Final Results

Blavod Black Vodka PLC
7 September 2001


                            BLAVOD BLACK VODKA PLC


            Preliminary Results for the year ended 31st March 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.


*      Loss of £1.1 million (2000: £1.0 million) in line with expectations

*      Gross margin improved

*      UK sales increase 15%

*      New distribution contract for Brazil, other territories under
       negotiation

*      Agreement to import and distribute Domaine Barons de Rothschild wines

*      Increase in promotion and marketing following flotation



Richard Ambler, Chief Executive, commented:



'Gross margins improved considerably due to greater efficiencies of production
and sustainable price increases, although the final quarter sales were
unexciting having been affected by a more pronounced 'Christmas hangover'
effect than usual.  Nevertheless sales volumes at 15% higher in the crucial UK
market - even without budget support for promotion and marketing - were
especially pleasing.



'In May of this year we assumed responsibility for the import and distribution
of Domaine Barons de Rothschild wines in the UK.  The profit on these sales
provides a useful contribution to our overheads as well as enhancing our
reputation to Blavod customers.



'Whilst we cannot expect to match the margins achieved by multinational vodka
suppliers we look for continued improvement as sales of Blavod grow.'



7 September 2001


ENQUIRIES:

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

College Hill                                                 Tel: [phone]
Michael  Padley
Clare Warren



Chairman's Statement



The company's admission to AIM took place just one month prior to the end of
the financial period and while these accounts do not reflect any meaningful
benefit from the additional capital raised in that exercise it is nonetheless
pleasing to be able to report that the sales value of Blavod increased over
the previous period.



Gross margins improved considerably due to greater efficiencies of production
and sustainable price increases, although the final quarter sales were
unexciting having been affected by a more pronounced 'Christmas hangover'
effect than usual.  Nevertheless sales volumes at15% higher in the crucial UK
market - even without budget support  for promotion and marketing - were
especially pleasing.  Additional administration expenses were incurred in the
period principally as a consequence of the strengthening of the sales and
marketing team to grow the Blavod brand.  At this stage in the development of
the company, the increase in trading loss is well within the range of
management expectations.



Following admission in February, the new Board including a new Chairman became
established, new senior managers joined the company and it will be plain that
we expect to be moving the brand forward in years to come.  Already, new
customers have been attracted, particularly in the 'on trade,' and this should
benefit the all-important last quarter of 2001.  In the UK a focussed
advertising and promotional programme has been agreed with most of the major
supermarket chains leading up to the Christmas period.



Having concluded a trading agreement with a substantial distributor in Brazil
- which, excluding local Russian volumes, is the third largest vodka market in
the world - our first consignment was dispatched last month.  Sales and
distribution contracts are also being negotiated for a number of other
countries. In the vital US market, a careful and thorough strategic review has
been undertaken.  Management, having successfully addressed a legacy of a lack
of sufficient promotional funding, is now in detailed discussions with
potential marketing and distribution partners.



In May of this year we assumed responsibility for the import and distribution
of Domaine Barons de Rothschild wines ('DBR') in the UK.  The profit on these
sales provides a useful contribution to our overheads as well as enhancing our
reputation to Blavod customers by supplementing the premium vodka brand with
the supply of such internationally renowned wines.



We have been approached by other owners of premium brands in the sector and
are discussing collaboration for their UK distribution.  The additional
revenue from this would allow us to further augment our own sales volumes with
an improved sales infrastructure so as to bring forward the company's break
even point.



The world consumption of vodka is authoritatively estimated at 350 million
cases.  The success of recent 'niche' brands and the consumer response to
Blavod gives us confidence that we might, with your support and careful good
management, achieve a small but meaningful share of that market.  The UK
market was difficult during the first part of this year and every effort is
being made to procure an upturn, using carefully planned promotional,
advertising and marketing strategies previously denied to us by lack of funds.
Vodka sales are traditionally higher in the second half of a  calendar year and 
whilst we cannot expect to match the margins achieved by multinational vodka 
suppliers we look for improvements as sales of Blavod grow.



I believe we now have the right team to further grow and develop your company.
  Certainly the experience and professional skills to produce, manage and
market a premium quality spirit are abundant.   On your behalf, I wish to
express my warmest gratitude to all staff for their loyalty, enthusiasm and
diligence which is such a promising and notable feature of the company.




