Half-yearly report

Blavod Wines and Spirits plc ("the Company")

26 November 2010

Interim Results for the six months ended 30 September 2010.

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 30 September this year.

Trading

Gross  sales at £3.98 million (2009: £4.0  million) and gross margin at £763,000
(2009:  £775,000) were  broadly unchanged  from last  year. Spending  behind the
brands  and  overhead  charges  were  slightly  increased,  leading to EBITDA of
£49,000  (2009: £91,000) and a loss of  £12,000 against a profit of £45,000 last
year.

The  measures  announced  at  the  beginning  of  the  financial  year to regain
distribution,  improve margins and  reduce costs have  begun to take effect. The
Company  has experienced year on  year double digit growth  in case sales of its
own Brands and Blavod in its new packaging is back in a major supermarket chain.
On  the other  hand, price  increases have  led to  a major  agency brand losing
distribution in one large account.

As expected, volumes and margins of Cockspur rum fell away sharply following the
announcement  that this contract  was to be  ended, resulting in  a much reduced
contribution, even after compensation had been received.

For the second half of the year, export orders are strong; margins have now been
improved  across all  major brands;  overhead levels  have been  reduced and are
forecast  to be 7% lower in the second half than in the first; the new packaging
of  Blavod  has  reached  retail  shelves  and  is beginning to be exported to a
favourable  reception and the cash position  of the Company is satisfactory with
factoring facilities in place.

Longer  term, we  will build  on our  experience in  the dynamic rum segment, in
which  we more than doubled Cockspur sales  over 3 years, by introducing our own
brand  of rum in the  new year and we  plan to add a  small number of additional
brands to the portfolio.

Unfortunately   we  expect  the  Company's  involvement  in  wine  will  decline
significantly  in 2011/12 as Domaines Baron de  Rothschild (DBR) have decided to
consolidate their activities within other Rothschild entities.

Outlook

While  export is now improving strongly, the UK market remains uncertain for all
our  brands, both for the obvious economic  reasons and because a large share of
volume  is reliant on a small number of large customers.  We continue to be very
cautious  in extending credit. Given these uncertainties the directors do not at
this time foresee a profit improvement for the full year over 2009/10.

Board

The  Company strengthened its board when Mr  Don Goulding and Mr Mark Quinn were
elected  at  the  AGM  in  July.   Early  in 2011 Mr Lawrence Banks and Mr Colin
Campbell  will  withdraw  from  the  Board.  Mr  Don Goulding will then take the
position  of Executive Chairman, the enhanced title reflecting the extra time he
will  spend and deeper involvement in the strategic direction of the Company. Mr
Mark  Quinn will be head of the Audit Committee. A further announcement of these
changes will be made when they take effect.


For further information, please contact:

Blavod Wines and Spirits plc                           Tel: [phone]
Richard Ambler

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


                                 +------------+----------+---------------------+
Condensed consolidated           |            |          |                     |
comprehensive interim income     |            |          |                     |
statement                        | Six months |Six months|        Year         |
                                 |            |          |                     |
                                 |   ended    |  ended   |        ended        |
                                 +------------+----------+---------------------+
                                 |            |   30     |                     |
                                 |30 September|September |      31 March       |
                                 |            |          |                     |
                                 |    2010    |   2009   |        2010         |
                                 |            |          |                     |
                                 | Un-audited |Un-audited|       Audited       |
                                 |            |          |                     |
                                 |   £,000    |  £,000   |        £,000        |
                                 |            |          |                     |
Profit & Loss                    |            |          |                     |
                                 |            |          |                     |
Revenue                          |   3,986    |  4,007   |        8,316        |
                                 |            |          |                     |
Cost of sales                    |  (3,223)   | (3,233)  |       (6,745)       |
                                 +------------+----------+---------------------+
Gross Profit                     |    763     |   774    |        1,571        |
                                 |            |          |                     |
Advertising and promotional costs|   (135)    |   (98)   |        (268)        |
                                 |            |          |                     |
Non recurring costs              |     0      |   (23)   |        (21)         |
                                 |            |          |                     |
Other administrative expenses    |   (579)    |  (562)   |       (1,204)       |
                                 +------------+----------+---------------------+
Total administrative expenses    |   (714)    |  (683)   |        1,493        |
                                 |            |          |                     |
EBITDA                           |     49     |    91    |         78          |
                                 |            |          |                     |
Depreciation & amortisation      |    (3)     |   (2)    |         (6)         |
                                 +------------+----------+---------------------+
Operating Profit                 |     46     |    89    |         72          |
                                 |            |          |                     |
Finance income                   |     0      |    0     |         20          |
                                 |            |          |                     |
Finance expense                  |    (58)    |   (44)   |        (107)        |
                                 +------------+----------+---------------------+
(Loss)/profit before tax from    |            |          |                     |
continuing operations            |    (12)    |    45    |        (15)         |
                                 |            |          |                     |
Income tax                       |     0      |    0     |          0          |
                                 |            |          |                     |
(Loss)/profit before tax from    |            |          |                     |
continuing operations            |    (12)    |    45    |        (15)         |
                                 +------------+----------+---------------------+


