Half-yearly report

Blavod Wines and Spirits plc

5th December 2011

Interim Results for the six months ended 30 September 2011.

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 30th September this year.

Trading

Gross sales net of duty of £2.66 million (2010: £3.99 million) and gross margin
of £410,000 (2010: £763,000) both down due to the loss of the Cockspur rum and
DBR wines contracts together with the loss of one key grocery account for a
major agency brand. All of which were announced in our interim results statement
this time last year.

Margins also declined due to new packaging costs for Blavod Black Vodka and an
increased percentage of total Company sales coming from the UK.

Spend behind our owned brands increased by 40% to £116,000 and overheads were
down by 1% to £565,000.
.
This resulted in an EBITDA loss of £340,000 versus £49,000 positive in 2010 and
a loss of £393,000 (2010: loss £12,000).

Whilst these results are disappointing there are positives including owned brand
revenues net of duty, mainly Blavod Black Vodka and Blackwood's Gin, up by 7%.
On a like for like basis, combined net revenue of all other agency brands
improved by 13%. Distribution has increased across all continuing brands.

We lowered our stock holding in key export markets and fully provided for out of
date stock from our system, all of which is included in these results.

On the cost side we reduced staff costs by 13% whilst increasing our sales
efforts and restored our bad debt provision to a more prudent level. We continue
to be cautious in extending credit. As previously, our bad debt provision is
included in our overhead numbers.

Outlook

The UK market remains challenging with customers across all trade sectors
seeking more support to promote brands as consumer spend tightens.
Differentiated premium brands and outlets appear to be bucking overall market
trends and showing strong growth.

Exports continue to offer healthier margins and we plan to open three to four
new markets in the coming six months.

In a separate RNS issued today the Company announces an agreement with Waldemar
Behn GmbH & Co. for Blavod Black Vodka production, export sales and marketing
coverage for most of continental and eastern Europe.

This is aimed at accelerating growth in new and existing European export
markets; providing sales reach where we have no coverage currently, increasing
our marketing investment in brand building through associated production and
logistic savings. It will take time to build these markets. We will now seek to
accelerate our sales growth across other key continents.

We have also taken the opportunity to review our overall agency brand portfolio
and to ensure we can meet the growth aspirations of brand owners by providing
maximum levels of focus in the right areas with target customers. Therefore, by
mutual agreement, a number of smaller brands are being transferred to a close
partner company with effect from January 2012. These brands are in relatively
early incubator stages of development and therefore have no material impact on
our sales or profits.

The overall effect of these changes will be to simplify our business and improve
our service to both brand owners and customers alike.

Our new rum product is now ready for market with another new brand to launch in
the spring of 2012.

Financing

The Company has managed its working capital effectively since the July trading
update.  With the first six month's trading complete the Company is in active
discussion with current and prospective investors with a view to securing
additional capital to meet medium term cash requirements as we move the Company
forward.

Full year outlook

The Directors do not see a profit improvement for the full year although the
trend is expected to be more positive as the changes and improvements we are
making begin to take effect.

Board changes

As previously announced, Managing Director Richard Ambler departed from the
Company on October 28th 2011.

I joined the Board as Non-Executive Director mid 2010 becoming Non-Executive
Chairman earlier this year. I have now assumed the role of Executive Chairman
and with it full time day to day control of the business until a replacement is
found for the position of Managing Director.

For further information, please contact:

Blavod Wines and Spirits plc                           Tel: [phone]
Don Goulding
Executive Chairman

