Final Results

Blavod Black Vodka PLC
11 June 2003

                             Blavod Black Vodka plc

              Preliminary Results for the year ended 31 March 2003

Blavod Black Vodka plc, owns and sells Blavod, a premium vodka brand. The
world's first black vodka continues to achieve global sales success.

  • Turnover increased by 32% on previous year.
  • Production efficiencies enable significant gross margin improvement.
  • Operating loss reduced by 51%.
  • Cash outflow of £214,000 in 2002/3 - substantially lower than prior year.
  • £1.02 million of cash in Balance Sheet.
  • New markets in Russia and Eastern Europe are promising.
  • Excellent rate of growth continues in duty free sales.

Allan Shiach, Chairman, commented:

'The benefits of increased sales, improved margins due to production
efficiencies and reduced marketing and administration expenses resulted in a
halving of our operating loss.

Real progress has been made towards breakeven and we are confident that further
progress will be made in the year ahead.'



Enquiries:
Blavod Black Vodka plc                                        Tel: [phone]
Richard Ambler, Chief Executive
David Wheatley, Finance Director



Chairman's Statement

I am pleased to report that group turnover in the year increased by 32% and that
sales of Blavod improved in almost all of our key regions. Furthermore, gross
margins improved significantly as a consequence of production efficiencies.

In Duty Free our excellent rate of growth continued and in the UK a steady
advance in sales were supplemented by improved management fees arising from
substantially higher sales of Domaines Baron de Rothschild's wines as well as
useful contributions from the distribution of Fernet Branca products.

Despite the adverse impact of recession in Brazil, which also affected our
competitors, Rest of World sales also showed significant gains. Progress in new
markets such as Russia, Poland and former Soviet Union countries more than
offset the effect of lower depletions in Brazil and look encouraging for the
longer term.

Our importer in the USA, Branca Products Corporation, has announced that it will
close its operations at the end of June and this decision contributed to a
reduction in exports of Blavod to the USA. However we believe the brand
opportunity continues in the USA and we are in advanced discussions to appoint a
new importer with the ability to realise the brand's potential in what remains
the largest imported vodka market in the world.

The Babco brands, after early promise, did not perform adequately and we have
reviewed the strategy for these. Major listings for the Mickey Finn's range
have, however, been agreed since the year end and this should lead to a better
return in the current financial year.

At the half year interim report I informed you that a production problem in
respect of one Babco product had arisen and that we had submitted a claim to our
supplier in respect of stocks held. Our claim has now been agreed and we are
hopeful of making a full recovery but since this cannot yet be certain we deemed
it prudent to make a full provision for our present exposure until the final
outcome is clearer.

Apart from this exceptional stock claim provision, marketing and administration
expenses were reduced by approximately one third. This is partly due to our
constant monitoring of overhead expenditure and the fact that we have moved some
of the burden of advertising and promotion cost to our importers in exchange for
longer contracts tied to sales volume success.

The benefit of all the above has resulted in a halving of our operating loss.
Since our overheads include amortisation of brand assets which have no effect on
our cash utilisation, shareholders will see that the company is making real
progress towards our initial target of breakeven. Sales for April and May have
been satisfactory and we are confident that further progress will be made in the
year ahead.

At the forthcoming Annual General Meeting the Board is seeking renewal of your
approval for resolutions relating to authority to issue further shares. Whilst,
once again, no plans are presently contemplated, the Board seeks the flexibility
to take opportunities that may arise by the issue a limited number of shares for
cash and for non cash consideration.

David Wheatley retires as Finance Director at this AGM. A founding director and
shareholder in the company, David was instrumental in helping to guide the
company to flotation and his skill, commitment and diligence have contributed
considerably to our achievements. I know that members will join me in wishing
him well and thanking him for his excellent service. He has agreed to remain on
the Board as a non-executive director where his contribution will continue to be
of value.

