Preliminary Results

Blavod Extreme Spirits PLC

3 June 2009

Preliminary Results

Blavod Extreme Spirits plc (the "Company"), the owner of the Blavod
Black Vodka brand, and wines and spirits distributor, announces its
unaudited preliminary results for the year ended 31 March 2009.

Financial highlights

* Profit before tax from continuing activities of £185k (2008: £155k
  loss)

* Revenue up 45% to £ 5.96m (2008: £4.09m)

* Balance sheet restructured giving a positive balance on the group
  P&L reserves of £89k

Commenting on the results, Richard Ambler, Managing Director, said:
"A good year: our first in profit which is a big turnaround from last
year.  We are optimistic about the future."

For further information, please contact:
Blavod Extreme Spirits plc                 Tel: [phone]
Richard Ambler

Brewin Dolphin Investment Banking      Tel: [phone]
Neil Baldwin



Chairman's statement

The Company had a good year, making an operating profit for the first
time.  Top line growth came from increased sales of all our major
brands, with a significant contribution from recently-added brands.
The brands owned or licensed by the Company grew by 30% of which
Blavod accounted for 7%.

The UK market was particularly strong for us. Our portfolio of
reasonably-priced brands, each with its own distinct personality,
appears to be well-positioned to survive and to grow in this
recession. Also, the additional brands not only add sales but also
give us access to retail outlets where we can introduce the wider
portfolio.

On the other hand, export markets have proven more difficult, and
more uncertain. Exports grew by 5% over the previous year; the US
market continues to retract as wholesalers and retailers reduce
inventory, and the duty free business, which had been doing well for
Blavod during the first six months of the year, fell off sharply in
recent months. However, distribution has improved, and export remains
a long-term opportunity.

Margins have been hurt by the effect of the sharp fall in the pound
on the cost of some imports, the creeping increases in production
costs and the great difficulty of raising prices.

As shareholders will recall, we took measures to cut costs
significantly between 2007 and 2008. We have maintained our overheads
at roughly the same level of 2008, despite the increased throughput.

We have been able to finance both the growth of the business and the
staged acquisition of the licence for Blackwoods of £600,000 plus
legal fees (the last tranche of £100,000 having been paid in April
2009) by an effective invoice discounting finance facility and tight
cash management.

The first two months of the new financial year have continued to show
growth, and the Directors are confident in the prospects of the
Company and the strength of the brands. In particular, we now have a
proven track record of success with new brands, and believe we are
well-placed to add a small number to our portfolio. As the
marketplace continues to change, further such opportunities should
arise.

However the new year does bring its own set of challenges, among
which are the following;

-- margin pressures are unlikely to be relieved in the foreseeable
future;

-- it is unclear when the US, Russian and Duty Free markets will
start to recover;

-- the organisation has been stretched  by an 80% increase in
turnover in two years and the addition of Blackwood's Gin and Jago's
Cream liqueur brands and the EPM brand portfolio. We will need to add
a small number of people in sales and the back office to cater for
this increased level of activity, and this will increase overheads;

-- the considerable growth of the business requires financing but
with the high quality of our debtors and a strong cash flow we
believe that this can be achieved without the need to call on
shareholders for further equity funds.

Amortisation of the Blavod Trade Mark

Historically the Company has included in its accounts annually a sum
for the amortisation of the Blavod name. £53,000 has been written off
in 2008/9. The Company intends to review this policy during the year.

Dividends

The Company does not propose to pay a dividend.

Change of Name

The Company proposes changing its name to Blavod Wines and Spirits
PLC - which will be proposed to shareholders at the forthcoming
Annual General Meeting. It is intended that the Company will retain
its AIM "ticker" of "BES" if this change is approved.

Annual General Meeting

This is expected to take place on 23 July 2009. Details will be
contained in the Notice of Meeting which will accompany the Report
and Accounts.

Consolidated income statement - Unaudited


                                                       2009      2008
                                               Note   £'000     £'000

Revenue                                               5,955     4,092
Cost of sales                                       (4,622)   (3,091)

Gross profit                                          1,333     1,001

Administrative costs                                (1,151)   (1,166)

Operating profit/(loss)                                 182     (165)

Finance income                                            3        10
Finance income                                            3        10

Profit/(loss)before tax from continuing
operations                                              185     (155)
Income tax expense                                        -         -

Profit/(loss) for the year from continuing
operations                                              185     (155)

Profit/(loss) from discontinued operations                -     1,238

Profit for the year                                     185     1,083


Earnings per share:

From continuing operations
Basic (pence per share)                         2      0.21    (0.20)
Diluted (pence per share)                       2      0.21    (0.20)

From total profit/(loss)
Basic (pence per share)                         2      0.21      1.40
Diluted (pence per share)                       2      0.21      1.40




