REG - Distil PLC - Op'l update; launch of shareholder benefits prog

DistilAnnouncement

24/07/2025 07:00

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RNS Number : 3260S  Distil PLC  24 July 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Operational update and launch of shareholder benefits programme

 

Ardgowan Distillery ("Ardgowan") update:

·      Malt whisky production has commenced, with scope to produce 1m
ltrs per year

·      Seeking a £5m RCF (rolling credit facility) with Virgin Money as
working capital to fund whisky production, and a further £5m stock lending
facility

·      Approximately 4x increase in private cask sales so far this year
vs sales in full year 2024

·      Special terms on cask sales agreed for Distil shareholders

 

Distil update:

·      Q1 (April-June) revenues decreased 50% to £66.8k (April-June
2024 £134k)

o  Due to adjusted phasing of orders in response to the change in UK
distribution to Global Brands, who built stock holding in Q4 following
contract signing in February 2025

·      First half calendar year revenues (unaudited) +9.3% to £497.4k
(Jan-June 2024: £455k)

·      Off-trade (supermarkets, alcohol retailers and online) sector
benefitting from the warmer 'bbq' weather helping to drive sales in
supermarkets (+13%) and through the RedLeg website (+32%, redlegrum.com)

·      Successful open day for Blackwoods Brand Home, delivering
revenues +63% vs previous year open day (September 2024)

·      On-trade (Bars, pubs, hotels and restaurants) remains under
pressure from on-going industry headwinds of rising costs and reduced customer
disposable income

·      Exclusive shareholder discount announced for use across Distil
brands

·      Unaudited full-year revenues to 31 March 2025 £1.043m (£1.5m to
31 March 2024)

o  Audited full-year accounts expected to be published August 2025

 

Ardgowan Distillery update

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.

 

Momentum is gathering pace at Ardgowan following the official opening on 20
June 2025. The first sherry oak casks are now being filled with whisky
distilled on site where they will be stored and allowed to mature before being
bottled and made available for sale.  To fund the whisky stocks, Ardgowan has
sought up to £10m of debt finance from Clydesdale Bank, now part of Virgin
Money. Near term revenue is being generated by sales of Ardgowan's
award-winning "Clydebuilt" brand, which offers a range of single malt and
blended malt bottlings. The first Clydebuilt Single Malt release will be
available via specialist retailers in the UK, Austria, Belgium, Sweden and
Germany.

 

 

 

 

 

 

 

 

 

 

 

 

Additionally, Ardgowan is selling private casks. Each private cask is filled
with 250 litres of Ardgowan new make spirit, fully insured and laid down to
mature in the warehouse at the distillery. The sales price of each cask, as
listed on the Ardgowan website, is £8,000. Ardgowan has seen a 4x increase in
private cask sales in 2025 vs full year 2024. More information about the
product can be found at ardgowandistillery.com.

 

As part of Distil's ongoing investment in Ardgowan, we have agreed special
terms for Distil shareholders allowing the purchase of a cask at a reduced
rate. This offer is open to shareholders owning a minimum of 500,000 Distil
shares. Shareholders interested in participating should contact the Distil
team via distil.uk.com.

 

Distil Business Update

 

While Q1 revenues show a decrease year-on-year, this is due to a change in
order phasing in response to Global Brands taking over full UK distribution
and building stock holding in Q4.

 

To give a view of performance mitigating the effect of this phasing, we look
to the first half of the calendar year (January - June 2025) where, across the
core Distil business, revenues increased 9.3% year-on-year to £497k.

 

The UK grocery channel has been benefiting from the good weather throughout Q1
of the current financial year (April-June 2025), with sales volumes increasing
13% at consumer level. We have strong promotional activity secured across the
remainder of the summer, including in-store point-of-sale media to drive
further awareness and trial in this channel.

 

Direct-to-consumer revenues via the RedLeg website saw uplifts of 32% in Q1 of
the current financial year vs the previous period. The Blackwoods Brand Home
generated a 62.8% increase in revenues vs the previous open day in September
2024, demonstrating encouraging demand for the full experience which will open
in Q3, driving awareness of the brand and generating a new revenue stream for
the business.

 

In addition, the relationship with Global Brands, who has taken over full UK
distribution, continues to progress positively, with 86 new distribution
points secured to the end of June. We continue to work closely with their
teams to build distribution across all channels.

 

Distil is pleased to announce a new ongoing 10% discount for shareholders
across both RedLeg (redlegrum.com) and Blackwoods (blackwoodsgin.co.uk) online
stores(1). Shareholders can register on the

Distil website for a discount code (distil.uk.com/shareholder-discount). This
offer is open to all Distil shareholders.

 

 

 

 

 

     Above: Blackwoods and RedLeg range included in shareholder product discount opportunity

 

 

 

 1  The 10% shareholder discount is available on all orders compared to the
existing 10% discount available on first purchase only.

 

In April, we announced a new distribution agreement to relaunch Blavod in the
US market. This has been delayed due to US government approvals, however we
expect shipments to commence in FY Q2 to capitalise on the US holiday season
in FY Q3. This represents a significant new market for the business; vodka
represents the biggest spirit category in the U.S. by volume, one of the
biggest spirits markets globally based on 2024 figures from IWSR Drinks Market
Analysis.

 

In addition to careful management of costs, the strategic review of the
business, announced in shareholder communications on 13 March 2025, continues
as the Board examines strategic options to determine how best to support the
Company in delivering long-term shareholder value. In addition to considering
near-term funding options and reducing headcount, we continue to evaluate the
potential sale of unused intellectual property and exit options for non-core
brands.

 

Don Goulding, Executive Chairman, Distil, commented "It's fantastic to see the
efforts by the team across many years work at Ardgowan come to fruition with
the first casks now being filled and laid-down for ageing, and we're
encouraged to see that consumers share that enthusiasm for the project through
both the Ardgowan private cask sales and the revenues generated by Blackwoods
at the Open Day.

We're delighted to be able to extend an exclusive offer to shareholders to
participate in the cask investment as part of our on-going relationship with
Ardgowan, and encourage those interested to get in touch.

 

First half calendar year results are encouraging, and the outlook to the end
of the calendar year is positive, with both initial orders of Blavod for the
US and the opening of the Blackwoods Brand Home expected.

 

We are closely monitoring company performance and the strategic review
continues to evaluate how best to ensure shareholder value is generated
long-term."

 

 

 Enquiries:

For further information, please contact:

 

 Distil PLC
 Don Goulding, Executive Chairman  Tel: +44 203 283 4006

 SPARK Advisory Partners Limited

 (NOMAD)
 Neil Baldwin                      Tel: +44 203 368 3550

 Mark Brady
 Allenby Capital Ltd

 (Broker)
 James Reeve/Piers Shimwell        Tel: +44 (0)20 3328 5656

 Jos Pinnington/Guy McDougall

 

 

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