Interim Results

Blavod Black Vodka PLC
14 December 2001



                            BLAVOD BLACK VODKA PLC


           Interim Results for the six months to 30 September 2001


Blavod Black Vodka plc, owns and sells Blavod, a premium vodka brand.  Blavod
is black in colour, neutral tasting and has already achieved sales success in
the UK, via links with distributors including leading supermarkets and off and
on-licence groups, and overseas. The Company joined The Alternative Investment
Market in February 2001.


O      Loss for the period £458,000 (2000H1: £436,000)

O      Babco brands fully integrated - early indications positive

O      Blavod volumes improved sharply in Q2

O      Initial shipments to Brazil promising, Duty Free continues to grow

O      In final stages of appointing new US importer

O      Increase in promotion and marketing spend



Alan Shiach, Chairman commented:



'The half year has been one of notably increased activity for the company.
The consolidation of our sales force with the Babco brands has already begun
to bear fruit, early signs for the growth of these brands are encouraging.



'Sales prospects for the year are, in the absence of unforeseen circumstances,
encouraging.  We believe we have finally laid the necessary groundwork for the
development of Blavod as a brand and have, at the same time, begun to address
the impact of overheads by the addition of interesting and potentially
valuable brands to our distribution portfolio in the UK.'



                                                              14 December 2001


ENQUIRIES:

Blavod Black Vodka plc                                       Tel: [phone]
Richard Ambler, Chief Executive

College Hill                                                 Tel: [phone]
Michael  Padley
Clare Warren



Chairman's Statement



The half year has been one of notably increased activity for the company.
Consolidation of our sales force with the Babco brands has already begun to
show benefit, as noted below, and besides our existing distribution of the
wines of Domaines Barons de Rothschild we have further enhanced our portfolio
with the addition of Royal Tokai, a premium dessert wine from Hungary.
Management have taken measures to develop our distribution strengths in the
UK.  Whilst it is too early to provide precise details, we are already
confident that case sales of Blavod for the first nine months will be higher
than last year.



Blavod sales in the final quarter to 31 March 2001 were, as already reported,
unexciting and remained static until the end of June.  Thereafter we
experienced positive change and volumes for the second quarter of the year
were higher than last year.  Marketing and advertising, both of which were
absent in the previous comparable period during the run-up to flotation, are
now beginning to bear fruit in the UK market.



Following the distribution agreement announced in October, we are now
marketing the Babco brands - AGWA, Mickey Finn, TJ's Rosas & Limas - alongside
Blavod.  Early signs for the growth of these brands are encouraging and in
addition to contributing to marketing and administration costs, these products
enhance the reputation of Blavod with our customers as a supplier of premium
drinks.



Initial shipments of Blavod to a promising market in Brazil have been
extremely encouraging although more time is needed before we can fully
evaluate this potential.  Duty Free sales, especially in Europe, have shown
steady growth and we are confident that this will continue.



Sales to the USA, whilst higher than last year, are still disappointing and we
believe this to be a consequence of enthusiastic over-stocking and lack of
sales support in earlier times.   We are taking action by appointing a new
importer and are in the final stages of concluding arrangements with a highly
respected US drinks group. When matters are definitively concluded, further
details will be announced.



Sales prospects for the year are, in the absence of unforeseen circumstances,
more encouraging.  We believe we have finally laid the necessary groundwork
for the development of Blavod as a brand and have, at the same time, begun to
address the impact of overheads by the addition of interesting and potentially
valuable brands to our distribution portfolio in the UK.


