Interim Results

Blavod Black Vodka PLC
28 November 2002


                             BLAVOD BLACK VODKA PLC


                              INTERIM REPORT 2002

CHAIRMAN'S STATEMENT


I am pleased to report that both case sales and revenues of our main brand,
Blavod Black Vodka, have increased by approximately 50% compared to the previous
period. Whilst the advance in turnover for the half year is partly due to the
addition of new brands, the improvement in gross profit margins is a clear
demonstration of the benefits accruing from our actions to reduce production
costs.

Our distribution of Domaines Barons de Rothschild wines continued to provide a
useful contribution. We also commenced distribution of Fernet Branca products in
the UK in May of this year and whilst the financial contribution was not
expected to be significant, it exceeded expectations.

The Babco brands, however, after early promise, are not performing adequately
and we are reviewing our strategy for these brands which have achieved listings
but are below expectations with regard both to sales revenue and gross margins.
A production problem in respect of one range has arisen and we have submitted a
claim to the supplier in respect of our current stocks. As the outcome of this
remains uncertain , we have adopted a prudent approach in making full provision
for our exposure.

Apart from this exceptional item , the reduction in operating losses
demonstrates satisfactory progress towards achieving our initial target of
breakeven.

Since the end of the half year our case sales of Blavod are in line with
expectations. The adverse effects of the recession in Brazil, which have also
affected our competitors, have been more than offset by new markets such as
Russia, Poland and former Soviet Union countries.

Traditional markets such as UK and Duty Free continue to grow and whilst it is
still too early to predict a final outcome for the current financial year with
any certainty, we remain confident of present trends.


Allan Shiach


UNAUDITED PROFIT AND LOSS ACCOUNT for the six months ended 30 SEPTEMBER 2002


                                                                                                              
                                                     Notes                  Six months to 30 September         Year to
                                                                                                              31 March
                                                                                2002               2001           2002
                                                                           Unaudited          Unaudited        Audited
                                                                               £ 000              £ 000          £ 000

Turnover                                                                         634                275          1,145
Cost of sales                                                                  (419)              (211)          (792)

Gross profit                                                                     215                 64            353
Marketing and Administrative expenses                                          (579)              (587)        (1,605)
Exceptional item - stock claim provision                                       (149)                  -              -

Operating loss                                                                 (513)              (523)        (1,252)

Bank interest receivable                                                          21                 65             97

Loss on ordinary activities before taxation                                    (492)              (458)        (1,155)

Taxation                                                                           -                  -              -

Loss for the financial period                          2                       (492)              (458)        (1,155)

Loss per share                                                               (3.33p)            (3.20p)        (7.94p)
Diluted loss per share                                                       (3.33p)            (3.14p)        (7.87p)

There were no recognised gains or losses as defined in Financial Reporting
Standard No. 3 other than those above.


UNAUDITED CONSOLIDATED BALANCE SHEET as at 30 SEPTEMBER 2002

                                                                                                              
                                                                                      30 September            31 March
                                                                                2002               2001           2002
                                                                           Unaudited          Unaudited        Audited
                                                                               £ 000              £ 000          £ 000
Fixed assets
Intangible assets                                                              1,273                901          1,344
Tangible assets                                                                   25                 25             33

                                                                               1,298                926          1,377

Current assets
Stock                                                                            145                 55            286
Debtors                                                                          279                277            430
Cash at bank                                                                   1,094              2,662          1,236

                                                                               1,518              2,994          1,952

Creditors: amounts falling due within one year                                  (496)              (603)          (517)

Net current assets                                                             1,022              2,391          1,435

Net assets                                                                     2,320              3,317          2,812

Capital and reserves
Called up share capital                                                          148                143            148
Share premium account                                                          5,967              5,780          5,967
Profit and loss account                                                      (3,795)            (2,606)        (3,303)

Shareholders' funds                                                            2,320              3,317          2,812


UNAUDITED CONSOLIDATED CASH FLOW STATEMENT for the period ended 30 SEPTEMBER 2002

                                                                                                                Year to
                                                                          Six months to 30 September           31 March
                                                                               2002                2001            2002
                                                                          Unaudited           Unaudited         Audited
                                                                              £ 000               £ 000           £ 000

Cash outflow from operating activities                                        (157)               (418)         (1,529)

Returns on investments
Interest received                                                                21                  65              97

Net cash inflow from returns                                                     21                  65              97
on investments

Capital expenditure
Purchase of tangible fixed assets                                                 -                (16)            (33)
Expenditure relating to the registration of trademarks                          (6)                (10)            (15)
Purchase of distribution rights                                                   -                   -           (325)

Net cash outflow for capital expenditure                                        (6)                (26)           (373)

(Decrease) in cash in the period                                              (142)               (379)         (1,805)


NOTES TO THE FINANCIAL STATEMENTS for the six months ended 30 SEPTEMBER 2002


 1. Basis of preparation

    The financial information in this interim statement is prepared under the
    historical cost convention and in accordance with applicable accounting
    standards. It does not constitute statutory accounts as defined in Section
    240 of the Companies Act 1985. The financial information for the full
    preceding year is based on the statutory accounts for the year to 31 March
    2002. Those accounts, upon which the auditors issued an unqualified opinion,
    have been delivered to the Registrar of Companies.

    The interim financial information has been prepared on the basis of the
    accounting policies set out in the Group's statutory accounts for the year
    ended 31 March 2002.


 2. Loss per share

    The calculations of loss per share are based on a loss £492,000 (2001:
    £458,000), a basic weighted average of 14,776,306 shares in issue (2001:
    14,326,000 shares) and a diluted weighted average of 14,776,306 shares in
    issue (2001:14,600,000 shares). The calculations of earnings per share for
    the full year to 31 March 2002 are based on a loss of £1,155,000, a basic
    weighted average of 14,551,306 shares in issue and a diluted weighted
    average of 14,667,965 shares.



                      This information is provided by RNS
            The company news service from the London Stock Exchange