the previous distributor’s supply chain. With this complete, Distil can focus on driving domestic an

PROGRESSIVE: Distil: One-off factors adversely impact Q3 trading

A number of primarily one-off factors has resulted in a 48% decrease in revenue to £411k in Distil’s peak Q3 trading period (to end December). The principal reasons behind this were: the continuing effects of the one-off reduction in UK market stock cover arising from the change in business model and removal of the UK distributor; a softer-than-expected UK spirits market; and systems issues within a major customer, resulting in sub-optimal replenishment. Distil has indicated that FY23 revenue wi

Hybridan Small Cap Feast - 12 Jan 23

12 January 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment object

Hybridan Small Cap Feast 13/10/22

What’s cooking in the IPO kitchen?** World Chess plc, a leading chess organisation, intends to join the Main Market. World Chess Plc is the holding company of a group which aims to promote the mass market appeal of chess globally through the commercial offering of chess related activities. Euro 8m to be raised. Expected November 2022. OTAQ plc, (OTAQ.L) the technology company with three divisions: Aquaculture, Geotracking Devices and Offshore intends to delist from the Main Market and join the A

PROGRESSIVE: Distil: Interim results reflect business model shift

Distil’s interim results to 30 September 2022 reflect the financial consequences of the strategic change to its business model, with the group assuming direct control of servicing its major UK customers and employing a third-party distributor for the rest of its business (primarily hospitality, wholesale and export). The reversal to a £602k adjusted operating loss should be seen in this light. To that point, we are making no changes to the reinitiated forecasts published after the Q1 trading upd

Distil: Q1 reflects re-modelling for a stronger future

Distil’s Q1 trading update reflects the recently announced changes to the company’s business model, with the group assuming direct control of servicing its major UK customers, and employing a third-party distributor for the rest, from October onwards. In the interim, Distil and the outgoing UK distributor, Hi-Spirits, are running down their inventory of Distil brands. The company anticipates a one-off £580K adverse sales impact affecting H1 of the current year, with future years benefiting from

Hybridan Small Cap Feast 06/07/2022

Dish of the day Joiners: LifeSafe Holdings (LIFS.L) joins AIM. The fire safety technology business with innovative fire safety products, has developed what the Directors believe to be market disrupting, eco-friendly fire safety protection products to both protect (via fire extinguishers) and detect (via carbon monoxide, smoke and heat alarms) fires. The Company raised £3m on Admission. Market Cap approximately £16.6m. Leavers: No leavers today. What’s cooking in the IPO kitchen? Immediate acquis

Distil: FY22 results reflect challenging comparatives

Distil’s FY22 results reflect the exceptional performance delivered in FY21, when sales rose 48% following the distortions caused by the unprecedented response to Covid, lockdowns and retailer fears of supply chain disruption. FY22 has consequently seen declines in both turnover and profitability.

A strong Q4 performance delivered

Distil delivered a strong final quarter (Q4) for the FY22E financial year to end March 2022, as anticipated in its Q3 trading update. Revenues increased by 32% over last year, with volumes up 38%. Pleasingly, revenues continue to track ahead of the pre-Covid levels of FY20, as they have cumulatively across the year. Strong domestic and export growth in Q4 has been accompanied by higher levels of marketing and new product development (NPD) investment. Subject to markets remaining open, and suppor

Hybridan Small Cap Feast 19/01/22

Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Spinnaker Acquisitions plc, intends to join the Main Market (Standard). The Company have conditionally agreed to acquire the entire issued share capital of HomeServe Labs Ltd, a wholly owned subsidiary of FTSE250 quoted public company HomeServe Plc, by way of a reverse takeover conditional, inter alia on relisting and successful completion of fundraising activities to be undertaken by way of a placing and di

Trading update reflects ongoing Covid distortions

Distil’s trading update continues to reflect the impact of distortions from Covid-related lockdowns and consumer stockpiling. The company has also moved from a predominantly promotional discounting stance in the UK to one of more premium price positioning. This marketing shift includes retail selling price increases, which both reinforce the premium positioning and mitigate the cost pressures accruing in an inflationary environment. These increases may impact short-term performance but should un

Hybridan Small Cap Feast 28/10/2021

Joiners No joiners today. Leavers Morrisons has left the Main Market following a takeover by a US private equity group. What’s cooking in the IPO kitchen? Katoro Gold plc (AIM: KAT), the AIM listed gold and nickel exploration and development company, announced that the Company and Target Mine Consulting (Pty) Ltd have agreed to seek admission for 100% of the Blyvoor Joint Venture project (BV) by vending each of their separate interests into a new company to be listed on the Standard List of the

Interim results

Distil faced very tough sales comparatives in H1 against the exceptional prior year performance (+128%), driven by the extraordinary circumstances arising from the pandemic. While reflected in the current year performance, Distil delivered strong underlying growth on a two-year view against its preCovid sales base (+74%). Turnover declined by 24% in H1 to £1.44m, with gross margin up 40bps to 55.3%. Adjusting for share-based payments and one-off costs related to the Ardgowan investment, Distil d

An encouraging start….

Distil has delivered a positive start to the FY22E year with both revenues and volumes posting good growth in its Q1 period to the end of June. The initial lifting of some restrictions in the on-trade (hospitality) sector, the easing of global travel restrictions and the enthusiastic reception of new product launches have all contributed to this positive Q1 performance. Management is confident that it can continue to build on this momentum over the summer period and beyond.

Anpario+ (ANP) - House Stock (from Buy), 208p - Appointment as NOMAD & Broker leads to withdrawal of recommendation.

Shares trading >20% below adj. NAV; positive category data

Chapel Down share price in recent weeks has retreated to a 22% discount to our adj. NAV of 38p. This is overdone and offers an attractive entry point on deep value and structural growth considerations. Recent Nielsen off-trade data for English sparkling wine remains highly positive, with April numbers in particular stellar (boosted by the King’s coronation). The growing season is anticipated to have got off to a good start as has the brand relaunch over Q2. While we make no forecast changes, our

Anpario+ (ANP, House Stock, 194p) - Tender offer; returning up to

Growth Companies - Share & share alike Sell in May?

Cranswick+ (CWK, House Stock, 3140p) - Larger, more diverse & better equipped

Greencore Group (GNC) - House Stock at 76p - H1 FY23A - Forecasts retained

LIBERUM: Genus* - Sticky Chinese Pork

Hybridan Small Cap Feast - 27 Apr 23

27th April 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment object

Vimto brand strength reinforced in 2022

We are impressed with todays YE update, further reinforcing the resilience of the Vimto brand against a difficult consumer and cost backdrop. Revenue grew 14%, with International a key stand out and PBT in line with market expectations (+16% y/y). The OoH strategic review is near complete and will be unveiled at the March finals. We anticipate a robust plan to lift profitability from FY24. There is also good news around succession planning with a new Chair appointed. Outlook commentary for FY23

Sparkling growth

Chapel Down is a market leader, which is asset backed and offers multiple years of high growth. This is evidenced by FY22 finals with adj. PBT +22% to £1.7m. A generational shift to the growing popularity of English sparkling wine and premiumisation trends make for an attractive investment case. We forecast PBT to more than double by FY26 from the current asset base. Thereafter, our illustrative analysis shows deployment of new capital towards attaining 5% of the addressable market by FY32 (vs 2

SHORE CAPITAL - Share & share alike

Initial Equity Trading Comments - 16 May 2023