Distil Share Discussion Threads

[haggismchaggis] 25/10/2018 07:08

How can the market continue to ignore the amazing continuous growth of this company?? This has been the case since Don took the reigns and now we are showing a £101k INTERIM profit! Fund Managers need to get their finger out.https://www.investegate.co.uk/distil-plc--dis-/rns/interim-results/201810250700031029F/

[haggismchaggis] 23/10/2018 21:43

Results RNS tomorrow? That would be the same date as last year.

[acdc52] 23/10/2018 04:33

IMO considering Distil is expanding(EU and BRICs countries with over 1.5 billion people), the future potential revenue growth is astronomical.

[jameshughes1980] 22/10/2018 16:15

Hi Acdc, helpful insight.
In the spirit (pardon pun) of starting somewhere I have also had a go at brand value back of envelope style (acknowledge simplistic and much more complex in practice).
Anyhow, Casamigos tequila sold for initial consideration of $700m plus $300m linked to future growth not too long ago. 2016 Casamigo case sales = 120k. I see (from hxxps://vivaescritora.com/tag/bottles-per-case/amazon) a case is 6 bottles giving 720k bottles. A bottle sells for £45 on Amazon so £33m annual sales or $42m. This gives a range of brand value of 17 to 24 times sales. Albeit assumptive and growth of redleg different to casamgos offers a starter for 10.
Taking 75% of the ratio and allocating redleg £1m of sales would give a brand value of £13m to £18m. £2m of sales and £26m to £36m. A lot higher than current market cap though recognise likely toppy. Highlights potential though. Welcome thoughts…

[berny3] 21/10/2018 09:19

acdc and Pete good discussion point. I quote from IAS 38

Internally generated goodwill is within the scope of IAS 38 but is not recognised as an asset because it is not an identifiable resource.

We need to keep an eye on this in the accounting notes. As can the internally generated goodwill for Redleg be separated from Blackwoods or Blavod. Blavod easier than Blackwoods as it is licensed.

Once we define the value then it becomes interesting how we recognise the expenditure.

"Research expenditure is recognised as an expense. Development expenditure that meets specified criteria is recognised as the cost of an intangible asset."

"Intangible assets are measured initially at cost. After initial recognition, an entity usually measures an intangible asset at cost less accumulated amortisation. It may choose to measure the asset at fair value in rare cases when fair value can be determined by reference to an active market."

This also has implications on tax at sale. Is it capital or income. I do not believe the allocation of. value to the brands in the balance sheet merits value unless we were borrowing against that value. Attributing a value would also incur expense for no real benefit. in my opinion.

as note £10mln was given in a speech by DG some years ago. My thoughts looking at expected case sales is that we could be getting close to 75K cases. £2.7mln revenue FY. That may be optimistic this year but even hitting 50K case sales should see a circa £25mln market cap. In my opinion.

Results this half year pivot on the the marketing spend versus revenue generation. surprise on either the upside or down side will make the price very volatile.

[acdc52] 20/10/2018 17:33

Recognition criteria. IAS 38 requires an entity to recognise an intangible asset, whether purchased or self-created (at cost) if, and only if: [IAS 38.21]

it is probable that the future economic benefits that are attributable to the asset will flow to the entity; and the cost of the asset can be measured reliably.

IMO, Distil should incorporate all brands' current valuation into balance sheet.

[petersinthemarket] 20/10/2018 12:15

Can someone help me with the following thoughts. I believe it has been publicly stated that one of the Distil brands (redleg) could be worth in the region of £10m if sold off to one of the majors today. If that is corrrect it is an asset of major importance to the company and to shareholders so should it be mentioned somewhere in the accounts? I have re-read the last finals and can see no mention of the possible sale value of a brand even though it is very well known that such a sale is a major part of overall company strategy. I might have expected to see something perhaps in Intangibles or at least in the notes or commentary. With Rev standing at around £2m and mkt cap at around £11m, an asset with a potential value of £10m is no small issue. Are there any accounting rules on the handling of this sort of thing? pete

[berny3] 19/10/2018 14:23

volume showing now

[dante17] 19/10/2018 13:20

Including an almost 700k purchase at 2.29

[berny3] 19/10/2018 12:48

to note no volume showing on my advfn but there is volume traded 923,134 shares today

[petersinthemarket] 19/10/2018 09:39

Most likely next week. Should be interesting.

