Company has lost momentum on local sales in recent times as...

Company has lost momentum on local sales in recent times as discretionary income has been impacted by interest rates and rising costs of living.I believe they are in the best position now to grow sales sustainably and hit exports. It is just an execution play now IMHO. Despite the odd knocker, they deliver a very fine product.

They now have a CEO with the experience and contacts (particularly through Asia) to grow the business. They have been running a bit cost heavy on headcount and arguably have had a false start on exports, they they originally flagged they wouldn't have started exports until now as they needed to build inventory, but they bought the Pontville estate which gave them inventory to start earlier than anticipated, they werent really in position then as they hadn't refined their product mix and really bedded down what they wanted to offer to the global market, I belive this is dont now with the launch of the signature range.

Over 2.4m litres of whisky in the bank that is costing them probably $30 per litre to lay down (this will reduce with scale from planned new distillery), and, they are selling this for at least $300 per litre retail (say $150-$200 per litre wholesale) through the Symphony offering. So, you can see the economics there alone... So 2.4m litre at even $100 margin per litre is $240m of GP$ value in inventory (at matured value).. vs mkt cap of $113m, no debt and $7m of cash.

Full company and strategic review due in October. this should lay out the roadmap for the next 24-36 months from the CEO.

DYOR, but it really is a simple story from here, crack exports while maintaining solid margins, get positive cash flow and recycle that capital into more new whisky and keep growing sales. Get some positive momentum over the next 3 years and get bought out by WG&Sons....

GLTAH.