Distil PLC - London-based premium drinks brands such as RedLeg Spiced Rum - Says pretax loss in the six months ended September 30 widens to £555,000 from just £45,000 a year before, as revenue falls 68% to £460,000 from £1.4 million. Says it moved towards direct sales of its products, instead of through a distributor during the half. ‘UK sales are adversely impacted by the removal of inventory from the distributor supply chain as it transitioned away from its UK distributor and to direct sales during Q2’, Distil says Gross profit decreases by 74% to £210,000 from £794,000, and administrative expenses are up 29% to £436,000 from £338,000 the year earlier.
Chair Don Goulding says: ‘The key change year-on-year is our decision to take direct control of relationships with our major UK retail customers, and to move away from our previous distributor, Hi-Spirits, managing our entire UK trade.’ Hi-Spirits is a wholesaler based in Hampton Wick in England.
Distil expects continued cost pressure in the short to medium-term and will maintain its efforts to mitigate price inflation. Says the spirits market continues to perform well in the UK.
Current stock price: 0.82 pence, down 22% on Thursday afternoon in London
12-month change: down 60%
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