Earnings per share:

From continuing operations

Basic (pence per share)              (0.01)       0.05           (0.02)

Diluted (pence per share)            (0.01)       0.05           (0.02)




                                 +------------+----------+---------------------+
Condensed consolidated interim   |            |          |                     |
balance sheet                    |   As at    |  As at   |        As at        |
                                 |            |          |                     |
                                 |            |   30     |                     |
                                 |30 September|September |      31 March       |
                                 |            |          |                     |
                                 |    2010    |   2009   |        2010         |
                                 |            |          |                     |
                                 | Un-audited |Un-audited|       Audited       |
                                 |            |          |                     |
                                 |   £,000    |  £,000   |        £,000        |
                                 |            |          |                     |
                                 |            |          |                     |
                                 |            |          |                     |
                                 |            |          |                     |
                                 |            |          |                     |
ASSETS                           |            |          |                     |
                                 |            |          |                     |
Non current assets               |            |          |                     |
                                 |            |          |                     |
Property, plant and equipment    |     27     |    20    |         24          |
                                 |            |          |                     |
Intangible fixed assets          |   1,366    |  1,306   |        1,311        |
                                 +------------+----------+---------------------+
Total non current assets         |   1,393    |  1,326   |        1,335        |
                                 |            |          |                     |
                                 |            |          |                     |
                                 |            |          |                     |
Current assets                   |            |          |                     |
                                 |            |          |                     |
Inventories                      |    702     |   384    |         612         |
                                 |            |          |                     |
Trade and other receivables      |   1,978    |  2,291   |        1,827        |
                                 |            |          |                     |
Cash and cash equivalents        |    104     |    85    |         118         |
                                 +------------+----------+---------------------+
Total current assets             |   2,784    |  2,760   |        2,557        |
                                 +------------+----------+---------------------+
Total assets                     |   4,177    |  4,086   |        3,892        |
                                 +------------+----------+---------------------+
                                 |            |          |                     |
                                 |            |          |                     |
LIABILITIES                      |            |          |                     |
                                 |            |          |                     |
Non current liabilities          |            |          |                     |
                                 |            |          |                     |
Borrowings                       |   (343)    |    0     |        (337)        |
                                 |            |          |                     |
Derivative                       |    (54)    |    0     |        (60)         |
                                 +------------+----------+---------------------+
Total non current liabilities    |   (397)    |    0     |        (397)        |
                                 |            |          |                     |
                                 |            |          |                     |
                                 |            |          |                     |
Current Liabilities              |            |          |                     |
                                 |            |          |                     |
Trade & other payables           |  (1,071)   | (1,064)  |        (974)        |
                                 |            |          |                     |
Finance facility liability       |  (1,105)   | (1,306)  |        (905)        |
                                 +------------+----------+---------------------+
Total current liabilities        |  (2,176)   | (2,370)  |       (1,879)       |
                                 +------------+----------+---------------------+
Total liabilities                |  (2,573)   | (2,370)  |       (2,276)       |
                                 +------------+----------+---------------------+
                                 |            |          |                     |
                                 +------------+----------+---------------------+
Net Assets                       |   1,604    |  1,716   |        1,616        |
                                 +------------+----------+---------------------+
                                 |            |          |                     |
                                 |            |          |                     |
EQUITY                           |            |          |                     |
                                 |            |          |                     |
Equity attributable to equity    |            |          |                     |
holders of the parent            |            |          |                     |
                                 |            |          |                     |
Share capital                    |   (878)    |  (878)   |        (878)        |
                                 |            |          |                     |
Shares to be issued              |   (717)    |  (701)   |        (717)        |
                                 |            |          |                     |
Retained earnings                |    (9)     |  (137)   |        (21)         |
                                 +------------+----------+---------------------+
Total equity                     |  (1,604)   | (1,716)  |       (1,616)       |
                                 +------------+----------+---------------------+
                                 |            |          |                     |
                                 +------------+----------+---------------------+
                                 |            |          |                     |
                                 |            |          |                     |
Condensed consolidated interim   |            |          |                     |
cash flow statement              | Six months |Six months|     Year ended      |
                                 |            |          |                     |
                                 |   ended    |  ended   |                     |
                                 |            |          |                     |
                                 |            |   30     |                     |
                                 |30 September|September |      31 March       |
                                 |            |          |                     |
                                 |    2010    |   2009   |        2010         |
