Distil Regulatory News (DIS)

19 Jun 2006 07:01

Blavod Extreme Spirits PLC19 June 2006 Blavod Extreme Spirits PLC Preliminary Results For the twelve months ended 31 March 2006 Trading Highlights Financial • Turnover increased 72% to £5.4m (2005: £3.1m)• Full year case shipments increased by 51.4%• Recorded a gross margin of £1.7m (2005: £0.898m)• Year-end gross margin of 31.2% (2005: 28.8%)• Operational results, excluding the JV, improved to a loss of £2.5m (2005: £4.1m)• Sales for first two trading months of FY07 ahead 63% on same period last year Brands• Favourable market trend, particularly in the USA• Strong brand growth of Players Extreme caramel and cherry flavoured vodkas• Blavod Black Vodka continues to grow in major markets• Strong sales growth in the wine portfolio• Significant growth for UK agency brands, Mickey Finn's and Molinari• Global distribution strengthening as portfolio expands Joint Venture• Diamante Spirits, LLC - the joint venture between Blavod Extreme and Suntory International produces the El Diamante del Cielo Tequila products which were introduced in Oct 2005 to selective markets in the US and have made an encouraging start. Commenting on the results, Chief Executive Officer, Jeff Hopmayer, said: "The popularity of our brands increased rapidly in fiscal year 2006, with salesgrowing accordingly. Operating results for the company also made significantpositive improvements. The organic growth potential of our brands remainsapparent; the first two months have started well, with trading up 63%, comparedwith April and May 2005." Enquires: Blavod Extreme Spirits plcJeff Hopmayer, Chief Executive 001 615 771 9111Tony Murphy, Finance Director 001 615 771 9111 Brewing Dolphin SecuritiesMark Brady (0)11 3241 0129Keith Williams (0)11 3241 0186 Cardew GroupTim Robertson (0)20 7930 0777 Chairman's Statement Blavod Extreme Spirits had a good year in 2005/6 with strong sales growth,improved margins, significant reduction in operating loss and continuedexpansion of our portfolio of brands. Financial Sales grew by 72% to £5.4m compared to £3.1m in the previous year, with grossmargins improving to 31.2% in 2005/6, whilst shipments grew by 51.4%. Thecompany continued investing heavily in brand marketing and sales resources inthe US and the UK. The result for this fiscal year was an operating loss of£2.5m, compared to £4.1m in 2004/5. The company has sufficient funding in placeto continue to grow our business. We do not propose to pay a dividend. Brand Performance Blavod Black Vodka sales continued to grow in the difficult UK market whiledepletions in the USA were up significantly. As a result of our marketing andpromotional efforts popularity of Blavod has grown. The Players Extreme line ofproducts, in particular the cherry and caramel flavoured vodkas, are showingvery strong growth. This category of full-flavoured drinks is increasinglyattractive to all age groups and Players Extreme is well placed to takeadvantage of this opportunity. Agency Brands The brands with which we have exclusive agency agreements were also successful,in particular, Mickey Finn's and Molinari in the UK and Baroncini in the US. Thecompany has built strong partnerships with our suppliers whose brands nowrepresent a well-rounded portfolio of high quality wines and spirits. Joint Venture Blavod Extreme and Suntory of Japan have formed a joint venture to produce andmarket El Diamante del Cielo, tequilas of the highest quality. BES is thedistributor in the US and worldwide. The October 2005 launch in selected UScities was very well received. Distribution is currently being expanded to thebroader US market and export to international markets will begin soon. We arevery optimistic about the future of this joint venture with Suntory. Outlook The prospects for 2006/7 are good. Our brands across the portfolio haveperformed strongly in the first two months, and the company will also take onthe valuable partnership with Cockspur Rum in the UK from July this year. Themanagement team has been strengthened with Tony Murphy joining as FinanceDirector, while Fred Read has