11th Aug 2025 14:49
(Alliance News) - Shares in Chill Brands Group PLC dropped 43% after their restoration to trading on Monday, following a "challenging" period for the fast-moving goods distributor.
The London-based e-commerce company supplies tobacco alternatives, drinks and other wellness products to convenience stores. Chill was suspended from London's main market in June last year, following allegations of fraud and embezzlement against two former executives.
Results for the financial year that ended March 31, 2024 were delayed until June this year, as the company contended with litigation and a ban on disposable vapes.
Then in July, Chill released their accounts for the 12 months that ended March 31 this year. Pretax loss widened to GBP3.3 million over the period from GBP3.0 million a year ago, while revenue slid to GBP305,700 from GBP1.9 million.
Monday's readmission satisfied Chill's request that the FCA lift the suspension once its accounts were brought up to date. Chill shares traded down 43% at 1.23 pence on Monday afternoon in London.
The company has changed its account referencing date to September 30 from March 31, to provide "a clean break from the disrupted previous cycle" whilst complying with listing regulations. The current financial year spans 18 months. By January 31, Chill must publish earnings for the 18 months to September 30.
As of Monday, GBP477,000 of a GBP1 million convertible loan is undrawn, Chill said. Additionally, the company has access to an inventory financing facility secured back in 2023, and expects a tax rebate "in the coming months" related to 2024's exceptional costs. Chill expects current financing to sustain operations into 2026.
"While this extended suspension period has undoubtedly been challenging, it has allowed the Company to navigate a difficult chapter, stabilise operations, and emerge with a renewed strategic focus," commented Chief Executive Callum Sommerton.
"With the resumption of trading, there are compelling reasons for optimism about the Company's future. Our Chill Connect division is steadily increasing revenue and securing new commercial partnerships, while plans to revitalise Chill.com and strengthen its role within our broader business ecosystem are being enacted."
Chill Connect is the route-to-market and distribution segment, originally developed to sell own-brand vaping products, and since "repurposed to serve third-party brands", including sellers of nicotine pouches and rechargeable vapes. In terms of logistics, Chill is trying to move away from third-party outsourcing, and set up its own fulfilment sites. Other targets are a wholesale orders portal and a larger sales team, in line with geographic expansion.
Sommerton added that the company is "supported by an expanding network of commercial collaborators who share our vision for a more agile product distribution landscape."
As for Chill.com, the firm said: "While this channel currently contributes a modest portion of revenue, it remains a longer-term strategic priority." For the time being, e-commerce efforts will centre the UK.
By Holly Munks, Alliance News reporter
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