Allan Shiach
14 December 2001


Unaudited Profit and Loss Account
for the six months ended 30 September 2001


                                   Notes        Six months to 30        Year to
                                                   September           31 March
                                               2001          2000          2001
                                          Unaudited     Unaudited       Audited
                                              £ 000         £ 000         £ 000

Turnover                                       275           409           835
Cost of sales                                 (211)         (291)         (565)


Gross profit                                    64           118           270
Administrative expenses                       (587)         (553)       (1,378)


Operating loss                                (523)         (435)       (1,108)

Bank interest receivable                        65             3            19
Interest payable and similar                     -            (4)          (43)
charges

Loss on ordinary activities before            (458)         (436)       (1,132)
taxation

Taxation                                         -             -             -

Loss for the financial period        2        (458)         (436)       (1,132)


Loss per share                              (3.20p)       (6.01p)      (14.43p)
Diluted loss per share                      (3.14p)       (5.64p)      (13.13p)



There were no recognised gains or losses as defined in Financial Reporting
Standard No. 3 other than those above.

Unaudited Consolidated Balance Sheet as at 30 September 2001

                                                                        Year to 
                                       Six months to 30 September      31 March
                                                 2001        2000          2001
                                            Unaudited   Unaudited       Audited
                                                £ 000       £ 000         £ 000


Fixed assets
Intangible assets                                901         917           915
Tangible assets                                   25           7            10

                                                 926         924           925
Current assets
Stock                                             55          64            73
Debtors                                          277         147           191
Cash at bank                                   2,662         114         3,041

                                               2,994         325         3,305

Creditors: amounts falling due within           (603)     (1,295)         (455)
one year


Net current assets/(liabilities)               2,391        (970)        2,850


Total assets less current liabilities          3,317         (46)        3,775

Creditors: amounts falling due after
more than one year
                                                   -        (130)            -


Net assets/(liabilities)                       3,317        (176)        3,775

Capital and reserves
Called up share capital                          143          36           143
Share premium account                          5,780       1,240         5,780
Profit and loss account                       (2,606)     (1,452)       (2,148)


Shareholders' funds                            3,317        (176)        3,775




Unaudited Consolidated Cash Flow Statement
for the period ended 30 September 2001

                                                Six months to 30  Year to  31
                                                    September           March
                                                 2001        2000        2001
                                            Unaudited   Unaudited     Audited
                                                £ 000       £ 000       £ 000

Cash outflow from operating activities          (418)       (182)     (1,355)

Returns on investments and servicing of
finance
Interest received                                 65           2          19
Interest paid                                      -          (4)         (7)

Net cash inflow/(outflow) from returns on         65          (2)          12
investments and servicing of finance
                                                             
Capital expenditure
Purchase of tangible fixed assets                (16)        (18)         (5)
Expenditure relating to the registration of      (10)          -         (43)
trademarks


Net cash outflow for capital expenditure         (26)        (18)        (48)

Cash outflow before financing                   (379)       (202)     (1,391)

Financing

Issue of ordinary share capital                    -           -       4,000
Cost of share issue                                -           -        (463)
Investors' loans subsequently capitalised          -         150         900
on Admission
Loan repayments                                    -          (6)       (161)

Net cash inflow from financing                     -         144       4,286

(Decrease)/increase in cash in the period       (379)        (58)      2,895



Notes to the Financial Statements
for the six months ended 30 September 2001


1. Basis of preparation
   The financial information in this interim statement is prepared under the
   historical cost convention and in accordance with applicable accounting
   standards.  It does not constitute statutory accounts as defined in Section
   240 of the Companies Act 1985.  The financial information for the full
   preceding year is based on the statutory accounts for the year to 31 March
   2001.  Those accounts, upon which the auditors issued an unqualified
   opinion, have been delivered to the Registrar of Companies.


   The interim financial information has been prepared on the basis of the
   accounting policies set out in the Group's statutory accounts for the year
   ended 31 March 2001.


2. Loss per share
   The calculations of loss per share are based on a loss £458,000 (2000: £
   436,000), a basic weighted average of 14,326,000 shares in issue (2000:
   7,250,000 shares) and a diluted weighted average of 14,600,000 shares in
   issue (2000: 7,718,000 shares).  The calculations of earnings per share for
   the full year to 31 March 2001 are based on a loss of £1,132,000, a basic
   weighted average of 7,841,000 shares in issue and a diluted weighted average
   of 8,622,000 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.