moved to direct operations. With attractive brands, a lively and determined management group and a salesteam with proven results, we expect a good year. Colin CampbellChairman Preliminary Results CONSOLIDATED PROFIT AND LOSS ACCOUNT for the year ended 31 March 2006 Notes Year to 31 March 2006 2005 £ 000 £ 000 Turnover 1 5,353 3,116Cost of sales (3,682) (2,218) -------- -------- Gross profit 1,671 898 Marketing and administrative expenses (4,168) (4,998) -------- -------- Operating loss (2,497) (4,100)Share of the operating loss of 2 (470) -Associate -------- -------- (2,967) (4,100) Bank interest receivable Group 48 182Associate 3 - -------- -------- 51 182 Loss on ordinary activities before (2,916) (3,918)taxation Taxation - - -------- -------- Loss for the year (2,916) (3,918) -------- -------- Loss per share 3 (4.41p) (5.99p)Diluted loss per share (4.41p) (5.99p) -------- -------- STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES for the year ended 31 March, 2006 Notes Year to 31 March Year to 31 March 2006 2005 £ 000 £ 000Loss for the year (2,916) (3,918)Investment in associate in otherreserves 931 -Foreign exchange differences onconversion of net investments (384) (122) --------- -------- Total recognised losses for theyear (2,369) (4,040) ========= ======== CONSOLIDATED BALANCE SHEET as at 31 March 2006 As at 31 March As at 31 March 2006 2005 £ 000 £ 000Fixed assetsIntangible assets 3,728 3,946Tangible assets 55 82Investment in associate 464 - -------- -------- 4,247 4,028 -------- --------Current assetsStock 1,089 866Debtors 1,405 1,113Cash at bank 1,070 2,142 -------- -------- 3,564 4,121 Creditors: amounts falling due within oneyear (1,716) (824) -------- -------- Net current assets 1,848 3,297 -------- -------- Total assets less current liabilities 6,095 7,325 Creditors: amounts falling due after oneyear (5) (11) -------- -------- Net assets 6,090 7,314 ======== ======== Capital and reservesCalled up share capital 713 654Share premium account 18,002 16,916Other reserve 464 -Profit and loss account (13,089) (10,256) -------- -------- Shareholders' funds 6,090 7,314 ======== ======== CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 March 2006 2006 2005 £ 000 £ 000 Cash outflow from operating activities (2,251) (5,209) -------- --------Returns on investmentsInterest received 48 182 -------- --------Net cash inflow from returns on investments 48 182 -------- -------- Capital expenditurePurchase of tangible fixed assets (2) (77)Expenditure relating to the registration of trademarks (10) (11) -------- --------Net cash outflow for capital expenditure (12) (88) AcquisitionExpenses related to acquisition - (34) -------- --------Net cash outflow relating to acquisitions - (34) -------- --------Cash outflow before financing (2,215) (5,149) -------- --------Financing Issue of ordinary share capital 1,240 -Cost of share issue (95) -Repayment of capital element of finance lease rental (2) (2) -------- --------Net cash inflow from financing 1,143 (2) ======== ========(Decrease)/increase of cash in the period (1,072) (5,151) ======== ======== NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2006 1. Basis of preparation The financial information in this statement is prepared under the historicalcost convention and in accordance with applicable accounting standards. It doesnot constitute statutory accounts as defined in Section 240 of the Companies Act1985. 2. Share of the operating loss of Associate This relates to the Group's share of the losses of Diamante Spirits, LLC,accounted for in accordance with FRS 9 "Associates and Joint Ventures" and is a"non-cash" item. 3. Loss per share The calculations of earnings per share for the year, both basic and diluted, arebased on a loss of £2,916,000 (2005: £3,918,000) and 66,074,582 (2005:65,443,633) shares in issue. 4. Published accounts Copies of the published accounts of the Company will be sent in due course toall shareholders and will be available from the offices of Brewin DolphinSecurities. This information is provided by RNS The company news service from the London Stock Exchange