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from Ian Macleod Distillers

Ian Macleod Distillers financial results

22nd July 2008

21 July 2008, Broxburn: Ian Macleod Distillers Ltd, one of the largest independent family companies in the spirits industry, has announced its financial results to 30 September 2007.

Financial Highlights

  • Profit before tax increased to £992,475 (2006: £783,060).
  • Gross profit increased from 34.3% to 36.6% due to better margins on export and bulk trade, and despite the reduction in margin percentage applying to the UK.
  • Group turnover decreased by £1.4M (6%) to £20,571,521 (2006: £21,982.772) due to changes in the approach to the UK market.
  • 50/50 joint venture with Broxburn Bottlers trading very soundly.  The profit on the j/v has been reinvested in new plant and equipment at Broxburn Bottlers, in order to help improve capability and future efficiencies.
  • Flagship Glengoyne brand grew by 10%.

In the UK market sales of the key home brands are now handled by Harvey Miller Wine & Spirits Agencies, following the company's decision not to run an in house UK sales force. This has saved a significant overhead.  The change in distribution channel reduced the excise duty paid and excise contribution to turnover by £0.8M.  The balance of the turnover reduction in the UK is due to new pricing structure of UK brands reflecting the new distribution arrangements and the end of an own label supply contract to a high street multiple.

Ian Macleod has benefited from its strategy of maintaining a diversified portfolio of countries and spirit brands. There is no significant exposure to one market and major changes in one area have little impact on the total result. Price increases on volume-driven three year old blends, to cover cost increases and address competitive pressures on spirit supply applied in the early part of 2007, were initially resisted by the market.  This had a short term impact on volumes but overall turnover held up with the effect of postponing greater turnover growth to the current year.

Leonard Russell, Managing Director of Ian Macleod Distillers, commented: "As an independent family-owned company we do not need to focus on short-term returns for shareholders but are able to focus on the longer term, in markets that have the best growth potential for our products, such as developing Asian markets and Russia.

"The market for single malt whisky worldwide is also gaining momentum and there is the potential for further growth, with improved margins in the year ahead.  We are also developing a super-premium range of Glengoyne 1972 and older high-value items which are being very well received.

"In addition we have invested substantially in staff, in stock and in new product development, the latter of which has dramatically increased our travel retail profile.

Ian Macleod Distillers Ltd is the brand proprietors of a wide range of quality products including Glengoyne Highland Single Malt Scotch Whisky, Smokehead Islay Single Malt, Isle of Skye Blended Scotch Whisky and London Hill Gin.

For further press information or images contact:

Robyn Glynne-Percy or Kerry Teakle

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