Distil plc (LSE:DIS), the AIM-quoted drinks company behind RedLeg Spiced Rum and Blackwoods Gin and Vodka, warned on 24 March 2026 that its financial year would end well short of expectations and that it has an immediate short-term funding need.

What the company does

Distil owns and markets spirits brands, among them RedLeg Spiced Rum, Blackwoods Gin and Vodka, and Blavod Black Vodka. LSE:DIS also holds a stake in Ardgowan Distillery, a project in Scotland, through convertible Loan notes. It has opened a visitor experience called Blackwoods Brand Home.

Latest developments

In the trading update of 24 March 2026, Distil said Revenue for the final quarter, to 31 March 2026, was well below forecast and that full-year revenue would be materially below market expectations. The loss before tax would be larger than previously anticipated. LSE:DIS blamed higher than expected stock held in the trade globally, which affected the timing of purchases, as well as weaker consumer spending and a further increase in UK spirits duty on 1 February 2026 that it estimated adds at least 50 pence to a bottle of its core products. It also cited a 0.9% fall in UK spirits Market Value in the 12 weeks to 3 January 2026.

There were positives. Sell-out through its UK distributor rose 51% year on year in the first two months of 2026, and RedLeg consumer sales rose 36% over Christmas against a category decline of 5.2%. However, the planned United States launch of Blavod Black was delayed by a submission issue under the Craft Beverage Modernization Act, with the distributor expecting resolution in the first quarter of the next financial year.

The board said it was exploring funding options, reviewing distributor arrangements and had agreed promotional activity with major grocery customers through the first quarter.

Financial picture

No full-year figures for the year to 31 March 2026 were located. The last final results were dated 30 September 2025. Distil holds 3 million pounds of convertible loan notes in Ardgowan Distillery, carrying a 6.5% coupon, which on conversion at a 30 million pound pre-money valuation would equate to 10.5% of Ardgowan's share capital. Ardgowan production was behind schedule because of power Supply problems, delaying further Debt funding that depends on the Volume of liquid produced. The Ardgowan board was seeking bridge funding, with the gap expected to close when production returns to schedule around the end of 2026. No Dividend is being paid.

Sector and index context

Distil (LSE:DIS) is one of the consumer names on the FTSE AIM All Share Index. UK spirits producers have faced rising duty, cautious consumers and destocking along the supply chain, while crowded categories such as gin and rum make shelf space costly.

Key risks

The immediate risk is liquidity, since the company itself said it has a short-term funding need, and any fundraising could be dilutive. Delays at Ardgowan could affect the value and timing of the loan note investment. The US launch hinges on regulatory paperwork, and weak consumer Demand and tax increases could keep pressure on volumes and margins.

What to watch next

Shareholders will look for an announcement of funding, the delayed final results for the year to 31 March 2026, progress on the US launch of Blavod Black, and news on Ardgowan production and bridge funding. Updates on the distributor review and on sales from Blackwoods Brand Home will indicate whether the positive consumer data are turning into revenue.