                                 |            |          |                     |
Cashflows                        | Un-audited |Un-audited|       Audited       |
                                 |            |          |                     |
Cashflows from operating         |            |          |                     |
activities                       |   £,000    |  £,000   |        £,000        |
                                 |            |          |                     |
Operating Profit                 |     46     |    89    |         72          |
                                 |            |          |                     |
Adjustments for:                 |            |          |                     |
                                 |            |          |                     |
Depreciation                     |     3      |    2     |          6          |
                                 |            |          |                     |
Share based payment              |     0      |    0     |         16          |
                                 |            |          |                     |
Net foreign exchange gain/loss   |     0      |    2     |          0          |
                                 +------------+----------+---------------------+
                                 |     49     |    93    |         94          |
                                 |            |          |                     |
                                 |            |          |                     |
                                 |            |          |                     |
Movements in working capital     |            |          |                     |
                                 |            |          |                     |
(Increase)/Decrease in           |            |          |                     |
inventories                      |    (90)    |    68    |        (160)        |
                                 |            |          |                     |
(Increase) in accounts           |            |          |                     |
receivables                      |   (151)    |  (567)   |        (103)        |
                                 |            |          |                     |
Increase/(Decrease) in trade     |            |          |                     |
payables                         |     97     |   (20)   |        (65)         |
                                 +------------+----------+---------------------+
Cash (used by) operations        |   (144)    |  (519)   |        (328)        |
                                 |            |          |                     |
Finance Expense                  |    (58)    |   (44)   |        (90)         |
                                 |            |          |                     |
Net cash (used in) operating     |            |          |                     |
activities                       |   (153)    |  (470)   |        (324)        |
                                 |            |          |                     |
                                 |            |          |                     |
                                 |            |          |                     |
Cashflows from investing         |            |          |                     |
activities                       |            |          |                     |
                                 |            |          |                     |
Purchase of property plant  &    |            |          |                     |
equipment                        |    (6)     |   (12)   |        (18)         |
                                 |            |          |                     |
Expenditure relating to the      |            |          |                     |
acquisition and registration of  |            |          |                     |
licences and trademarks          |    (55)    |   (47)   |        (152)        |
                                 +------------+----------+---------------------+
Net cash (used in) investing     |            |          |                     |
activities                       |    (61)    |   (59)   |        (170)        |
                                 |            |          |                     |
                                 |            |          |                     |
                                 |            |          |                     |
Cashflows from financing         |            |          |                     |
activities                       |            |          |                     |
                                 |            |          |                     |
Net cash received from finance   |            |          |                     |
facilitiy                        |    200     |   411    |         160         |
                                 |            |          |                     |
Net cash received from           |            |          |                     |
convertible loan note            |     0      |    0     |         400         |
                                 |            |          |                     |
Net cash received from directors'|            |          |                     |
loan                             |     0      |   150    |          0          |
                                 +------------+----------+---------------------+
Net cash from financing          |            |          |                     |
activities                       |    200     |   561    |         560         |
                                 |            |          |                     |
                                 |            |          |                     |
                                 |            |          |                     |
                                 |            |          |                     |
                                 |            |          |                     |
Net (decrease)/increase in cash  |            |          |                     |
and cash equivalents             |    (14)    |    32    |         66          |
                                 |            |          |                     |
Cash & cash equivalents at the   |            |          |                     |
beginning of the period          |    118     |    52    |         52          |
                                 |            |          |                     |
                                 |            |          |                     |
                                 +------------+----------+---------------------+
Cash & cash equivalents at the   |            |          |                     |
end of the period                |    104     |    85    |         118         |
                                 +------------+----------+---------------------+


Notes:



1. Basis  of Preparation - This interim report was approved by the Board on 25
November  2010.  These consolidated financial statements are for the six months
ended   30 September   2010.  They   have  been  prepared  in  accordance  with
International  Finance Reporting  Standards (IFRS)  and International Financial
Reporting  Interpretation Committee (IFRIC)  interpretations as at 30 September
2010, 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  2010.  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 2010 were
approved  on 11 June 2010.  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. The  six  month  prior  year  comparatives  have  been changed to the format
presented in the full year accounts to 31 March 2010. In addition the six month
amortisation   charge  of  £25k  included  within  the  six  month  prior  year
comparatives has been reversed consistent with the full year presentation.



3. 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.








[HUG#1465853]








This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
    
Source: Blavod Wines & Spirits plc via Thomson Reuters ONE