Distil swings to a profit as heightened marketing investment bares fruit

Drinks maker Distil swung to a profit after revenues and profits improved across the first half of its trading period as a result of operational improvements and an increased investment into brand marketing.

Distil's revenues grew 42% in the six months ended 30 September to £1.16m, leading to a 54% increase in gross profits to £710,000.

The AIM-listed outfit, responsible for the likes of RedLeg Spiced Rum, Blackwoods Gin and Diva Vodka, poured £312,000 into brand marketing and promotions throughout the half - an additional 56% year-on-year.

Operating profits came in at £101,000 in the half - a marked turnaround from the £21,000 loss reported the same time a year earlier.

Cash reserves grew 38% to £957,000 as the group attempted to bolster its bank balance ahead of the UK's exit from the EU in March.

Executive chairman Don Goulding said: "The strong growth momentum enjoyed in the previous financial year has continued into the six months to 30 September 2018 and I am pleased to report healthy year-on-year increases in revenue, profit and cash."

"We have also ensured all planned measures to maximise benefits and offset possible risks relating to the UK exit from the EU have been finalised and fully implemented, well ahead of the anticipated date of March 2019."

As of 1125 BST, Distil shares had shot up 17.27% to 2.58p.