Distil Share Discussion Threads

[alcoholtradebuyer] 07/11/2016 08:48

Fevertree materially ahead of current market expectations. Makes distil look even more atttactive. Watch distil do the same.

[alcoholtradebuyer] 06/11/2016 19:57

Worked in retail, family ran several pubs for decades, so no stranger to the trade. Hope that helps.

Like others have noted, sales outlets up over 50% heading in to peak trading. Good margins, and slick back end operations will pay dovidends.

Double checked my research this week. All points toward to continued growth. The main market for all distil brands are growing, they are going to get a boost from that perspective alone, so distils focus, strategy, and progress is spot pn.

[petersinthemarket] 06/11/2016 12:11

>>>alcoholtradebuyer - 5 Nov '16 - 1804
Looks like its priced to BUY now.......

I am intrigued by your newly registered handle on 5nov. I note you have made very few contributions yet but they are all on the booze business. Perhaps this is not usually a proper question to ask any contributor but in this case I will risk it. If your handle is a proper description of your employment are you prepared to give us some clues to your background in the subject. Genuine trade views could be very useful to us, Tks, pete

[alcoholtradebuyer] 05/11/2016 14:53

Looks like its priced to BUY now, ready for the christmas booze fest, and USA sales starting, now all approvals for redleg are in AND blavod is back on the shelves.

They have the holy trinity of modern day bar drinks, and the market is growing year after year.

To have such success so early in its launch is outstanding since release to the trade and retail sectors. So where is this going to be in the future? Multiple of today imo. The next fevertree stye phenomenon.

I'm vVERY excited here, there is a buzz about the brands in the trade, especially RedLeg. Brand presence is equaly important as sales, and both are in a rising trend in the trade, and thats just the UK. They are about to crack the US early next year. The system, infrastructure, contacts and experience to do it is there right now. So much growth potential here, but its the US market where the fun starts.

The brand buy out scenario at mutiples of market cap is the ultimate game plan, too much to ignore imo.

Time to buy low cap growth stocks like this is when they are at THIS precise stage.

Don Goulding has stated the valuation is too low, and thats before the real growth news kicks in. So you should start thinking of buying before the herd.

Expect to see this 3-5p in the new year as news flows and events unfold.

[someuwin] 04/11/2016 14:13

RedLeg Rum ‏@RedLegRum · 24 minutes ago

Fancy a #FreebieFriday bottle of RedLeg? Simply RT this post & follow to be in with a chance to #win! #Competition

[petersinthemarket] 03/11/2016 19:57

This is one of the most frustrating shares I have ever held. Promises, promises. A constant feeling that there will be jam tomorrow, lots and lots of jam. But it never quite happens. At least not yet. That doesn't mean it will never happen. In fact I was surprised that a tiny break even was not announced recently. Did someone suggest selling? No long termer here is going to be stupid enough to do that. It's absolutely plain to anyone who can both read and count that there is huge momentum now. It seems to me to be a given that next Spring the FY figures will finally give us not just a break even but a very real, if modest, profit at last and then we will really see the share price jump. If it follows the usual pattern there should be a TU in May2017 and Finals in June2017 and we will see the benefit of Christmas and New Year sales. This is a strong company well run by people with massive industry experience who want a pay out as much as we do. The company has no debt and the distribution volumes are plainly increasing very rapidly. Despite my constant moaning about the slow pace of progress, I still believe in this company. And I have bought substantially more stock this calendar year. This is a company that will pay out big time, if only I can hold my patience for a bit longer. I am looking forward to a serious amount of jam in 2017. GL holders. pete

[berny3] 03/11/2016 17:08

Cheers LR2 a good write up.

[lr2] 03/11/2016 14:56

Thanks Berny, those two dots were enough to tell me that Advfn were prohibiting the posting of information from a competitor site. So, I sought it out and have pasted the first page below.

For anyone who wants to read it all replace the 'eyeeyeeye' in the following link with 'iii' to access the full report.



Building the brands and filling the channels

Further loss reduction at interim stage

Distil has delivered further strong progress in its interim results.
These mirror the pattern of last year’s interims with a substantial
reduction in operating losses, new major retail listings, another full
TTB approval for sales into the US and a strong volume uplift across
key brands. In summary, Distil is continuing the process of brand
building across all channels, with a clear operational focus on the
development of its key brands in its key markets.

 Interim results: The first half performance has been strong, delivering
top line revenue growth of 26% in the period to £0.666m, despite
lapping against pipeline fill to the major retailer listing won in April
2015. This particularly impacted Q1, when sales revenues were up
5%, so top line growth has been considerably more impressive in Q2.
Production volume in litres increased by 16.4%, which compounds on
last year’s interim volume growth of 23%. Despite investment in
headcount to support Distil’s continued growth, operating costs remain
well controlled and rose at a slower rate than turnover. Consequently,
the operating loss decreased by 26% to £66K, compared with £89K
last year.

 UK listing gains: During H1, Distil announced further listing gains
within the UK. In August, Distil announced the listing of RedLeg within
the leading premium grocery chain in the UK, followed in September
by the announcement of the listing of both RedLeg and Blackwoods
Vintage Dry Gin at another of the so-called Big Four UK grocery retail
chains. RedLeg is now listed at three of the Big Four chains, which will
significantly increase brand awareness.

 Full TTB approval for RedLeg: Distil received finalised label approval
for RedLeg from the TTB (US Alcohol and Tobacco Tax and Trade
Bureau) in October. Having crossed this final hurdle, Distil is planning
production and shipments into the US in Q4 of FY17.