Brewin Dolphin Corporate Advisory & Broking     Tel: [phone]
Neil Baldwin


Blavod Wines and Spirits Plc - Preliminary Half Year
Results

Condensed consolidated comprehensive interim income
statement

                                         +---------------+------------+--------+
                                         |  Six months   | Six months |  Year  |
                                         |               |            |        |
                                         |     ended     |   ended    | ended  |
                                         |               |            |        |
                                         | 30 September  |30 September|31 March|
                                         |               |            |        |
                                         |     2011      |    2010    |  2011  |
                                         |               |            |        |
                                         |  Un-audited   | Un-audited |Audited |
                                         |               |            |        |
                                         |     £,000     |   £,000    | £,000  |
                                         |               |            |        |
Profit & Loss                            |               |            |        |
                                         |               |            |        |
Revenue                                  |     2,657     |   3,986    | 7,216  |
                                         |               |            |        |
Cost of sales                            |    (2,247)    |  (3,223)   |(5,810) |
                                         +---------------+------------+--------+
Gross Profit                             |      410      |    763     | 1,406  |
                                         |               |            |        |
Advertising and promotional costs        |     (185)     |   (135)    | (336)  |
                                         |               |            |        |
Other administrative expenses            |     (565)     |   (579)    |(1,120) |
                                         +---------------+------------+--------+
Total administrative expenses            |     (750)     |   (714)    |(1,456) |
                                         |               |            |        |
EBITDA                                   |     (340)     |     49     |  (50)  |
                                         |               |            |        |
Depreciation & amortisation              |      (4)      |    (3)     |  (6)   |
                                         +---------------+------------+--------+
Operating Profit                         |     (344)     |     46     |  (56)  |
                                         |               |            |        |
Finance income                           |       -       |     -      |   13   |
                                         |               |            |        |
Finance expense                          |     (49)      |    (58)    | (130)  |
                                         +---------------+------------+--------+
(Loss) before tax from continuing        |               |            |        |
operations                               |     (393)     |    (12)    | (173)  |
                                         |               |            |        |
Income tax                               |       -       |     -      |        |
                                         |               |            |        |
(Loss) after tax from continuing         |               |            |        |
operations                               |     (393)     |    (12)    | (173)  |
                                         +---------------+------------+--------+


Earnings per share:

From continuing operations

Basic (pence per share)                       (0.45)         (0.01)     (0.20)

Diluted (pence per share)                     (0.45)         (0.01)     (0.20)






Condensed consolidated interim
balance sheet
                               +------------+------------+---------------------+
                               |   As at    |   As at    |        As at        |
                               |            |            |                     |
                               |30 September|30 September|      31 March       |
                               |            |            |                     |
                               |    2011    |    2010    |        2011         |
                               |            |            |                     |
                               | Un-audited | Un-audited |       Audited       |
                               |            |            |                     |
                               |   £,000    |   £,000    |        £,000        |
                               |            |            |                     |
                               |            |            |                     |
                               |            |            |                     |
                               |            |            |                     |
                               |            |            |                     |
ASSETS                         |            |            |                     |
                               |            |            |                     |
Non current assets             |            |            |                     |
                               |            |            |                     |
Property, plant and equipment  |     25     |     27     |         29          |
                               |            |            |                     |
Intangible fixed assets        |   1,411    |   1,366    |        1,380        |
                               +------------+------------+---------------------+
Total non current assets       |   1,436    |   1,393    |        1,409        |
                               |            |            |                     |
                               |            |            |                     |
                               |            |            |                     |
Current assets                 |            |            |                     |
                               |            |            |                     |
Inventories                    |    492     |    702     |         583         |
                               |            |            |                     |
Trade and other receivables    |   1,335    |   1,978    |        1,488        |
                               |            |            |                     |
Cash and cash equivalents      |     -      |    104     |         36          |
                               +------------+------------+---------------------+
Total current assets           |   1,827    |   2,784    |        2,107        |
                               +------------+------------+---------------------+
Total assets                   |   3,263    |   4,177    |        3,516        |
                               +------------+------------+---------------------+
                               |            |            |                     |
                               |            |            |                     |
LIABILITIES                    |            |            |                     |
                               |            |            |                     |
Non current liabilities        |            |            |                     |
                               |            |            |                     |
Borrowings                     |   (350)    |   (343)    |        (350)        |
                               |            |            |                     |
Derivative                     |    (48)    |    (54)    |        (48)         |
                               +------------+------------+---------------------+
Total non current liabilities  |   (398)    |   (397)    |        (398)        |
                               |            |            |                     |
                               |            |            |                     |
                               |            |            |                     |
Current Liabilities            |            |            |                     |
                               |            |            |                     |
                               |            |            |                     |
                               |            |            |                     |
Bank and other borrowings      |    (6)     |     -      |          -          |
                               |            |            |                     |
Trade & other payables         |  (1,052)   |  (1,071)   |        (923)        |
                               |            |            |                     |
Finance facility liability     |   (739)    |  (1,105)   |        (740)        |
                               +------------+------------+---------------------+
Total current liabilities      |  (1,797)   |  (2,176)   |       (1,663)       |
                               +------------+------------+---------------------+
Total liabilities              |  (2,195)   |  (2,573)   |       (2,061)       |
                               +------------+------------+---------------------+
                               |            |            |                     |
                               +------------+------------+---------------------+
Net Assets                     |   1,068    |   1,604    |        1,455        |
                               +------------+------------+---------------------+
                               |            |            |                     |
                               |            |            |                     |
EQUITY                         |            |            |                     |
                               |            |            |                     |
Equity attributable to equity  |            |            |                     |
holders of the parent          |            |            |                     |
                               |            |            |                     |
Share capital                  |   (878)    |   (878)    |        (878)        |
                               |            |            |                     |
Shares to be issued            |    (57)    |   (717)    |        (51)         |
                               |            |            |                     |
Retained earnings              |   (133)    |    (9)     |        (526)        |
                               +------------+------------+---------------------+
Total equity                   |  (1,068)   |  (1,604)   |       (1,455)       |
                               +------------+------------+---------------------+
                               |            |            |                     |
                               +------------+------------+---------------------+


