Half-year Report
23/10/2025 07:00
RNS Number : 4759E
Distil PLC
23 October 2025
Distil plc ("Distil", the "Company" or the "Group")
Interim Results for the six months ended 30 September 2025
Distil plc (AIM:DIS), owner of premium drinks brands RedLeg Spiced Rum, Blackwoods Gin and Vodka, TRØVE Botanical Vodka and Blavod Black Vodka, announces its unaudited interim results for the six months ended 30 September 2025.
Operational highlights:
· Successful transition to Global Brands Ltd to service UK on-trade, with over 200 new distribution points secured across the portfolio
· New distribution partnership with AIKO Importers Inc to relaunch Blavod Black Vodka in the US market
· Ardgowan Open Day generated +63% revenues year-on-year for Blackwoods
o Full premises license being processed, with temporary licenses in place for the interim
o Final fit-out progressing, ready to open to visitors for tours, tastings and branded retail
· RedLeg Direct to Consumer ("DTC") (website) sales increased 191% year-on-year in response to increased marketing capabilities
· Successful £0.755m (gross) equity fundraise in September 2025 to fund working capital and brands development
o First tranche £378k (gross) received 18 September 2025, with balance received H2 following general meeting held 30 September 2025
Q2: June-September, year-on-year
· Revenue flat year on year £246k (2024: £245k)
· Gross Profit increased 18% to £123k (2024: £104k)
· Gross margin increased to 50% (2024: 42%)
· Investment in brand marketing increased by 6% to £135k (2024: £127k)
· Administrative costs decreased by 8% to £272k (2024: £297k)
· Within Administrative costs, Staff & related costs decreased by 15% to £138k (2024: £162k)
6 months to 30 September year on year:
· Revenue decreased 20% to £313k (2024: £393k)
· Gross Profit decreased 15% to £135k (2024: £158k)
· Gross margin increased to 43% (2024: 40%)
· Investment in brand marketing decreased10% to £216k (2024: £239k)
· Administrative costs decreased 6% to £506k (2024: £541k)
· Within Administrative costs, Staff & related costs decreased 12% to £265k (2024: £300k)
· Loss before tax reduced £45k to £(510)k (2024: (£555)k)
Chairman's Statement:
The first six months of the financial year has presented ongoing challenges to the business and to the wider spirits industry as we continue to battle macro-economic conditions imposed by continued rises in inflation.
Inflation figures for the 12 months to the end of June 2025 show spirits CPI inflation at 5%, ahead of the headline rate of CPI (3.6%). For the same period, spirits volume sales fell 5% in the UK off-trade and 7% in the on-trade as consumers continue to favour less expensive beer, cider and wines, which were impacted to a lesser degree in the February duty increases. These rises in inflation, the increase in duty from February, and higher national insurance contributions in April have compounded pressures on the sector as costs are increasing at a time when consumer spending remains cautious.
As previously reported, Q1 was particularly difficult for the business as we navigate a stock 'hangover' caused by a change in order phasing. Full UK distribution moved to Global Brands Ltd ("Global") in February 2025, triggering Global to build initial stock holdings in Q4 of the previous financial year, meaning that they had secured stock requirements for Q1 ahead of time.
In comparison, we're pleased to report that in Q2, revenues increased 269% on Q1 driven primarily by re-orders by Global as previous stock holding has been depleted. Revenues remained flat year-on-year, ahead of the overall spirits market trends.
Throughout the half year we have readjusted our plans and the key focus through to the end of the year will be on increased promotional support through the key Christmas period, as well as supporting rate of sale in existing and newly-won on-trade customers.
The market is showing early signs of improved consumer confidence with the full-year outlook more positive, but we remain cautious, brand activation at the point of sale and cash management will remain a focus area for the business.
Operations
The operational climate during the first half of the financial year presented ongoing challenges. While inflationary pressures continued to impact the wider spirits sector, we have remained focused on disciplined cost management, improving operational efficiency, and strengthening our supply chain resilience.
Following the full transition of UK distribution to Global Brands Ltd in February 2025, our operational focus has been on ensuring a smooth integration of logistics and stock management processes.
We continue to prioritise cost control across production, warehousing, and logistics. Freight and storage savings have been realised through the optimisation of inventory, including stock repurposing, reworks, and improved coordination between bottling and distribution sites.
