Half-yearly report

Blavod Wines & Spirits PLC (the 'Company')
11 December 2009
Interim Results for the six months to 30 September 2009
Blavod Wines & Spirits  PLC (AIM: BES), the  owner and licencee of  a
number of spirits brands including Blavod Black Vodka and Blackwood's
Gin and Vodka worldwide, and  a distributor  of a  number of  branded
spirits and wines in  the UK, announces its  interim results for  the
six months to 30 September 2009.
Chairman's Statement
Blavod Wines  and Spirits  continued to  grow sales  strongly in  the
first half of  the year, March  to September 2009,  but profits  were
held back  the  by  poor  perfomance of  Blavod  Black  Vodka  and  a
combination of  higher overheads  and higher  interest  charges. Case
sales grew by 35 % over previous year, and sales net of excise  taxes
grew by 58% (from £2.2m to  £3.5m) reflecting the addition of  higher
value brands to the portfolio.
However Blavod Black Vodka, which generates among the highest margins
on sales, suffered from continuing volume weakness in several  export
markets. Sales were down in Eastern Europe and Duty Free, and through
lost distribution  in some  UK retail  outlets. Blavod  volumes  also
suffered as a result of the  Company's policy of great prudence  over
credit, which led us to forfeit some  orders overseas and in the  UK.
On the other hand the Company has not been caught by recent  failures
in the industry.
Overheads increased as a  result of added  sales people, as  planned,
who helped to drive sales. There were also a number of  non-recurring
costs connected with recruitment and business expansion and  spending
behind brands was also increased.
Interest charges also rose  as a  result of  financing the  increased
growth.
Results from continuing  operations showed  a net  profit of  £43,000
against £43  000  last  year  before  costs  of £23,000  relating  to
discontinued business (Blavod USA).
Outlook
The  Board  is  optimistic   for  the  second   half  of  the   year,
traditionally the larger  in sales and  profit terms, in  spite of  a
trading environment which continues to be difficult and uncertain.
Blavod Black Vodka  export sales have  improved particularly in  Duty
Free, and we are fighting to regain distribution in the UK in the new
year.
The expanded  portfolio  has  been successfully  integrated  and  the
Bruichladdich range  in particular  is proving  to be  a  significant
contributor.
Financing of future sales growth is  in place since the £0.4  million
convertible loan was arranged in October.
Costs are  not  expected  to rise  further  as  we now  have  a  full
complement of sales people.
For the  full year  to 31  March  2010 the  Board expects  to  report
results  significantly  ahead  of  last  year.  However,  given   the
uncertainties and challenges set out above in relation to the  second
half of the year at present  the Board expects the full year  results
to be slightly below market expectations.
Colin Campbell
Non-executive Chairman

For further information, please contact:
Blavod Wines & Spirits plc
Richard                       Ambler                        (Managing
Director)                                      0207 352 2096
Brewin Dolphin (Nominated Adviser)
Neil                                                     Baldwin/Adam
Rudd                                                        0845  270
8600


Condensed consolidated Interim income
statement
                                  Six Months   Six Months
                                    ended        ended     Year ended
                                 30 September 30 September  31 March
                                     2009         2009        2009
                                  Un-audited   Un-audited   Audited
                                    £'000        £'000       £'000

Profit & Loss
Revenue                             4,007        2,473       5,955
Cost of sales                      (3,233)      (1,837)     (4,622)
Gross Profit                         774          636        1,333
Administrative costs                (731)        (583)      (1,151)
Profit before tax from
continuing operations                 43           53         182
Finance (expense)/income              0           (10)         3
Profit before tax continuing
operations                            43           43         185
(Loss)/Profit from discontinuing
operations                           (23)          0            0
Profit after tax                      21           43         185

Earnings per share:
From continuing operations

Basic (pence per share)              0.05         0.05        0.21

Diluted (pence per share)            0.05         0.05        0.21




Condensed consolidated interim balance sheet
                                      As at        As at      As at
                                  30 September  30 September 31 March
                                      2009          2008       2009
                                   Un-audited    Un-audited  Audited
                                      £'000        £'000      £'000

ASSETS
Non current assets
Investments                             0            0          0
Tangible Fixed Assets                  20            6          12
Intangible Fixed Assets               1,281        1,066      1,259
Total non current assets              1,301        1,072      1,271

Current Assets
Cash                                   85            63         52
Trade Debtors                         2,291        1,396      1,724
Stock                                  384          288        452
Prepayments                             0            0           0
Total current assets                  2,760        1,747      2,228
Total assets                          4,061        2,819      3,499

LIABILITIES
Current Liabilities
Short Term Loan                      (1,306)         0        (745)
Trade Creditors                      (1,064)      (1,310)    (1,084)
Total current liabilities            (2,370)      (1,310)    (1,829)
Total liabilities                    (2,370)      (1,310)    (1,829)

Net Assets                            1,691        1,509      1,670


EQUITY
Equity attributable to equity
holders of the parent
Share Capital                         (878)        (878)      (878)
Share premium                           0         (18,489)      0
Shares to be issued                   (701)         (96)      (701)
Profit & Loss reserve                 (112)        17,954      (91)

Total equity                         (1,691)      (1,509)    (1,670)


Condensed consolidated interim cash flow statement

                                  Six months   Six months
                                    ended        ended     Year ended
                                 30 September 30 September  31 March
Cashflows                            2009         2008        2009
                                  Un-audited   Un-audited   Audited
Cashflows from operating
activities
Profit before tax                     21           43         185
Adjustments for:
Depreciation                          2            0           3
Amortisation                          25           27          53
Share based payment                   0                        19
Net foreign exchange gain/loss        2            9          (11)
Net finance costs/income              0                       (3)
                                      50           79         246

Movements in working capital
(Increase)/Decrease in
inventories                           68          (68)       (232)
(Increase)/Decrease in trade
receivables                         (567)        (339)       (667)
Increase/(Decrease) in trade
payables                             (20)         381          66
Interest paid                         0           (12)         0
Net cash used in operating
activities                          (469)          41        (587)


Cashflows from investing
activities
Interest paid/(received)              0            2           3
Purchase of property plant  &
equipment                            (12)         (5)         (14)
Expenditure relating to the
acquisition and registration of      (47)        (478)       (597)
licences and trademarks
Net cash used in investing
activities                           (59)        (481)       (608)

Cashflows from financing
activities
Net cash received from finance
facilitiy                            411           0          745
Net cash received from directors
loan                                 150           0           0
Net cash from financing
activities                           561           0          745


Net (decrease)/increase in cash       33         (440)       (450)
and cash equivalents
Cash & cash equivalents at the        52          502         502
beginning of the period
Effect of exchange rates on
balance of cash held in foreign       0            1           0
currencies
Cash & cash equivalents at the        85           63          52
end of the period

Notes:
1. Basis  of   preparation: un-audited,   but  in   accordance   with
the Group's accounting policies as declared as at 31 March 2009
2. Availability of interim statement
Copies of this interim statement  will be available from  the Group's
head office at 202 Fulham Road, London, SW10 9PJ.
In     addition      they      are available      on      the Group's
website: www.blavodwinesandspirits.com

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