Condensed consolidated interim
cash flow statement
                               +------------+------------+---------------------+
                               | Six months | Six months |     Six months      |
                               |            |            |                     |
                               |   ended    |   ended    |        ended        |
                               |            |            |                     |
                               |30 September|30 September|    30 September     |
                               |            |            |                     |
                               |    2010    |    2010    |        2010         |
                               |            |            |                     |
Cashflows                      | Un-audited | Un-audited |       Audited       |
                               |            |            |                     |
Cashflows from operating       |            |            |                     |
activities                     |   £,000    |   £,000    |        £,000        |
                               |            |            |                     |
                               |            |            |                     |
                               |            |            |                     |
Operating Profit               |   (344)    |     46     |        (56)         |
                               |            |            |                     |
Adjustments for:               |            |            |                     |
                               |            |            |                     |
Depreciation                   |     4      |     3      |          6          |
                               |            |            |                     |
Share based payment            |     6      |     -      |          -          |
                               |            |            |                     |
Net foreign exchange gain/loss |     -      |     -      |         12          |
                               +------------+------------+---------------------+
                               |   (334)    |     49     |        (38)         |
                               |            |            |                     |
                               |            |            |                     |
                               |            |            |                     |
Movements in working capital   |            |            |                     |
                               |            |            |                     |
(Increase)/Decrease in         |            |            |                     |
inventories                    |     91     |    (90)    |         30          |
                               |            |            |                     |
(Increase)/Decrease in accounts|            |            |                     |
receivables                    |    153     |   (151)    |         339         |
                               |            |            |                     |
Increase/(Decrease) in trade   |            |            |                     |
payables                       |    129     |     97     |        (51)         |
                               +------------+------------+---------------------+
Cash generated by/ (used by)   |            |            |                     |
operations                     |    373     |   (144)    |         318         |
                               |            |            |                     |
Finance Expense                |    (49)    |    (58)    |        (117)        |
                               |            |            |                     |
Net cash (used in) operating   |            |            |                     |
activities                     |    (10)    |   (153)    |         163         |
                               |            |            |                     |
                               |            |            |                     |
                               |            |            |                     |
Cashflows from investing       |            |            |                     |
activities                     |            |            |                     |
                               |            |            |                     |
Purchase of property plant &   |            |            |                     |
equipment                      |     -      |    (6)     |        (11)         |
                               |            |            |                     |
Expenditure relating to the    |            |            |                     |
acquisition and registration of|            |            |                     |
licences and trademarks        |    (31)    |    (55)    |        (69)         |
                               +------------+------------+---------------------+
                               |            |            |                     |
                               |            |            |                     |
Net cash (used in) investing   |            |            |                     |
activities                     |    (31)    |    (61)    |        (80)         |
                               |            |            |                     |
                               |            |            |                     |
                               |            |            |                     |
Cashflows from financing       |            |            |                     |
activities                     |            |            |                     |
                               |            |            |                     |
Net cash received from finance |            |            |                     |
facility                       |    (1)     |    200     |        (165)        |
                               +------------+------------+---------------------+
Net cash from financing        |            |            |                     |
activities                     |    (1)     |    200     |        (165)        |
                               |            |            |                     |
                               |            |            |                     |
                               |            |            |                     |
                               |            |            |                     |
                               |            |            |                     |
Net (decrease) in cash and cash|            |            |                     |
equivalents                    |    (42)    |    (14)    |        (82)         |
                               |            |            |                     |
Cash & cash equivalents at the |            |            |                     |
beginning of the period        |     36     |    118     |         118         |
                               |            |            |                     |
                               |            |            |                     |
                               +------------+------------+---------------------+
Cash & cash equivalents at the |            |            |                     |
end of the period              |    (6)     |    104     |         36          |
                               +------------+------------+---------------------+


Notes:



 1. Basis of Preparation - This interim report was approved by the Board on
    5th December 2011.  These consolidated financial statements are for the six
    months ended 30 September 2011.  They have been prepared in accordance with
    International Finance Reporting Standards (IFRS) and International
    Financial Reporting Interpretation Committee (IFRIC) interpretations as at
    30 September 2011, 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 2011.  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 2011 were approved on 10 June 2011.  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. 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 and also on www.blavodwinesandspirits.com.









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Source: Blavod Wines & Spirits plc via Thomson Reuters ONE

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