Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Have you seen the new adverts for Chase gin and vodka on the TV? Seems to have come from nowhere. A british gin and vodka distilled in Hertfordshire. What a lovely idea.
Behind it is the biggest drinks company in the UK Diageo.
This sits directly in DIS's gin and vodka space and probably has a marketing budget 100 times ours plus direct access to every distributor - retailers and pubs/bars etc.
Almost impossible for DIS to compete
Very slowly I think this will be turned around and begin to recover. Ardgowan is the reason and it is finally going to start
this summer. Been a tough three years but we have some quite sticky fingers in this.
Yes, a strategic investment in the form of a convertible loan.. and hopefully Ardgowan can help steer Don to his dream of a premium brand.
Dave - the Ardgowan money is not a loan it's a 'strategic investment' so essentially the £3m has been spent on the build.
Hopefully it will be reap benefits - namely a home and visitors centre for Blackwoods and a blended whisky. The blended whisky was meant to be launched in Q4 2022 so will be about 1 year late by the time it hits the shelf. Any new brand needs a marketing budget, something we don't have. A blended whisky will go up against the big boys such as Diageo and their multi million budgets
Holding these in hope the next update shows a bit of progress ...
Well let's hope the positive indications in the update come through... and don't forget we loaned £3m in cash to Ardgowan which covers the current market cap. Still can't believe they made such a mess in changing distributor.
Shandypants2, I echo your thoughts! Concerned how long this can keep trading on these ratio's, some considerable change in the short term is needed here IMO
cash was £948k at H1 so they have burnt through almost half of it in the last 6 months. Not sure how this is a positive.
Even slightly increased revenues are nowhere near what they were a couple of years ago (before the change in distributor) and company is loss making. The current cash won't last long
Possibly, but need to wait for the next update or two to see if their forecasts turn into reality, and see how much cash is in the pot then, hopefully it'll be going up instead of down.
As expected and good to see revenue re-growing.
More cash in hand than I anticipated and very positive about the immediate future.
Haven't yet decided if that makes this share price a bargain.
The last few years DIS has announced its trading update on 6 April, 9 April or 14 April. So hold onto your hats!
Again moved up on what appears to be sells… yet try to do a dummy sell on it shows NT. Strange things going on here in the background
Moving up a lot suddenly… did all the cheap shares run out already . I have noticed Duke Eric of Rothschild is a major holder here with 15% holding…
Progressive report is here
https://static1.squarespace.com/static/5f525ed5c649457a86f37751/t/63ce70a7c3426b05bf776572/1674473640746/DIS+20230116.pdf
All the way down to 0.45p now been swinging about all week within the 22% spread .
Noticed this is covered by Progressive research some sort of analyst group ( found on MATD page )
If someone has time might be interesting to post there view here .
Been watching this recently and still seeing some buys appearing nudging the SP up slightly. I do think q4 is going to be bad but into new financial year, if they sort out distribution issues, there could be a very good bounce from this level. Recently added a few to see how it goes but even with a bad final results to possibly come, I feel the next trading year may be a turnaround
cashburn is a massive concern IMHO. It is clear the distributor change has taken longer to bed in than the company expected and the 'one-off' impact is not just for a single quarter as we were let to believe. It is now already a 6 month impact and there was nothing in the RNS to give any optimism that the teething problems have now been resolved. Ultimately DIS is a small player so maybe some of the purchasers have just decided not to renew when we requested they switch from dist A to B.
For example Blackwoods was stocked by Wetherspoons. They have about 20 different gins behind the bar. I suspect they haven't bothered renewing as sales didn't justify it.
However, on a positive surely the logic of a new distributor was to open up new opportunities etc. Maybe we will see some of this in H2.
Cash burn looks high. ? Placing due?
Cash reserves at period end of £277k
Sept 2022 reported at £950K (2021: £4.22 million
DYOR.
Haggis if the revenue drop was expected and forecast why is the company now saying that full year revenues will be significantly below market expectations?
If Blackwoods have been removed from Morrisons that's a big loss. It's a great gin but always thought it should be marketed more at the premium end rather than closer to a budget brand.
We were meant to have a whisky by Q4 2022. With the current cash position this won't be happening any time soon.
If anyone is looking at Red Leg i suspect a cheeky £5m bid would be difficult to turn down. Last year when DIS was c£10m i suspect it would have needed maybe £20m to interest the BOD.
I Imagine Morrisons. It was the only retailer I ever saw Blackwoods on sale.
The November top looked good until today's RNs fell 40%
Distil shares suffer as spirit sales slump over Christmas
(Alliance News) - Distil PLC on Thursday said third quarter revenue dropped due to "one-off issues" that it believes will not continue into next year.
Distil shares were down 33% trading at 0.60 pence per share on Thursday afternoon in London.
The London-based premium drinks producer, whose brands include RedLeg Spiced Rum and Blackwoods Gin and Vodka, said revenue was GBP411,000, plummeting 48% from GBP789,000 in the same period last year.
The company said the revenue drop was down to a one-off reduction in stock market cover linked to the removal of its UK distributor, as well as a one-off reduction in stock availability over the Christmas period within a major retailer.
Distil said full-year revenue is expected to be "significantly below market expectations," with an estimated loss before interest, taxes, depreciation and amortisation of about GBP600,000.
The company noted that RedLeg Spiced Rum delivered a strong performance across other major retailers, although Blackwoods was negatively affected by its delisting by a medium-sized retailer.
We haven't got the full balance sheet but with current assets of stock, and long term assets completely solvent.
Don't work in fmcg but thought it was all just in time stuff, not 3-6 months stock in distributors / supermarkets ?
Company just seems a bit amateurish / part time hobbyish at the moment. Surely Grain isn't too happy with his buy in price and must be reading the riot act.
Is it actually technically solvent?
Agree. Bought a few some time ago because I enjoy the original Redleg spiced rum. Not, perhaps , a brilliant reason for investing! Distribution definitely needs sorting as one of the outlets I use have had it in stock for last 4 months.