Distil PLC
28 September 2026
Distil Plc
Delay in Publication of Annual Results; update and funding progress
Distil plc (AIM: DIS) (the "Company") announces the following update with regard to the publication of its audited report and accounts for the year ended 31 March 2026 ("2026 Accounts"), ongoing operations and funding progress.
Following the arrival of a new CEO, Dave Smith, on 17 August 2026, the Board of Distil has undertaken a root and branch review of Distil's business, including its operating model, cost base, strategy and new distributor relationship (as notified on 13 July 2026), which will fundamentally alter the Company's business model.
Following this review the Board concluded that the Company's business model and strategy needed to be significantly re-engineered. That work is largely complete with the go forward strategic focus of the business known and agreed. To date, annualised fixed overhead savings of in excess of £250k have been identified and have largely been actioned. The review has necessitated revised operating assumptions and a financial reforecast of the business which is required, inter alia, in order to complete the audit of the 2026 Accounts and establish the working capital requirements of the Company.
A known risk in changing distributor is that a retailer may use that change to reassess a brand's listing status. In the change of distributor from Global Brands to Fortitude Drinks, two of the Company's UK grocery customers chose to delist Redleg. In addition, the Company's Australian retail customer also chose to delist this brand. Although these listings represented a material amount of revenue in the last financial year, they were collectively loss-making after taking into account the cost of advertising, marketing and promotion, thus why the Board has acted to re-engineer Distil's business model and strategy going forward. These delistings have been factored into the reforecast financial projections.
As previously announced on 24 March 2026, the outcome for sales in the last complete financial year created an immediate short-term funding need within the business. This funding need was partially addressed by the Ardgowan settlement (as detailed in the notification of 4 June 2026). The Board has been exploring funding options to address that need and is currently in the latter stages of finalising additional funding to provide working capital and support the new go forward strategy. This additional funding includes an intended material investment from a drinks industry focused strategic investor. The Board anticipates completing the fundraise during October. Whilst the Board expects, based on negotiations and representations to date, that this investment will be at a premium to the current share price, there can be no guarantee that the fundraise will be concluded nor to the final terms of such investment.
The Company will be unable to finalise the audit of the 2026 Accounts until it has secured additional funding. As a result, Distil will not be in a position to publish its 2026 Accounts by 30 September 2026, being the six-month deadline prescribed by AIM Rule 19. Accordingly, trading in the Company's ordinary shares will be suspended with effect from 7.30 a.m. on 1 October 2026 pending publication of the 2026 Accounts. The suspension will be lifted following publication of the 2026 Accounts, subject to the requirements of the AIM Rules.
As part of the business review, the Company is updating its board structure and governance arrangements, and is close to finalising the appointment of two new independent NEDs. The appointments are conditional on completion of the funding process and customary due diligence by the Nominated Adviser.
The Company will make a further announcement regarding the expected timing of publication of the 2026 Accounts and completion of the funding process in due course.
** ENDS **
For further information:
|
Distil Plc |
|
|
Philip Naughton, Non-Executive Chairman David Smith, Chief Executive Officer |
Tel: +44 203 283 4006 |
|
SPARK Advisory Partners Limited (NOMAD) |
|
|
Neil Baldwin / Mark Brady |
Tel: +44 203 368 3550 |
|
Allenby Capital Ltd (Broker) |
|
|
James Reeve/Jos Pinnington/Matt Butlin |
Tel: +44 (0)20 3328 5656 |
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014, and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
ENDRNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.