Distil Regulatory News (DIS)

20 Dec 2007 15:12

Blavod Extreme Spirits PLC20 December 2007 Blavod Extreme Spirits plc 20 December 2007 Interim results Company Statement The Company announces the half year results to the end of September, 2007. Blavod Extreme Spirits PLC made a loss of £1.321million which includes a loss of£1.244million by the US division. The division has been sold subsequently. The UK operating company, which owns the Blavod brand and valuable agencydistribution agreements in the UK, made a profit of £56.8k compared to a loss inthe same period last year of £203k. Earlier this week the company announced that it has raised £354k, after expensesof £5k, in a placing of ordinary shares at 2.75p, representing a 5% premium tothe share price at the time of the placing. The Directors subscribed for £96.5kof the total Current sales of all the major brands continue to show positive trends. Condensed consolidated interim income statement 6 months to 6 months to Year to 30 September 30 September 31 March 2007 2006 2007 Note £'000 £'000 £'000 (unaudited) (unaudited) (audited and restated) Revenue 1,815 1,451 3,251 Cost of sales (1,340) (1,072) (2,415) ---------- ---------- ---------- Gross profit 475 379 836 Administrative costs (558) (898) (1,504) ---------- ---------- ---------- Operating loss (83) (519) (668) Finance income 6 37 19 ---------- ---------- ---------- Net finance income 6 37 19 ---------- ---------- ---------- Loss before tax and loss for the period from continuing operations (77) (482) (649) Discontinued operations Loss for the period from discontinued operations (1,244) (1,201) (5,878) ---------- ---------- ---------- Loss for the period (1,321) (1,683) (6,527) ========== ========== ========== Earnings per share:From continuing operations Basic (pence per share) 3 (0.11) (0.68) (0.90) ========== ========== ==========Diluted (pence per share) 3 (0.11) (0.68) (0.90) ========== ========== ========== Condensed consolidated interim balance sheet 30 September 30 September 31 March 2007 2006 2007 Note £'000 £'000 £'000 (unaudited) (unaudited) (audited and restated)ASSETS Non-current assets Property, plant and equipment 1 35 33 Goodwill - 3,022 - Other intangible assets 641 757 682 Investments in associates - 266 255 ---------- ---------- ---------- Total non-current assets 642 4,080 970 ---------- ---------- ---------- Current assets Inventories 230 1,309 1,032 Trade and other receivables 881 1,972 1,313 Cash and cash equivalents 247 372 401 ---------- ---------- ---------- 1,358 3,653 2,746 Non-current assets classified as held for sale 1,306 - - ---------- ---------- ---------- Total current assets 2,664 3,653 2,746 ---------- ---------- ---------- Total assets 3,306 7,733 3,716 ========== ========== ========== LIABILITIES Current liabilities Trade and other payables (1,079) (2,366) (1,496) Liabilities directly associated with non-current assets (2,923) - - classified as held for sale ---------- ---------- ---------- Total current liabilities (4,002) (2,366) (1,496) ---------- ---------- ---------- Non-current liabilities Long-term borrowings - (1,009) (1,664) ---------- ---------- ---------- Total non-current liabilities - (1,009) (1,664) ---------- ---------- ---------- Total liabilities (4,002) (3,375) (3,160) ---------- ---------- ---------- Net (liabilities)/assets (696) 4,358 556 ========== ========== ========== EQUITY Equity attributable to equity holders of the parent Share capital 732 713 732 Share premium account 18,240 18,002 18,240 Shares to be issued 1,105 1,077 1,093 Other reserve 26 266 255 Profit and loss account (21,442) (16,201) (20,359) Translation reserve 643 501 595 ---------- ---------- ---------- Total equity (696) 4,358 556 ========== ========== ========== Condensed consolidated interim statement of recognised income and expense 6 months to 6 months to Year to 30 30 September September 31 March 2007 2006 2007 Note £'000 £'000 £'000 (unaudited) (unaudited) (audited and restated)Exchange differences on translation of foreign operations 48 501 595 Exchange differences on translation of associate (6) - (42) Share of additional capital contribution to associate - - 156 ---------- ---------- ---------- Net income recognised directly in equity 42 501 709 Loss for the period (1,321) (1,683) (6,527) ---------- ---------- ---------- Total