This week I am going to for this announcement:
http://www.investegate.co.uk/distil-plc--dis-/rns/blackwoods-us-approval---distributor-agreement/201501210700156808C/
from beverage firm Distil (LON:DIS).
This announcement details US approval and a distributor agreement for Distil's flagship brand, Blackwoods gin.
Distil (LON:DIS) is the renamed Blavod. The company owns a collection of spirits brands. The business model has changed in recent times as the company has come under new management.
This makes past comparisons tricky.
Half-year results:
http://www.investegate.co.uk/distil-plc--dis-/rns/half-yearly-report/201412160700187930Z/
Turnover falls as the Group moves from 3rd party brand distribution in the UK and transfers owned brands to a distributor. This is reflected in the associated reduction in staff costs...
Gross profit from owned brands increased by 8%
Revenue for six months was £280k.
Loss for six months: £200k
That's pretty grim. However, the US approval is a significant stage in Distil's development. The most recent balance sheet showed current assets around twice those of current liabilities.
Distil is moving in the right direction. It's hard to gauge the likely long-term profitability of the business but with an experienced drinks brands man like Don Goulding at the helm and a market cap of just £3.4m, the shares feel like an option on his own capability.
The company has previously blamed the lack of US approvals for its failure to reach cashflow break-even:
http://www.investegate.co.uk/distil-plc--dis-/rns/trading-update/201409150700136104R/
the sharp rise that accompanied Wednesday's announcement suggests that many investors believe that the key to sustained profitability is US approvals. After rising as high as 1.2p, the shares ended the week at 0.95p.
David O'Hara
Editor, AIM Prospector