Consolidated statement of recognised income and expense - unaudited


                                                2009    2008
                                               £'000   £'000
Profit for the year                              185   1,083
Total recognised income and expense for year     185   1,083

Consolidated balance sheet - Unaudited


Consolidated Balance Sheet
                                                     2009       2008
                                                    £'000      £'000

ASSETS

Non-current assets
Property, plant and equipment                          10          1
Intangible assets                                   1,259        615
                                                    1,269        616

Current assets
Inventories                                           452        220
Trade and other receivables                         1,724      1,057
Cash and cash equivalents                              52        502

Total current assets                                2,228      1,779
Total assets                                        3,497      2,395


LIABILITIES

Current liabilities
Trade and other payables                            1,084        929
Finance facility liability                            745          -
                                                    1,829        929
Non current liabilities

Total liabilities                                   1,829        929

Net assets                                          1,668      1,466


EQUITY

Equity attributable to equity holders of the parent
Share capital                                         878        878
Share premium account                                   -     18,489
Shares to be issued                                   701        682
Profit and loss account                                89   (18,583)
Total equity                                        1,668      1,466





Consolidated cash flow - Unaudited


                                                      2009      2008
                                                     £'000     £'000
Cashflows from operating activities
Profit / (loss) after taxation                         185     1,083
Adjustments for :
 - depreciation                                          3        32
 - amortisation                                         60        54
 - share-based payment                                  19        27
 - net foreign exchange gain / (loss)                 (18)      (66)
 - disposal of US operations                             -   (2,274)
 - finance income / (expense)                          (3)      (10)

                                                       246   (1,154)

Movements in working capital
 - decrease / (increase) in inventories              (232)     1,523
 - decrease / (increase) in trade receivables        (667)       524
 - increase / (decrease) in trade payables              65   (1,335)

Cash used by operations                              (834)       712

Finance expense                                          -      (79)

Net cash used in operating activities                (588)     (521)

Cash flows from investing activities
 - interest received                                     3        10
 - proceeds from sale of subsidiary & associate          -       220
 - purchase of PPE                                    (13)         -
 - expenditure relating to trade mark registration   (597)       (3)

Net cash used in investing activities                (607)       227

Cash flows from financing activities
 - proceeds from issue of share capital                  -       395
 - net cash received from finance facility             745         -

Net cash received from financing activities            745       395

Net increase/(decrease) in cash and cash equivalents (450)       101

Cash & cash equivalents at start of year               502       401

Cash & cash equivalents at end of year                  52       502




1        Basis of preparation

The financial  information  set out  above  does not  constitute  the
Company's statutory accounts within the meaning of section 240 of the
Companies Act 1985.  The 2009 figures are based on unaudited accounts
for the year ended 31 March 2009.

The unaudited preliminary announcement has been prepared on the basis
of the accounting policies set out in the Group's statutory  accounts
for 2008.

The 2008 comparatives  are derived  from the  statutory accounts  for
2008 which  have been  delivered to  the Registrar  of Companies  and
received an unqualified audit report and did not contain a  statement
under the Companies Act 1985, s237(2) or (3).

2    Earnings per share

The calculation  of the  basic earnings  per share  is based  on  the
earnings  attributable  to  ordinary  shareholders  divided  by   the
weighted average number of shares in issue during the year.
The diluted  earnings/(loss)  per share  is  identical to  the  basic
earnings/(loss) per share  as the  exercise of  warrants and  options
would be anti-dilutive as the market value of shares is less than the
exercise price of the warrants and options granted.
Reconciliations of the earnings and weighted average number of shares
used in the calculations are set out below.

                                                    2009         2008
Continuing operations
Profit/(loss)   attributable   to    ordinary        185        (155)
shareholders (£'000)
Weighted average number of shares (used for
basic earnings per share)                     87,758,508   77,405,809
Basic and diluted  earnings/(loss) per  share       0.21       (0.20)
(pence)


Discontinued operations
Profit attributable to ordinary  shareholders          -        1,238
(£'000)
Weighted average number of shares (used for
basic earnings per share)                     87,758,508   77,405,809
Basic and diluted  earnings/(loss) per  share          -         1.60
(pence)

Total operations
Profit attributable to ordinary  shareholders        185        1,083
(£'000)
Weighted average number of shares (used for
basic earnings per share)                     87,758,508   77,405,809
Basic and diluted  earnings/(loss) per  share       0.21         1.40
(pence)


3.  Annual report

Copies of the published accounts of the Company will be sent to all
shareholders on or around 18 June 2009 and will be available from
that date from the offices of Brewin Dolphin, 34 Lisbon Street,
Leeds, LS1 4LX and will be located on:


http://www.blavodextreme.com/investors/accounts.htm

ENDS

---END OF MESSAGE---




This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.