REG - Distil PLC - Half-year Report
Thu 07:00
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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)
Loss per 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 (1) (1) (2)
trademarks
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
*does not include second tranche of fundraise (£377k, gross), received H2
Notes to the financial statements
1. Basis of preparation
This interim consolidated financial information for the six months ended 30
September 2025 has been prepared in accordance with AIM rule 18, 'Half yearly
reports and accounts'. This interim consolidated financial information is not
the group's statutory financial statements within the meaning of Section 434
of the Companies Act 2006 (and information as required by section 435 of the
Companies Act 2006) and should be read in conjunction with the annual
financial statements for the year ended 31 March 2025, which have been
prepared under UK-adopted International Accounting Standards (IFRS) and have
been delivered to the Register of Companies. The auditors have reported on
those accounts; their report was unqualified, did not include references to
any matters to which drew attention by way of emphasis of matter without
qualifying their report and did not contain any statements under Section 498
(2) or (3) of the Companies Act 2006.
The interim consolidated financial information for the six months ended 30
September 2025 is unaudited. In the opinion of the Directors, the interim
consolidated financial information presents fairly the financial position, and
results from operations and cash flows for the period. Comparative numbers for
the six months ended 30 September 2024 are also unaudited.
3. Availability
Copies of the interim report will be available from Distil's registered office
at 201 Temple Chambers, 3-7 Temple Avenue, EC4Y 0DT and also on
www.distil.uk.com (http://www.distil.uk.com)
4. Approval of interim report
This interim report was approved by the board on 22 October 2025.
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