One of the founders of mixer maker Fever-Tree is toasting a £82.5m payday after cashing in on the firms recent success by selling a stake in the group.
Its deputy chairman, Charles Rolls, offloaded a 2.6% stake almost doubling the number of shares he originally intended to sell after significant demand from institutional investors, according to a Stock Exchange announcement.
He sold 3m shares at a price of 2,750p each.
It comes after the tonic water group saw its share price rise more than 1,000% since its stock market flotation in late 2014.
Shares in the group have risen more than 90% over the past 12 months alone.
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Rolls continues to own an 8.6% stake in the company.
Last year, he banked £73m from another shares sale.
Named after the tree in which quinine a key ingredient for tonic is found, the company wanted to offer a premium tonic water with no artificial sweeteners, preservatives or flavourings.
Rolls, along with co-founder Tim Warrillow, produced the groups first bottle of tonic water in 2005 and now sell 12 different mixers.
The group has rapidly expanded its international sales in recent years and now makes the bulk of annual revenues from outside the UK, with key overseas markets being the US, Spain and Belgium.
ii brokers quote Bid:2,827p Offer:2,833p at this moment, so there is already some recovery.
Rolls deserves his money in the light of the company's past track record, I wonder what his Capital Gains bill will be.
I m afraid the dip will happen for a short while,then a pick up i hope.
General selloff is also in the background.
I have Buford share 2 directors sold last week and share price plummeted from 1500 to 1292 today and still slipping.I have sold all.Cant trust Trump.
I shall buy back.
I liked the article from the Times this weekend about Conviviality and its problems. Hours before it dived a broker note was issued to, yes you guessed it - BUY
In a 22-page note, Investec analyst Kate Calvert explained why shareholders should load up on Conviviality, the owner of the Bargain Booze and Wine Rack chains. Its one-stop proposition is resonating with consumers, she wrote, before predicting that the shares would soar by 55% to 455p apiece.
In a matter of hours, her breezy optimism had been demolished. That afternoon, Conviviality served up a super-strength profit warning that has left the former stock market darling fighting for its life.
From Today's RNS
Andrew Branchflower (Finance Director), on 13/3/18 exercised options on 151,905 shares at a total price of £184,834.39 (average £1.21678 per share).
He then sold 176905 shares at an average of £25.886 per share, totalling £4.58M approx. (assuming all of my arithmetic is correct).
He still "remains interested" (presumably this mean he holds options) in 141488 shares, which is approximately 0.1% of the Company's share capital.
It looks like he is good at directing his own finances.
Tim Warrillow, chief executive, insisted that there was nothing in the results to give investors any cause for caution or concern. He suggested that the fall was probably down to a bit of profit-taking after the shares briefly hit an all-time high of £28.83 yesterday.
Andy Branchflower, finance director, said that because Fevertree was still a growth business now was not the time to be increasing the dividend policy, although he did confirm: We wont hold on to it for ever.
In the UK, its biggest market, sales grew by 96 per cent amid continuing demand for a premium gin and tonic, with the performance over the key Christmas trading period particularly notable, with an impressive rate of sales growth across all channels, formats and flavours.
It said that it had ended the year as the best selling mixer brand in the UK off-trade by value, although Schweppes remains the number one by volume.
In America, where it has just set up its own operation to oversee sales and distribution, sales grew by 36 per cent at constant currency, while in Europe sales were up 37 per cent on the same basis, helped by a growing taste among Italians and Germans for moscow mule cocktails made with vodka and Fevertree ginger beer.
The group said that it continued to benefit from innovation, with sales of flavoured tonics jumping by 200 per cent, with particularly strong sales in the UK over Christmas of its limited-edition clementine tonic.
The group reported revenues up 66 per cent to £170.2 million, just ahead of consensus forecasts of £169 million, while underlying earnings jumped by 64 per cent to £58.7 million on an adjusted basis. Pre-tax profits grew by 59 per cent to £56.4 million.
Well I think thats a first FECR in the Guardian News, so mainstream and investors radar.
Fever-Tree tonic became the number one mixer brand in shops in Britain last year, and is also popular in North America, where people are consuming more long drinks. In Italy and Germany, the companys non-alcoholic ginger beer brand, Moscow Mule, is selling well.
Guardian Today: the headlines, the analysis, the debate - sent direct to you
The firm said annual revenues rose by 66% to £170m, propelling pretax profits up 64% to £56m in 2017.
But the Aim-listed shares dropped 4% to £25.83, as investors were hoping for a better outlook.
Warrilow said: We have had an encouraging start to 2018 and remain confident that we are increasingly well positioned to deliver further growth across the business.
Neil Wilson, a senior market analyst at ETX Capital, said: The market has become rather accustomed to Fever-Tree beating expectations and upgrading guidance, so when results are just moderately ahead, things look a little flat.
He added: Fever-Tree will need to deliver on its promise to reinvigorate the dark spirits category and do for this sector what it is done for gin over the last 10 years.
For those who perhaps thought the outlook statement is disappointing, I paste belowboth last years and todays outlook. Spot the difference! Look at the results today and see what that statement led to in 2017. Heres hoping for a similar meaning in 2018!
We have had an encouraging start to 2017 and I look forward to working with my Board colleagues and the wider Fever-Tree team to continue to deliver growth.
We have had an encouraging start to 2018 and I look forward to working with my Board colleagues and the wider Fever-Tree team to continue to deliver growth.
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