Although the external cost environment remains inflationary particularly for glass, packaging, and logistics, we are maintaining vigilance and flexibility in our pricing and procurement strategies. Recent margin improvements, including a rise in gross margin to 50% in Q2 (up from 42%), demonstrate early success in offsetting cost pressures through operational discipline.
Looking ahead to the second half, the key priorities for operations remain cost efficiency and supporting increased demand over the Christmas trading period. With a strengthened working capital position following the September 2025 equity raise, Distil is well placed to execute its operational plans effectively while maintaining close control of cash and costs.
Marketing and New Product Development
Echoing the overall business goal to stabilise through market turbulence, marketing has been focussed on volume-driving activity at point of sale, primarily in-store media and promotional pricing in our major grocery customers.
Following the transition of UK on-trade business to Global Brands, we have seen an increased ability to activate in the on-trade and support new distribution points in driving awareness and rate of sale in these venues.
Stabilising and building our core brands remains the priority, and so larger scale new product development, such as new-to-world brands has been paused in order to leverage budgets for our core brands.
As consumer confidence starts to build again, we hope to return to stronger consumer-facing activity to further increase awareness and demand in both the on- and off-trade.
Ardgowan Distillery Project
Works continued apace at Ardgowan whisky distillery and culminated in the grand opening event which took place on 20 June 2025. The first whisky distillation marked an important milestone for the project, and the team has since been working hard to produce new-make liquid which will be aged in bespoke casks to be bottled under the Ardgowan brand.
In 2021 Distil invested £3m by way of a convertible loan note ("CLN") in Ardgowan to help fund the construction of the new whisky distillery located within the Ardgowan estate, 30 miles west of Glasgow on the banks of the River Clyde. Since a variation to the CLN Instrument in June, the loan currently earns Distil an annual coupon of 6.5% and, on conversion, would give Distil a 10.5% equity ownership of the overall facility.
Fit-out of the Blackwoods Brand Home experience is nearing completion. Once open to the public for tours, tastings, and branded retail, this asset will provide an important new revenue stream for the business, as well as giving us the opportunity to connect with trade customers and consumers to drive awareness and advocacy for the brand.
Outlook
After a slow start to the year, we are encouraged by results secured in Q2 against a challenging market backdrop. As we head into our busiest sales period at a consumer level, we've been working with our UK distributor to ensure that our promotional offering is compelling, and in addition are already putting plans in place to secure strong activity for 2026.
H2 will see the opening of the Blackwoods Brand Home and further local promotion for the brand, as well as the expected shipments of Blavod to the USA, which have been delayed due to TTB delays and subsequent US government shutdown. We continue to maintain an open dialogue with the US distributor to ensure that we mitigate delays as much as possible.
As we await the Autumn Budget in the UK at the end of November, we remain hopeful that no further hardships are imposed on the industry in terms of duty increases. We are beginning to see indicators that consumer confidence is slowly rebuilding and continue to work to ensure our brands are available and well positioned to attract consumers once this confidence returns.
Enquiries:
For further information please contact:
Distil PLC
Don Goulding, Executive Chairman
Tel: +44 203 405 0475
SPARK Advisory Partners Limited (NOMAD)
Neil Baldwin
Mark Brady
Tel: +44 203 368 3554
Allenby Capital Ltd
(Broker)
James Reeve/Piers Shimwell. Jos Pinnington
Tel: +44 203 283 4006
Tel: +44 203 368 3550
Tel: +44 203 328 5656
| Distil plc - Half Year Results | |||
| Consolidated comprehensive interim income statement | |||
| Six months ended 30 September 2025 | Six months ended 30 September 2024 | Year ended 31 March 2025 | |
| Un-audited | Un-audited | Audited | |
