Regulatory Story
Company Blavod Wines & Spirits plc  
Headline Half-yearly report
Released 07:00 26-Nov-2010
Number HUG1465853

Half-yearly report

Blavod Wines and Spirits plc ("the Company")


26 November 2010


Interim Results for the six months ended 30 September 2010.


Blavod Wines and Spirits plc (the "Company"), the owner of the Blavod Black Vodka brand, and wines and spirits distributor, announces its unaudited interim results for the six months ending 30 September this year.




Gross sales at £3.98 million (2009: £4.0 million) and gross margin at £763,000 (2009: £775,000) were broadly unchanged from last year. Spending behind the brands and overhead charges were slightly increased, leading to EBITDA of £49,000 (2009: £91,000) and a loss of £12,000 against a profit of £45,000 last year.


The measures announced at the beginning of the financial year to regain distribution, improve margins and reduce costs have begun to take effect. The Company has experienced year on year double digit growth in case sales of its own Brands and Blavod in its new packaging is back in a major supermarket chain. On the other hand, price increases have led to a major agency brand losing distribution in one large account.


As expected, volumes and margins of Cockspur rum fell away sharply following the announcement that this contract was to be ended, resulting in a much reduced contribution, even after compensation had been received.


For the second half of the year, export orders are strong; margins have now been improved across all major brands; overhead levels have been reduced and are forecast to be 7% lower in the second half than in the first; the new packaging of Blavod has reached retail shelves and is beginning to be exported to a favourable reception and the cash position of the Company is satisfactory with factoring facilities in place.


Longer term, we will build on our experience in the dynamic rum segment, in which we more than doubled Cockspur sales over 3 years, by introducing our own brand of rum in the new year and we plan to add a small number of additional brands to the portfolio.


Unfortunately we expect the Company's involvement in wine will decline significantly in 2011/12 as Domaines Baron de Rothschild (DBR) have decided to consolidate their activities within other Rothschild entities.




While export is now improving strongly, the UK market remains uncertain for all our brands, both for the obvious economic reasons and because a large share of volume is reliant on a small number of large customers.  We continue to be very cautious in extending credit. Given these uncertainties the directors do not at this time foresee a profit improvement for the full year over 2009/10.




The Company strengthened its board when Mr Don Goulding and Mr Mark Quinn were elected at the AGM in July.  Early in 2011 Mr Lawrence Banks and Mr Colin Campbell will withdraw from the Board. Mr Don Goulding will then take the position of Executive Chairman, the enhanced title reflecting the extra time he will spend and deeper involvement in the strategic direction of the Company. Mr Mark Quinn will be head of the Audit Committee. A further announcement of these changes will be made when they take effect.



For further information, please contact:


Blavod Wines and Spirits plc                           Tel: 0207 352 2096

Richard Ambler


Brewin Dolphin Corporate Advisory & Broking     Tel: 0845 213 4726

Neil Baldwin



Condensed consolidated comprehensive interim income statementSix monthsSix monthsYear
 30 September30 September31 March
Profit & Loss   
Cost of sales(3,223)(3,233)(6,745)
Gross Profit7637741,571
Advertising and promotional costs(135)(98)(268)
Non recurring costs0(23)(21)
Other administrative expenses(579)(562)(1,204)
Total administrative expenses(714)(683)1,493
Depreciation & amortisation(3)(2)(6)
Operating Profit468972
Finance income0020
Finance expense(58)(44)(107)
(Loss)/profit before tax from continuing operations(12)45(15)
Income tax000
(Loss)/profit before tax from continuing operations(12)45(15)
Earnings per share:   
From continuing operations   
Basic (pence per share)(0.01)0.05(0.02)
Diluted (pence per share)(0.01)0.05(0.02)
Condensed consolidated interim balance sheetAs atAs atAs at
 30 September30 September31 March
Non current assets   
Property, plant and equipment272024
Intangible fixed assets1,3661,3061,311
Total non current assets1,3931,3261,335
Current assets   
Trade and other receivables1,9782,2911,827
Cash and cash equivalents10485118
Total current assets2,7842,7602,557
Total assets4,1774,0863,892
Non current liabilities   
Total non current liabilities(397)0(397)
Current Liabilities   
Trade & other payables(1,071)(1,064)(974)
Finance facility liability(1,105)(1,306)(905)
Total current liabilities(2,176)(2,370)(1,879)
Total liabilities(2,573)(2,370)(2,276)
Net Assets1,6041,7161,616
Equity attributable to equity holders of the parent   
Share capital(878)(878)(878)
Shares to be issued(717)(701)(717)
Retained earnings(9)(137)(21)
Total equity(1,604)(1,716)(1,616)
Condensed consolidated interim cash flow statementSix monthsSix monthsYear ended
 30 September30 September31 March
Cashflows from operating activities£,000£,000£,000
Operating Profit468972
Adjustments for:   
Share based payment0016
Net foreign exchange gain/loss020
Movements in working capital   
(Increase)/Decrease in inventories(90)68(160)
(Increase) in accounts receivables(151)(567)(103)
Increase/(Decrease) in trade payables97(20)(65)
Cash (used by) operations(144)(519)(328)
Finance Expense(58)(44)(90)
Net cash (used in) operating activities(153)(470)(324)
Cashflows from investing activities   
Purchase of property plant  & equipment(6)(12)(18)
Expenditure relating to the acquisition and registration of licences and trademarks(55)(47)(152)
Net cash (used in) investing activities(61)(59)(170)
Cashflows from financing activities   
Net cash received from finance facilitiy200411160
Net cash received from convertible loan note00400
Net cash received from directors' loan01500
Net cash from financing activities200561560
Net (decrease)/increase in cash and cash equivalents(14)3266
Cash & cash equivalents at the beginning of the period1185252
Cash & cash equivalents at the end of the period10485118
1. Basis of Preparation - This interim report was approved by the Board on 25 November 2010.  These consolidated financial statements are for the six months ended 30 September 2010.  They have been prepared in accordance with International Finance Reporting Standards (IFRS) and International Financial Reporting Interpretation Committee (IFRIC) interpretations as at 30 September 2010, as adopted by the European Union. They do not include any of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 March 2010.  This condensed consolidated financial information does not comprise statutory accounts within the meaning of Section 434 of the Company Act 2006.  Statutory accounts for the year ended 31 March 2010 were approved on 11 June 2010.  These accounts, which contain an unqualified audit report under Section 495 of the Companies Act 2006 and which did not make any statements under Section 498 of the Companies Act 2006, have been delivered to the registrar of companies in accordance with Section 441 of the Companies Act 2006.
2. The six month prior year comparatives have been changed to the format presented in the full year accounts to 31 March 2010. In addition the six month amortisation charge of £25k included within the six month prior year comparatives has been reversed consistent with the full year presentation.
3. Availability of the interim statement - copies of this interim statement will be available from the Group's head office at 202 Fulham Road, London, SW10 9PJ.





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