recognised income and expense for the period (1,279) (1,182) (5,818) ========== ========== ========== Condensed consolidated interim cash flow statement 6 months to 6 months to Year to 30 31 March 30 September September 2007 2007 2006 £'000 Note £'000 £'000 (audited (unaudited) (unaudited) and restated) Cash flows from operating activitiesProfit after taxation (1,321) (1,683) (6,527) Adjustments for: Depreciation 33 29 37 Amortisation 41 - 44 Impairment of goodwill - - 3,022 Share-based payment 12 25 41 Share of losses in associates 223 198 323 Net foreign exchange (gain)/loss 43 (50) 611 Net finance costs 112 (13) 72 ---------- ---------- ---------- (857) (1,494) (2,377) Movements in working capital Decrease/(increase) in inventories 91 (220) 57 Decrease/(increase) in trade receivables 164 (567) 92 Increase/(decrease) in trade payables 516 636 (234) ---------- ---------- ---------- Cash used by operations (86) (1,645) (2,462) Interest paid (91) (24) (91) ---------- ---------- ---------- Net cash used by operating activities (177) (1,669) (2,553) ---------- ---------- ---------- Cash flows from investing activitiesInterest received 6 37 19 Purchase of property, plant and equipment (38) (9) (23) Proceeds from sale of property, plant and equipment - - 8 Expenditure relating to the registration of trademarks - (51) (20) ---------- ---------- ---------- Net cash used in investing activities (32) (23) (16) ---------- ---------- ---------- Cash flows from financing activitiesProceeds from issue of share capital - - 257 Proceeds from long-term borrowings 66 1,009 1,664 Repayment of finance lease - (5) (5) ---------- ---------- ---------- Net cash from financing activities 66 1,004 1,916 ---------- ---------- ---------- Net decrease in cash and cash equivalents (143) (688) (653) Cash and cash equivalents at beginning of period 401 1,070 1,070 Effects of exchange rate changes on the balance of cash held in foreign currencies (2) (10) (16) ---------- ---------- ---------- Cash and cash equivalents at end of period 4 256 372 401 ========== ========== ========== Notes to the condensed consolidated interim financial statements 1 General information Blavod Extreme Spirits plc is incorporated and domiciled in Great Britain.Blavod Extreme Spirits plc's registered address is 202 Fulham Road, London, SW109PJ. Its shares are listed on the AIM Market of the London Stock Exchange. These condensed consolidated interim financial statements of Blavod ExtremeSpirits plc ("the Parent Company") and its subsidiaries (together "the Group")have been approved for issue by the Board of Directors on 20 December 2007. The financial information set out in this interim report does not constitutestatutory accounts as defined in Section 240 of the Companies Act 1985. TheGroup's statutory financial statements for the year ended 31 March 2007,prepared under UK GAAP, have been filed with the Registrar of Companies. Theauditor's report on those financial statements was unqualified and did notcontain a statement under Sections 237(2) and (3) of the Companies Act 1985. Copies of these statements are available from the company's registered office. 2 Basis of preparation These condensed consolidated interim financial statements are for the six monthsended 30 September 2007. They have been prepared in accordance with therequirements of IFRS 1 "First-time Adoption of International Financial ReportingStandards" relevant to interim reports, because they relate to part of theperiod covered by the Group's first IFRS financial statements for the year ended31 March 2008. They do not include all of the information required for fullannual financial statements, and should be read in conjunction with theconsolidated financial statements of the Group for the year ended 31 March 2007. These financial statements have been prepared under the historical costconvention and are presented in Pounds Sterling (£), which is also thefunctional currency of the Parent Company. They have been prepared in accordance with accounting policies based on therecognition and measurement principles of IFRS, which are in issue as adopted bythe European Union (EU) and are effective at 31 March 2008, or which areexpected to be adopted and effective at 31 March 2008, the first annualreporting date at which the Group is required to use IFRS