| £'000 | £'000 | £'000 | |
| Revenue | 313 | 393 | 1,043 |
| Cost of sales | (178) | (235) | (649) |
| Gross profit | 135 | 158 | 394 |
| Administrative expenses: | |||
| Advertising and promotional costs | (216) | (239) | (444) |
| Other administrative expenses | (506) | (541) | (1,093) |
| Impairment losses | - | - | (89) |
| Total administrative expenses | (722) | (780) | (1,626) |
| Operating loss | (587) | (622) | (1,232) |
| Finance income | 87 | 77 | 152 |
| Finance expense | (10) | (10) | (21) |
| Loss before tax from continuing operations | (510) | (555) | (1,101) |
| Income tax | - | - | (163) |
| Loss for the period | (510) | (555) | (1,264) |
| Lossper share: | |||
| From continuing operations | |||
| Basic (pence per share) | (0.06) | (0.08) | (0.10) |
| Diluted (pence per share) | (0.06) | (0.08) | (0.10) |
| Consolidated interim statement of financial position | |||
| As at 30 September 2025 | As at 30 September 2024 | As at 31 March 2025 | |
| Un-audited | Un-audited | Audited | |
| £'000 | £'000 | £'000 | |
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 233 | 184 | 205 |
| Right of use assets | 292 | 305 | 299 |
| Intangible fixed assets | 1,433 | 1,454 | 1,432 |
| Financial assets | 3,000 | 3,000 | 3,000 |
| Deferred tax assets | - | 126 | - |
| Total non-current assets | 4,958 | 5,069 | 4,936 |
| Current assets | |||
| Inventories | 924 | 1,252 | 1,039 |
| Trade and other receivables | 308 | 233 | 412 |
| Cash and cash equivalents | 262 | 314 | 338 |
| Total current assets | 1,494 | 1,799 | 1,789 |
| Total assets | 6,452 | 6,868 | 6,725 |
| LIABILITIES | |||
| Current liabilities | |||
| Trade and other payables | 400 | 491 | 546 |
| Financial liabilities | 195 | 150 | 150 |
| Lease liabilities | 7 | 7 | 7 |
| Deferred tax liability | 38 | - | 38 |
| Total current liabilities | 639 | 648 | 741 |
| Non-current liabilities | |||
| Lease liabilities | 311 | 308 | 305 |
| Total liabilities | 951 | 956 | 1,046 |
| Net assets | 5,501 | 5,912 | 5,679 |
| EQUITY | |||
| Equity attributable to equity holders of the parent | |||
| Share capital | 2,533 | 1,785 | 2,237 |
| Share premium | 6,775 | 6,715 | 6,739 |
| Share based payment reserve | 218 | 218 | 218 |
| Accumulated losses | (4,025) | (2,806) | (3,515) |
| Total equity | 5,501 | 5,912 | 5,679 |
| Consolidated interim cash flow statement | |||||
| Six months ended 30 September 2025 | Six months ended 30 September 2024 | Year ended 31 March 2025 | |||
| Un-audited | Un-audited | Audited | |||
| Cashflows from operating activities | £'000 | £'000 | £'000 | ||
| Loss before tax | (510) | (555) | (1,101) | ||
| Adjustments for non-cash/non-operating items: | |||||
| Finance income | (87) | (77) | (152) | ||
| Finance expense | 10 | 10 | 21 | ||
| Depreciation | 7 | 7 | 13 | ||
| Amortisation | 7 | 6 | 12 | ||
| Impairment of inventory | - | - | 65 | ||
| Impairment of intangible assets | - | - | 24 | ||
| Unrealised foreign currency losses | - | 2 | - | ||
| (573) | (607) | (1,118) | |||
| Movements in working capital | |||||
| Decrease/(increase) in inventories | 115 | (47) | 102 | ||
| (Increase)/decrease in trade receivables | (342) | 304 | 167 | ||
| Increase/(decrease) in trade payables | 1 | 18 | (168) | ||
| Cash (used in)/generated by operations | (226) | 275 | (101) | ||
| Net cash used in operations | (799) | (332) | (1,017) | ||
| Cashflows from investing activities | |||||
| Purchase of property plant & equipment | (35) | (49) | (76) | ||
| Expenditure relating to the acquisition and registration of licenses and trademarks | (1) | (1) | (2) | ||
| Proceeds from change in convertible loan note terms | 45 | - | - | ||
| Other interest received | - | - | 2 | ||
| Net cash used in investing activities | 9 | (50) | (76) | ||
| Cashflows from financing activities | |||||
| Proceeds from issue of shares, net of issue costs | 332 | 101 | 577 | ||
| Interest received on convertible loans | 87 | 75 | 150 | ||
| Proceeds from invoice financing | 299 | - | 198 | ||
| Interest paid on invoice financing | - | - | (3) | ||
| Payment of lease liabilities | (4) | (6) | (17) | ||
| Net cash generated by financing activities | 714 | 170 | 905 | ||
| Net decrease in cash and cash equivalents | (76) | (212) | (188) | ||
| Cash & cash equivalents at the beginning of the period | 338 | 526 | 526 | ||
| Cash & cash equivalents at the end of the period | 262* | 314 | 338 | ||