Distil Share Discussion Threads

[thepopeofchillitown] 07/6/2017 09:10

Boffster - statement mentions 'maiden profit in own brands.' I am unashamedly a Johnny come latey so don't know if this relevant.

[stampylong trader] 07/6/2017 09:08

I've spent over a decade looking for companies that are on AIM that look to make a maiden profit - there aren't many, you can be sure of that. You have to have some exposure to this kind of stock, and get in at the ground level.

[onedayrodders] 07/6/2017 09:02

Hilarious AIM investors exiting on the bell ... what were they expecting ..£100m profit.

Reads very well to me and strategy working well.

All these sellers will regret accepting these bids in a week or two.

IMHO

ODR

[someuwin] 07/6/2017 09:00

Everything here going exactly to plan.

They are now profitable (and that's without the recent rollouts in Weatherspoons and ASDA). So no more cash needs to be raised.

The brands are already worth much more than the valuation here. And will get more and more valuable as they become better known.

More brand awareness = more sales. More sales = more brand awareness.

USA and other territories to come.

Plus the inevitable buyout of part or the whole of the company which could come at any time.

[texas_caddy] 07/6/2017 08:49

From where I'm sitting I don't see anything changing in that statement. In for the long term and not concerned with anything in the statement, happy to move to profit and on from there. Price drop may be irritating but I wasn't planning to sell anyway, so see a good chance to add a few more in the meantime.

[thepopeofchillitown] 07/6/2017 08:48

The results are absolutely fine. It's the outlook that's the problem. A bit wishy-washy.

[multibagger] 07/6/2017 08:40

Hi Haggis,

I am pretty chilled with my investment...like you I have taken a lot of positives from the RNS and "reading between the lines". The potential for sustained and substantial growth is there across a range of markets - a few years investment horizon is required.

Once the election is decided then markets will move with a greater sense of direction (one way or the other, depending on the results). In the run up, short termers taking profits or cutting losses - par for the course.

Good luck all :)

[haggismchaggis] 07/6/2017 08:28

Multibagger, as with all RNS it's best to read between the lines and look for hints from the BOD. In our case we are told:

"We are therefore reviewing our distribution arrangements to ensure we have the appropriate reach and in-market support prior to launching the brand in that territory. More news will follow once negotiations have concluded."

So we are already in negotiations for the USA distributtion deal, which to me says the deal won't take much longer to sign off. It's not a hugely complex agreement, I expect a standard distributors agreement with simple modifications to suit our agreed trade pricing and retail prices, so not much in the way of writing the agreement, only negotiating the pricing. That shouldn't take long. Agreement within 6 weeks IMO.

[villarich] 07/6/2017 08:28

Falling by 14% is normal following results that were largely expected?

[baticle] 07/6/2017 08:23

The share price falling on results is fairly standard these days as there are many short term traders given the financial products and tools available such as CFD's etc..
Opportunity to buy for long termers.

[boffster] 07/6/2017 08:21

Short term traders or the penny dropping that Distil is trading on 10 times revenue and 1,700 times earnings, whilst growth is slowing down?

[11_percent] 07/6/2017 08:19

Huge spread.

[multibagger] 07/6/2017 08:15

Good call Haggismchaggis....traders selling out this morning it appears.

US distribution announcement is likely to come before mid Aug - September 2017 period at the latest. We won't want to miss Christmas and New Year trading there, as the US is the biggest market for alcohol (from memory). £910k cash available to drive the marketing and promotional efforts...not that we will blow it all.

[haggismchaggis] 07/6/2017 08:11

Villarich, that's only short term traders selling on news, it happens on all results RNS. Wait a week or two and the share price is likely to be higher, driven by long term investors and institutional investors loading up ahead of USA sales and Q1 results.

[haggismchaggis] 07/6/2017 08:08

Great results. I predicted a small profit so I'm glad they obliged.

I posted before about the potential USA distributor, suggesting they could go for the biggest USA distributior, and the results comments back up that theory. Have we been also holding back on USA to ensure we showed a maiden profit, before going all out with the USA launch?

[boffster] 07/6/2017 08:06

Yet again the cold, hard figures fail to live up to the hype.

This is not a 'maiden' profit. Some years ago DIS made about £50k one year before slipping back into loss, although I can't really expect many of you Johnny come latelys to know that

[villarich] 07/6/2017 08:04

Down 5% great. What were the markets expecting?

[bprofit] 07/6/2017 07:51

I have a felling the US deal in the pipeline could be a game changer. I wonder how long we will have to wait for more news...

[chinese investor] 07/6/2017 07:49

No Shocks !

[multibagger] 07/6/2017 07:40

On re-reading the RNS - there appears to be a strong undercurrent of optimism and prospects, given Don usually comes across as pretty measured/sedate in his presentations.I get the sense that even DG has got quite possibly excited and had to hold himself back with regards to potential "forward looking statements"(or the NOMAD would have told him off)

There also seems to be a palpable sense of relief that a maiden profit has been declared and that the Directors can now get on with the actual work of building the brand and profits from this solid base. I am pretty pleased really !

Let's see the morning/day brings from a trading perspective, but I can be pretty sure as to what the evening will bring - a nice long G&T, Blackwoods, of course.

Good luck all :)

[gymratt] 07/6/2017 07:27

"...exploring new products.." Interesting ;@)

[multibagger] 07/6/2017 07:22

Edited:

Good set of results and accurately estimated by Berny3...solid foundations for growth being laid.

"....We anticipate sustained growth of premium spirits and will therefore build on our proven marketing strategies to advance our brands. In addition, we are also exploring new products to build on the success of our existing brands..."

Sounds like US distribution arrangements will be completed before Sep 2017 to allow for Christmas period trading over there.

Onwards and upwards...could the market get interested and move the share price today ? I expect it to be pretty flat, but I am happy to be proven wrong by a wide margin :)

Good luck all !

[baticle] 07/6/2017 07:19

A Profit is a profit, and given the company has had the pressure of breaking into profit took off it, they can concentrate on growing the brands.
This is a very good result although marginally lower than the 1.8M rev and £30k I had estimated, but with hind-sight...... The New Contracted Wetherspoons Sales and Easter Trading fall into the New Years accounts, so onwards and upwards for next year !

[hydrus] 07/6/2017 07:18

So with 40% turnover growth they've only managed to increase profit by about 110k from last year to 10k. So what for next year? Increase profits by another 110k to say 120k. That would put this on a forward PE ratio of about 180.