accounting standardsadopted by the EU. Blavod Extreme Spirits plc's consolidated financial statements were prepared inaccordance with United Kingdom Accounting Standards (United Kingdom GenerallyAccepted Accounting Practice) until 31 March 2007. The date of transition toIFRS was 1 April 2006. The comparative figures in respect of the year to 31March 2007 and interim period to 30 September 2006 have been restated to reflectchanges in accounting policies as a result of adoption of IFRS. The disclosuresrequired by IFRS 1 concerning the transition from UK GAAP to IFRS are given inthe reconciliation schedules, presented and explained in note 7. The accounting policies have been applied consistently throughout the Group forthe purposes of preparation of these condensed consolidated interim financialstatements. 3 Earnings per share The calculation of the basic earnings per share is based on the earningsattributable to ordinary shareholders divided by the weighted average number ofshares in issue during the year. The diluted loss per share is identical to the basic loss per share as theexercise of warrants and options would have the effect of reducing the loss pershare and therefore is not dilutive under IAS 33. Reconciliations of the earnings and weighted average number of shares used inthe calculations are set out below. 6 months to 6 months to Year to 30 September 30 September 31 March 2007 2006 2007 (unaudited) (unaudited) (audited and restated) Continuing operationsLoss attributable to ordinary shareholders (£'000) (77) (482) (649) Weighted average number of shares (used for basic earnings per share) 73,246,608 71,379,700 71,891,182 ---------- ---------- ---------- Basic and diluted loss per share (pence) (0.11) (0.68) (0.90) ========== ========== ========== Discontinued operationsLoss attributable to ordinary shareholders (£'000) (1,244) (1,201) (5,878) Weighted average number of shares (used for basic earnings per share) 73,246,608 71,379,700 71,891,182 ---------- ---------- ---------- Basic and diluted loss per share (pence) (1.70) (1.68) (8.18) ========== ========== ========== Total operationsLoss attributable to ordinary shareholders (£'000) (1,321) (1,683) (6,527) Weighted average number of shares (used for basic earnings per share) 73,246,608 71,379,700 71,891,182 ---------- ---------- ---------- Basic and diluted loss per share (pence) (1.80) (2.36) (9.08) ========== ========== ========== 4 Cash and cash equivalents For the purposes of the cash flow statement, cash and cash equivalents at theend of the period as shown in the cash flow statement can be reconciled to therelated items in the balance sheet as follows: 30 30 31 March September September 2007 2006 2007 £'000 £'000 £'000 (unaudited) (unaudited) (audited) Cash and cash equivalents 247 372 401 Cash and cash equivalents included in a disposal group held for sale 9 - - ---------- ---------- ---------- 256 372 401 ========== ========== ========== 5 Dividends The directors do not propose the payment of a dividend for the period. 6 Events after the balance sheet date On 5 October 2007, the group sold all the assets and liabilities exceptintercompany balances of one of its subsidiaries, Blavod Extreme Spirits USAInc. ("BES") to Black Diamond Spirits LLC, a company owned by J.S. Hopmayer. Aspart of the sale, intercompany balances due from BES to group companies of£7,413,000 were waived, and Blavod Extreme Spirits plc received cash of $725,000and was released from 'with debt reduction options' issued to Laurus Master FundLtd. 7 Explanation of transition to IFRS As stated in the Basis of Preparation, these are the Group's first condensedconsolidated interim financial statements prepared under IFRS, and relate topart of the period covered by the first annual consolidated financial statementswhich will be prepared in accordance with IFRS. An explanation of how the transition from UK GAAP to IFRS has affected theGroup's reported financial position, financial performance and cash flows is setout below. IFRS 1 permits companies adopting IFRS for the first time to take certainexemptions from the full requirements of IFRS in the transition period. Theseinterim financial statements have been prepared on the basis of taking thefollowing exemptions: • Business combinations prior to 1 April 2006, the Group's date of