9th Jun 2014 09:44
LONDON (Alliance News) - Shares in Distil PLC Monday posted a narrowed pretax loss in the year to end-March, despite seeing revenue decline, as it shifted its business model to focus on its own brands and moved away from third-party distribution.
The drinks brands owner posted a pretax loss of GBP392,000, narrowed from GBP738,000 in the previous year, as revenue declined to GBP2.4 million from GBP3.8 million in the previous year. In the previous year the company posted GBP299,000 in exceptional costs relating to a failed acquisition.
Distil also said its cost of sales dropped to GBP1.8 million from GBP2.9 million, and administrative expenses declined to GBP942,000 from GBP1.5 million.
Distil, formerly named Blavod Wines & Spirits, said it had continued to transform its business during the year by switching its focus towards the development of its owned brands. As part of this strategy, the company ended its distribution deal with Bruichladdich Distillery, and opted to stop distributing Babco (UK) Ltd's Mickey Finn liqueur.
In May 2013 the company completed its acquisition of brands Blackwoods Gin and Vodka, Diva Vodka and Jago's cream liqueur. Using funds raised in a private placing in October, the company re-launched the Blackwoods Vintage Dry Gin and Blackwoods Limited Edition 60% ABV products in September, following by Blackwoods Vodka in March 2014.
Sales in Blackwoods Gin rose 36% during the year, Distil said, and RedLeg Spiced Rum sales were up 37%.
The re-branding of the Diva and Jago's products is nearing completion, and Distil expects to re-launch the products later in the year. Distil's primary focus is to return to a sustainable break-even position, and ultimately turn a profit, it said.
Shares in Distil were trading down 14% at 1.01 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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