Distil (AIM:DIS), the owner of several spirits brands, saw its shares stage a recovery on Thursday, a day after it slumped on a profit warning and a warning of a funding gap.
Shares in the small-cap firm increased close to 30% to 0.32p today, after dropping more than 50% following its cautioning to investors.
The London-listed group said unfavourable market conditions combined with inflationary headwinds have “created an immediate short-term funding need within the business”.
Funding options are currently being explored, but shareholders are said to “remain at the heart of all decisions”.
Full-year guidance was cut by the group after it suffered a 55% drop in sales during the four months to July, reaching £204,000, down from £453,000 in 2023.
Management had anticipated lower sales during the start of its financial year but said the results still ended up below expectation.
“While this is an issue affecting all global markets, for 2024, this has been exacerbated in the UK by the poor weather, leading to further curbs on socialising both in and out of home,” said chairman Don Goulding.
Earlier this month, shares in FTSE 100 spirits firm Diageo dropped to their lowest point since the pandemic after the Smirnoff owner reported a fall in sales and profits.