 Unchanged forecasts: We are leaving our forecasts unchanged at
this stage. The increased momentum seen in Q2, together with the
new listings and support activity secured for the peak Q3 trading
period in FY17, should underpin top line performance in H2. Given the
broadly break-even performance delivered in H2 last year, FY17 PBT
forecast risk now appears weighted to the upside in our view after
these interim results.

[dante17] 03/11/2016 12:33

And Miton did a heck of a lot of research before piling in, so calling this a sell is nonsense.

[dante17] 03/11/2016 12:30

Seriously? Perhaps you're forgetting that Blackwoods gin keeps appearing in lists of the world's top ten gins, and RedLeg is about to appear in the US market. Blavod may not be booming, that's true, but it's got its loyal fan base and it IS selling in the states. When Eastern Europe recovers, so will Blavod's fortunes. Diva is a waste of time, but this plc is definitely NOT a sell and avoid.

[yindag] 03/11/2016 11:43

There is NO buying opportunity here this is a strong sell and avoid.
The latest results show that this company is not worth a listing.
They admit that Blavod Vodka is worthless and shows significant loss in sales.
They also make it obvious this is about 2 brands and 2 brands only Red Leg and Blackwoods Gin NOT the vodka.
None of the other brands are selling and nobody in their right mind would want them.

The Rum and the Gin are up against fierce competition and they also cannot gain any significant presence in their markets.
The costs of running this PLC outweigh any benefit of having a listing and it should be delisted to save costs asap.
The amount of cases of booze sold each year over the entire range is less than a busy city pub pumps out in 1 month.
Its clear they cant sell enough of the Rum and this is borne out by my own research in my local outlets who all tell me its nothing exciting saleswise and supply is erratic.
I gave it a punt but sold on these results as its clear to me I wont make one single RED cent here.

[someuwin] 03/11/2016 09:50

Buying opportunity is the phrase here.

[berny3] 31/10/2016 10:30

The listing has been used to raise equity financing. If you look back at the history of the company it was previously saddled with debt. If you go back and look at Blackwoods Gin (the company) prior to it being bought by then Blavod the reason for the companies failure (well one reason) was that it was saddled with debt. Currently Distil has no debt, over the past 5 years there have been increases in share capital to aid expansion and remove debt. A drinks company at this stage of its growth cycle with the this level of growth with no debt is quite rare.

If you look at the drinks sector as a whole you'll note that the business is cash fronted - buying bottles, liquid and paying taxes. This is especially so if you are a small producer (limited ability for credit lines. even more so if you are dealing with large retailers who have you on 15 - 30 day credit facilities.

The company is now in a position where it is operationally profitable and therefore the requirement to raise additional cash to support growth and working capital has significantly reduced. IMO

The benefits of being listed are several:

Firstly being listed requires a certain set of exchange rules the company has to adhere to. Corporate governance, audited and public reporting and disclosure to name a few. By being listed an investor is aware that the company is overseen by the rules of the exchange and therefore it provides an element of comfort. To attract large and institutional investors this is critical.

Listing provides a market to trade the shares. Without a market to trade the shares their value would drop as the cost of trade would be extremely high. (to name one of several variables)

To become listed is very expensive far more than the yearly fees. Therefore there is a value in having a listing.

[boffster] 31/10/2016 09:06

Berny, I do sometimes wonder if you're here to make money or because of some sort of emotional attachment to this stock. . Distil don't seem to use their listing to raise money, I'm struggling to see the point of it

[someuwin] 31/10/2016 08:06

Should move back up from this level - imo.

[berny3] 31/10/2016 07:47

why?

it illustrates that the company is now operational profitable.

A listed company is worth more than a delisted one.

there is value in having a listing

[boffster] 30/10/2016 22:55

If that is the case they ought to de-list.

[berny3] 29/10/2016 16:30

Quite fitting for Blavod and Halloween.

What is interesting when you look at the accounts on Companies House you'll see Distil Company Limited made a profit of £60,000 last year. It is the costs of the plc that is taking the company into a loss. Listing costs appear to be circa £150K. So taking into account £75K of listing cost for HY the underlying company is operationally profitable.

[dante17] 29/10/2016 15:47

Yes, I noticed that too Berny. Coincidence? Unfortunate number though.

[berny3] 29/10/2016 12:37

Another figure that is worth noting

March 2015 FY T/O £666,000
September 2016 HY T/O £666,000

So in 18 months trading T/O for the half year during the quiet period is at the same level as full year 18 months previous.

[berny3] 29/10/2016 09:34

Quick notes

looking at the figures we know 1st 3 months 1% growth in volume and 5% growth in revenue. full 6 months 25.7% growth in revenue and 16.4% growth in volume.

therefore last 3 months contributed 41.4% growth in revenue and 30.8% growth in volume.

going into the xmas period last year.significant listings 2 * lines in Sainsbury circa 800 plus 1 listing tesco circa 700 = total 1,500

going into the xmas period this year previous listings = 1,500 plus 2 * listing Morrisons circa 800 plus 1 listing Waitrose circa 150 = total 2,450

63% growth in potential distribution outlets

[lr2] 28/10/2016 15:02

Pretty sure it refers to financial quarters. Under the 'Outlook' section they refer to the 'important Q3 period' which I assume is the lead up to Christmas. Therefore the USA production and shipments will commence at some point between January and March.

Q3 wouldn't even be in the 'Outlook' section if it was a calendar Q3, it would be part of the half year results.

[someuwin] 28/10/2016 14:33

The other good news is that at long last we now know they will start SELLING Redleg Rum in USA soon (Not sure if Q4 means calendar 2016 Q4, or Distil's finacial Q4 which is calendar 2017 Q1 - but either way, soon)

"In October we finalised label approval by the TTB for RedLeg in the USA; production and shipments are now planned for Q4."