Allan Shiach





Consolidated Profit and Loss Account
For the year ended 31 March 2001


                                                                5 March 1999 to
                                                     2001         31 March 2000
                                          Notes    £000's                £000's

Turnover                                    1        835                   776
Cost of sales                                       (565)                 (638)

Gross profit                                         270                   138
Administrative expenses                           (1,378)               (1,122)

Operating loss                              2     (1,108)                 (984)
Bank interest receivable                              19                     9
Interest payable and similar charges                 (43)                  (41)

Loss on ordinary activities before                (1,132)               (1,016)
taxation
Taxation                                               -                     -

Loss for the financial year                       (1,132)               (1,016)

Loss per share                              4    (14.43p)              (14.01p)
Diluted loss per share                      4    (13.13p)              (11.91p)



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



Consolidated Balance Sheet
As at 31 March 2001


                                                   Notes     2001          2000
                                                           £000's        £000's

Fixed assets
Intangible assets                                            915           922
Tangible assets                                               10             9
                                                             925           931

Current assets
Stock                                                         73            64
Debtors                                                      191           264
Cash at bank                                               3,041           155

                                                           3,305           483

Creditors: amounts falling due within one year              (455)         (999)

Net current assets/(liabilities)                           2,850          (516)

Total assets less current liabilities                      3,775           415
Creditors: amounts falling due after more than one             -          (155)
year

Net assets                                                 3,775           260

Capital and reserves
Called up share capital                                      143            36
Share premium account                                      5,780         1,240
Profit and loss account                                   (2,148)       (1,016)

Shareholders' funds                                        3,775           260



The accounts were approved by the Board of Directors on 6 September 2001 and
were signed on their behalf by




David Wheatley

Director




Consolidated Cash Flow Statement
For the year ended 31 March 2001


                                                     Notes    2001        2000
                                                            £000's      £000's

Cash outflow from operating activities                 2   (1,355)     (1,106)

Returns on investments and servicing of finance
Interest received                                              19           9
Interest paid                                                  (7)        (42)

Net cash inflow/(outflow) from returns on investments
and servicing of finance                                       12         (33)

Capital expenditure
Purchase of tangible fixed assets                              (5)         (4)
Expenditure relating to the registration of trademarks        (43)        (17)

Net cash outflow for capital expenditure                      (48)        (21)

Acquisition
Cash acquired with subsidiary                                   -          18

Cash outflow before financing                              (1,391)     (1,142)

Financing
Issue of ordinary share capital                             4,010       1,250
Cost of share issue                                          (463)          -
Investors' loans subsequently capitalised on Admission        900         150
Loan repayments                                              (161)       (112)

Net cash inflow from financing                              4,286       1,288


Increase in cash in the year                            3   2,895         146





Notes


1.                   Turnover


Turnover relates to the group's principal activity


                                                      Turnover by destination
                                                   2001                    2000
                                                  £'000                   £'000

United Kingdom                                      503                     374
Europe                                               41                      51
USA                                                 118                     156
Duty Free                                            72                     100
Rest of World                                       101                      95

                                                    835                     776



2.                   Reconciliation of operating loss to net cash outflow from
operating activities


                                                         2001              2000
                                                        £'000             £'000

Operating loss                                        (1,108)             (984)
Depreciation                                               4                 1
Amortisation                                              50                36
(Increase)/decrease in stocks                             (9)               33
Decrease in debtors                                       73               188
(Decrease) in creditors                                 (365)             (380)

Net cash outflow from operating activities            (1,355)           (1,106)





3.                   Reconciliation of net cash flow to movement in net funds


                                                               2001        2000
                                                              £'000       £'000

Increase in cash in the year                                 2,895         146
Cash inflow/(outflow) from net increase/decrease in            161         (38)
net funds

Change in debt resulting from cash flows                     3,056         108
Loans of acquired companies                                      -        (273)
Capitalisation of investors' loan                              150           -
Net debt at the beginning of the period                       (165)          -

Net funds/(debt) at the end of the period                    3,041        (165)





4.                   Loss per share



The loss per share is based upon a loss of £1,132,000 (2000:loss of £1,016,00)
and the weighted average number of shares ranking for dividend during the year
of 7,841,000 (2000: 7,250,000).



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
8,622,000 (2000: 8,525,000) 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.