Member Info for WolfofWS

I guess this was the last update from Distil. I have previously said that with no turnover and high running costs you cannot survive. At this level a capital increase does not make any sense anymore — on what basis should anybody invest?

Interestingly, this is the first trading update I have ever seen from them without a single absolute number. The turnover figures in absolute terms must be so terrible that they chose not to disclose them.

There is only one option left. Run.

I said earlier this trading update would decide Distil’s future — and here we are. Christmas quarter sales barely equal the CEO’s annual salary. That’s not a business, that’s a red flag.

Based on last year’s cost structure, management should already be preparing the next capital raise. But in a shrinking market, with losses growing faster than turnover, that’s going to be extremely difficult. If they do manage to raise again, existing shareholders will be hit with severe dilution.

Personally, I think this is close to game over. I’d be very nervous as a director trying to raise money on this outlook, and I doubt the market has much appetite left.

Why they are buying a company which makes more loss than turnover and will need in it´s current state about 2m for the next 2,5 years alone (please read the Allenby analysis about Distil and they believe they will grow 25% and 40% in the coming years in a shrinking market - no clue why they can believe this). With the current valuation this means nothing is left for existing shareholders if they are able to raise this amount of money. In my view it´s more about when they go into administration and not about regaining of old share prices. In a declining alcohol market (-8% alone last year) with extreme pressure on B-brands to stay listed in retail it´s not the best place to be invested. I believe the next trading update will define if they can hope or go into administration. @Blavod having an importer does not say anything about distribution - many brands have an importer, but no sales - sorry don´t want to crash the party, but I cannot understand positive mood of these posts.