We are pleased to announce that a new Finance Director is to be appointed and
will take up his duties in August. He is Mr William Phillips MA, CA, formerly
Managing Director of Macallan-Glenlivet plc. Mr Phillips' extensive experience
in the drinks trade and his impressive record in brand-building will, we are
confident, contribute greatly to our future.

The steady growth of the company is, as always, significantly due to the
excellence of our staff and management who, on your behalf, I thank most warmly
for their loyalty and hard work in a year of real progress.



Allan Shiach

10 June 2003



Consolidated Profit and Loss Account

For the year ended 31 March 2003
                                                                                          2003             2002
                                                                                         £'000            £'000
Turnover                                                                                 1,509            1,145
Cost of sales                                                                            (944)            (792)
Gross profit                                                                               565              353
Marketing and administrative expenses                                                  (1,032)          (1,605)
Exceptional item - stock claim provision                                                 (149)                -
Total marketing and administrative expenses                                            (1,181)          (1,605)
Operating loss                                                                           (616)          (1,252)
Bank interest receivable                                                                    35               97
Loss on ordinary activities before taxation                                              (581)          (1,155)
Taxation                                                                                     -                -
Loss for financial year                                                                  (581)          (1,155)
Loss per share                                                                         (3.93p)          (7.94p)
Diluted loss per share                                                                 (3.93p)          (7.87p)

All of the group's operations are classed as continuing. There were no gains or
losses in either year other than those included in the above profit and loss
account.

Consolidated Balance Sheet

As at 31 March 2003
                                                                                          2003             2002
                                                                                         £'000            £'000
Fixed Assets
Intangible assets                                                                        1,196            1,344
Tangible assets                                                                             20               33
                                                                                         1,216            1,377
Current assets
Stock                                                                                       73              286
Debtors                                                                                    249              430
Cash at bank                                                                             1,022            1,236
                                                                                         1,344            1,952
Creditors: amounts falling due within one year                                           (329)            (517)
Net current assets                                                                       1,015            1,435
Net assets                                                                               2,231            2,812
Capital and reserves
Called up share capital                                                                    148              148
Share premium account                                                                    5,967            5,967
Profit and loss account                                                                (3,884)          (3,303)
Shareholders' funds equity                                                               2,231            2,812

The accounts were approved by the Board of Directors on 10 June 2003 and were
signed on their behalf by



David Wheatley

Director



Consolidated Cash Flow Statement

For the year ended 31 March 2003
                                                                                          2003              2002
                                                                                         £'000             £'000
Cash outflow from operating activities                                                   (241)           (1,529)
Returns on investments and servicing of finance
Interest received                                                                           35                97
Net cash inflow from returns on investments and servicing of finance                        35                97
Capital expenditure
Purchase of tangible fixed assets                                                            -              (33)
Expenditure relating to the registration of trademarks                                     (8)              (15)
Purchase of distribution rights                                                              -             (325)
Net cash outflow for capital expenditure                                                   (8)             (373)
Cash outflow before financing                                                            (214)           (1,805)
Decrease in cash in the year                                                             (214)           (1,805)

Notes:

1.     Turnover

Turnover relates to the group's principal activity.
                                                                                         Turnover by

                                                                                         destination

                                                                                         2003               2002
                                                                                        £'000              £'000
United Kingdom                                                                            901                708
Europe - EU                                                                                12                 31
USA                                                                                        58                 85
Duty Free                                                                                 176                129
Rest of World                                                                             362                192
                                                                                        1,509              1,145



2.     Loss per share

The loss per share is based upon a loss of £581,000 (2002: loss of £1,155,000)
and the weighted average number of shares ranking for dividend during the year
of 14,776,306 (2002: 14,551,306).

The fully-diluted loss per share is based upon the loss as disclosed above and
the weighted average number of shares ranking for dividend during the year of
14,776,306 (2002: 14,667,965) adjusted for the effects of all dilutive potential
shares.



Copies of this report have been sent to shareholders and are available at the
Company's Registered Office: 202 Fulham Road, London, SW10 9PJ.


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