[berny3] 19/10/2018 08:52

2.1 - 2.4 (4*4)

Every market maker has moved to 2.1 - 2.4 on no volume???

I wonder whether we will get 6mnth update today.

WINS just dropped 2.0 - 2.3

[berny3] 17/10/2018 14:15

It all pivots on marketing spend. The IN (investment note) reported increased marketing spend to result in flat profits this year on from last. I have been monitoring sales of RLR in my local establishments and seeing several bottles a week. Growth looks to be positive and at least consistent with last years.

US I am not certain this market is an easy win and maybe Asia as touched on in the IN is an easier market in the short term. Outside of the IN UK and Europe seem to a focus with listing of RLR in French supermarkets.

I think the price pullback from last years results was due to the IN and its prediction of flat profits due to increased marketing spend. That is the main question for me.

[mortimer7] 17/10/2018 11:45

For the last 3 years the 6 month interim results have been issued in October on
29th, 28th & last year 24th. So hopefully fairly soon now.

[jameshughes1980] 17/10/2018 11:35

Struggling to see what’s not to like here. 4 years consecutive revenue and profit improvement. Operational gearing so continued sales growth will flow to bottom line, unless of course re-invested in marketing for brand building purposes. LY marketing budget increased £100k to £0.5m and Dis still turned a c £160k profit so Distil building progressively larger investment pots. TY additional listings, Blackwoods Vintage rollout Q4 LY leaves Q1 to Q3 benefit TY. Add to that buoyant rum market with Kantar quoting 8% growth yr on yr and set to achieve £1bn in sales. Distil team executing well and seem to be focusing on lowest hanging fruit? LY report quotes US and resourcing for Asia growth with initial shipments to Europe. Agree US feels slower arriving than anticipated though suspect building business and balance sheet in advance potentially. Graham Neary and Vilage_idoit are referencing long positions so in good company. Don Goulding also owns 8% of the stock so not one of those companies where doubt as to genuine alignment of exec. Valuation wise noted £10m quoted some time ago for red leg brand by DG. 2016 I think. Grown some since though not well placed to assess credibility of the statement (although successful fledgling brands do seem to attract large prices from bigger players) so interested in views. Similarly around bear case anyone? Perhaps a pleasant next update when arrives...

[a_2_b] 15/10/2018 07:09

I guess that's why they're concentrating on the UK mainly atm. I've brought a bottle with me to Canada and people say it's a nice drink can't believe how mellow and flavorful it is to other rums out there.

[dante17] 15/10/2018 06:55

Just a few more and RedLeg will have 200 reviews on Amazon, the vast majority 5-star. Given that many rums that have been around for many more years than RedLeg have less than 100 reviews, it's a sure sign that our brand is generating excitement across the country.We might get an announcement re the H1 performance by the end of this week. I'm looking for our maiden H1 profit since the company changed its strategy. Looks like the US deal is being held back due to the growing uncertainty of Brexit.

[acdc52] 14/10/2018 10:01

Distil is growing slowly but surely, ideal for risk averse small caps long term investors looking for growth. It will be trading in double digits in due course.

[janekane] 13/10/2018 07:47

Advfn have got the wrong buy prices on this stock if this is continued on Monday I and many others here will be very rich

[janekane] 12/10/2018 21:03

Good
Scotty your right

[iceman82] 12/10/2018 16:11

we should have trading update this month .... we should see healthy numbers

[scotty1] 12/10/2018 11:00

jane you are jesting aren't you? most stocks been hit do a bit of research as to why,but the good ones bounce back as the dips are bought as in DIS.

[janekane] 12/10/2018 10:47

Why this down then

[haggismchaggis] 11/10/2018 14:46

You can't keep a good stock down.

[mrdollarbill] 11/10/2018 08:37

SUB 2p in sights ! :)