Distil (AIM:DIS), the AIM-listed owner of RedLeg Spiced Rum, Blackwoods Gin and Vodka, and Blavod Black Vodka, confirmed it will fail to publish its audited accounts for the year ended 31 March by the 30 September deadline, and trading in its shares will be suspended from 7.30 am on 1 October.
The delay follows a "root and branch review" of the business launched after new chief executive David Smith arrived on 17 August, covering the operating model, cost base and strategy following the July move to distributor Fortitude Drinks.
The review has already identified more than £250,000 in annualised fixed overhead savings, largely actioned, but has also forced a financial reforecast that Distil says is needed to complete the audit and establish its working capital requirements.
The company cannot finalise the audit until it secures additional funding.
Distil said switching distributor from Global Brands to Fortitude Drinks prompted two UK grocery customers and its Australian retail customer to delist RedLeg, though it said these listings were collectively loss-making after marketing costs and have been factored into the revised forecasts.
Distil is also close to appointing two new independent non-executive directors, conditional on completing the funding process and nominated adviser due diligence.
The company said it will update the market on the timing of the accounts and funding process "in due course".