transition to IFRS, have not been restated to comply with IFRS 3 "Business Combinations". The carrying amount of goodwill at 1 April 2006 under UK GAAP of £3,022,000 has been treated as its deemed cost. • Cumulative translation differences on foreign operations are deemed to be nil at 1 April 2006. Any gains and losses recognised in the consolidated income statement on subsequent disposal of foreign operations will exclude translation differences arising prior to the transition date; and • The entity has elected not to apply IAS 21 "The Effects of Changes in Foreign Exchange Rates" retrospectively to goodwill and fair value adjustments arising on business combinations before the Group's date of transition to IFRS. Such goodwill and fair value adjustments are not treated as foreign currency assets and so are not retranslated at each reporting date. Reconciliation of equity at 1 April 2006 UK GAAP a b c d e f IFRS £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Non-current assets Property, plant andequipment 55 - - - - - - 55 Goodwill 3,022 - - - - - - 3,022 Other intangibleassets 706 - - - - - - 706 Investments in associates 464 - - - - - - 464 Current assets Inventories 1,089 - - - - - - 1,089 Trade and otherreceivables 1,405 - - - - - - 1,405 Cash and cash equivalents 1,070 - - - - - - 1,070 Current liabilities Trade and other payables (1,716) (14) - - - - - (1,730) Non-current liabilities Long-term borrowings - - - - - - - - Other non-currentliabilities (5) - - - - - - (5) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Net assets 6,090 (14) - - - - - 6,076 ========== ========== ========== ========== ========== ========== ========== ==========Equity Share capital 713 - - - - - - 713 Share premium account 18,002 - - - - - - 18,002 Shares to be issued 1,052 - - - - - - 1,052 Other reserve 464 - - - - - - 464 Profit and loss account (14,141) (14) - - - - - (14,155) Translation reserve - - - - - - - - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Total equity 6,090 (14) - - - - - 6,076 ========== ========== ========== ========== ========== ========== ========== ========== Reconciliation of equity at 30 September 2006 UK GAAP a b c d e f IFRS £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Non-current assets Property, plant andequipment 35 - - - - - - 35 Goodwill 3,022 - - - - - - 3,022 Other intangibleassets 757 - - - - - - 757 Investments in associates 266 - - - - - - 266 Current assets Inventories 1,309 - - - - - - 1,309 Trade and otherreceivables 1,972 - - - - - - 1,972 Cash and cash equivalents 372 - - - - - - 372 Current liabilities Trade and other payables (3,361) (14) - - - 1,009 - (2,366) Non-current liabilities Long-term borrowings - - - - - (1,009) - (1,009) Other non-current - - - - - - - - liabilities ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Net assets 4,372 (14) - - - - - 4,358 ========== ========== ========== ========== ========== ========== ========== ==========Equity Share capital 713 - - - - - - 713 Share premium account 18,002 - - - - - - 18,002 Shares to be issued 1,077 - - - - - - 1,077 Other reserve 266 - - - - - - 266 Profit and loss account (15,686) (14) - - - - (501) (16,201) Translation reserve - - - - - - 501 501 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Total equity 4,372 (14) - - - - - 4,358 ========== ========== ========== ========== ========== ========== ========== ========== Reconciliation of equity at 31 March 2007 UK GAAP a b c d e f IFRS £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Non-current assets Property, plant andequipment 33 - - - - - - 33 Goodwill - - - - - - - - Other intangibleassets 682 - - - - - - 682 Investments in associates 255 - - - - - - 255 Current assets Inventories 1,032 - - - - - - 1,032 Trade and otherreceivables 1,313 - - - - - - 1,313 Cash and cash equivalents 401 - - - - - - 401 Current liabilities Trade and other payables (1,482) (14) - - - - - (1,496) Non-current liabilities Long-term borrowings (1,664) - - - - - - (1,664) Other non-current - - - - - - - - liabilities ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Net assets 570 (14) - - - - - 556 ========== ========== ========== ========== ========== ========== ========== ==========Equity Share capital 732 - - - - - - 732 Share premium account 18,240 - - - - - - 18,240 Shares to be issued 1,093 - - - - - - 1,093 Other reserve 255 - - - - - - 255 Profit and loss account (19,750) (14) - - - - (595) (20,359) Translation reserve - - - - - - 595 595 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Total equity 570 (14) - - - - - 556 ========== ========== ========== ========== ========== ========== ========== ========== Reconciliation of loss for 6 months ended 30 September 2006 UK GAAP a b c d e f IFRS £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Revenue 3,540 - (2,089) - - - - 1,451 Cost of sales (2,554) - 1,482 - - - - (1,072) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Gross profit 986 - (607) - - - - 379 Administrative costs (2,484) - 1,586 - - - - (898) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Total administrative costs (2,484) - 1,586 - - - - (898) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Operating loss (1,498) - 979 - - - - (519) Finance income 13 - - 24 - - - 37 Finance costs - - 24 (24) - - - - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Net finance income 13 - 24 - - - - 37 Share of (loss) of associate (198) - 198 - - - - - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------(Loss)/profit before tax (1,683) - 1,201 - - - - (482) Income tax expense - - - - - - - - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Loss for the period from continuing operations (1,683) - 1,201 - - - - (482) Loss for the period from discontinued operations - - (1,201) - - - - (1,201) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Loss for the period (1,683) - - - - - - (1,683) ========== ========== ========== ========== ========== ========== ========== ========== Reconciliation of loss for the year to 31 March 2007 UK GAAP a b c d e f IFRS £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Revenue 6,899 - (3,648) - - - - 3,251 Cost of sales (5,105) - 2,690 - - - - (2,415) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Gross profit 1,794 - (958) - - - - 836 Administrative costs (5,063) - 3,400 - 159 - - (1,504) Impairment of goodwill (2,863) - 3,022 - (159) - - - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Total administrative costs (7.926) - 6,422 - - - - (1,504) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Operating loss (6,132) - 5,464 - - - - (668) Finance income - - - 19 - - - 19 Finance costs (72) - 91 (19) - - - - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Net finance (cost)/income (72) - 91 - - - - 19 Share of loss of associate (323) - 323 - - - - - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Loss before tax (6,527) - 5,878 - - - - (649) Income tax expense - - - - - - - - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Loss for the period from continuing operations (6,527) - 5,878 - - - - (649) Loss for the period from discontinued operations - - (5,878) - - - - (5,878) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------Loss for the period (6,527) - - - - - - (6,527) ========== ========== ========== ========== ========== ========== ========== ========== Notes to the reconciliations a) In accordance with IAS 19, Blavod is required to accrue its holiday pay. b) At 30 September 2007, Blavod's US operations were held for sale. The sale was completed in October 2007. In accordance with IFRS 5, this constitutes a major geographical area. As such, the non-current assets must be classified as held for sale and the operations must be reclassified to discontinued. c) Gross up of interest income from net interest costs. d) Reclassification of the amortisation on goodwill to impairment of goodwill as goodwill was completely impaired. e) Reclassify long-term note from current liabilities. f) Reclassify the foreign exchange reserve from the profit and loss account. Application of IFRS has resulted in reclassification of certain items in thecash flow statement as follows: (i) Under UK GAAP, payments to acquire property, plant and equipment were classified as part of 'Capital expenditure and financial investment'. Under IFRS, payments to acquire property, plant and equipment have been classified as part of 'Investing activities'. There are no other material differences between the cash flow statementpresented under IFRS and the cash flow statement presented under UK GAAP. ENDS This information is provided by RNS The company news service from the London Stock Exchange