Distil Regulatory News (DIS)

20 Jun 2005 07:00

Blavod Extreme Spirits PLC20 June 2005 20 June 2005 Blavod Extreme Spirits PLC Preliminary Results For the twelve months ended 31 March 2005 Trading Highlights Financial • Turnover increased 70% to £3.1m (2004: £1.8m) • Full year case shipments increased by 114% • Recorded a gross profit of £0.898m (2004: loss of £0.2m) • Yearend Gross Margin of 29%, current trading gross margin of 33% • Yearend Cash position of £2.1m • Total case shipments for the first 2 months of the current fiscal year are 95% ahead of the same period last year Brands • Favourable market trends for Blavod's portfolio of unique spirits brands • Strong US sales of Blavod Black Vodka • Added 13 new wine and spirit brand relationships during the year • Distribution strengthening as portfolio expands Joint Venture • Announced LOI agreement in May to form a Joint Venture with leading beverage producer Commenting on the results, Chief Executive Officer, Jeff Hopmayer, said: "Popularity and therefore demand for our core brands, including Blavod BlackVodka and Players Extreme grew rapidly in fiscal year 2005. Over the year thecompany invested significantly in repackaging and repositioning these brands andit is satisfying to see the benefits from these actions coming through. Forexample, through the first two months of the new fiscal year, case shipments ofPlayers Extreme have more than doubled over last year. While the Group is stillestablishing its presence, the significant growth potential of our brandsremains apparent." Enquires: Blavod Extreme Spirits plcJeff Hopmayer, Chief ExecutiveFred Read, Finance Director Cardew GroupTim Robertson 020 7930 0777Catherine Maitland Chairman's Statement This is my first statement to you as Chairman of Blavod Extreme Spirits ("theCompany" or "Blavod") following my appointment in January 2005. I am thereforepleased to report that Blavod has performed well, increasing case shipments by114% driven by demand for key brands Blavod Black Vodka and Players Extreme.This is an exciting period in the Company's development, as we look tocapitalise on the undoubted growth potential of our unique portfolio of brands. During the year the Company has made good progress in building the Blavod BlackVodka and Players Extreme spirit brands in the UK, US and internationalmarkets. We have also successfully added a series of distribution agreementswith well known wine and spirits brands. As a result Blavod now markets 22 wineand spirit brands. A key focus at this stage in the Group's development is improving positioning ofPlayers Extreme. This year we repositioned Players Extreme and introduced newpackaging in September 2004. Blavod Black Vodka was re-launched throughout ourUS distribution network. Financial Group turnover increased by 70% to £3.1m compared to £1.8m in the previous year. As anticipated, the company, which is significantly investing in developing itsbrands and creating the infrastructure to drive future revenues, recorded a lossat the pre-tax level of £3.9m. The results were impacted in particular by therepackaging of Players Extreme. The Group's gross margin percentage for the year in review was 29%. Measureshave been taken to improve gross margins in the future. Current tradingindicates that our margins have increased to 33% and we anticipate that theyshould continue to strengthen. Tight control of working capital has resulted ina cash balance of £2.1m. The company has sufficient funding to pursue itscommercial objectives. In line with previous statements no dividend is payable. Blavod Black Vodka Shipments of the Blavod Black Vodka in the UK market were up 23%, whileshipments in the critical US market were up 300%. Empirical evidence shows thatcase sales through the important UK supermarket chains increased almost 22%.Blavod Black Vodka continues to expand around the world where we've seen openingor expansion of markets in Asia, the Middle East and Russia. At the same time,utilizing our US distribution network, combined with marketing and promotionalefforts around the brand, Blavod Black Vodka has grown in popularity in the US. Players Extreme The new packaging of Players Extreme was made with an eye to creating a moreupscale image and becoming more efficient with consolidated production of allour spirits in the UK. This was completed late summer 2004, with shipmentsbeginning in September/October, in time for the holiday selling season. Holidayresults were excellent and shipments for the year more than tripled. Partnerships As part of our strategy to balance the brand portfolio and improve revenues,Blavod has formed a number of key partnerships with well respected brands todistribute their products in the UK and the US. The Company now has 19distribution relationships, including in the UK: Domaines Barons de Rothschild,Fernet Branca, Mickey Finns, Molinari Sambuca and Royal Tokaji ; in the US aline of Italian wines, including: Bruno Rocca, Baroncini, Catina Corbera,Contadi Constaldi, Campo Bargello, Fersin Davide, Materia Prima, Petra, TenutaL'illuminata, Tenuta San Giorgio, Terpin, and Vinae Italiae. These are strongrelationships and all have no capital cost aside from stock purchase. Our agency brands in the UK responded with sales increases of almost 82%year-on-year. We believe these positive trends will continue in the future aswe work with our distributor and retail partners. We also believe the recently announced signing of a letter of intent to form ajoint venture with a leading beverage producer is another important step forwardin our strategy to continue enhancing our performance. Outlook Current trading data for the new fiscal year is encouraging, and we aresignificantly ahead of the same period last year. Our employees and partnersare great ambassadors of our products and brands, showing the kind of passionevery day that makes this company exciting.The board believes that we are on course to continue developing our brands, toincrease market penetration and grow consumer awareness of our brands. Colin CampbellChairman Blavod Extreme Spirits plc Consolidated Profit and Loss Account For the year ended 31 March 2005 2005 2004 £'000 £'000 Turnover 3,116 1,825Cost of sales (2,218) (1,178)Exceptional cost of sales - stock re-packagingprovision - (869) ------- -------Total cost of sales (2,218) (2,047) ------- -------Gross profit/(loss) 898 (222)Marketing and administrative expenses (4,998) (2,164) ------- -------Operating loss (4,100) (2,386)Bank interest receivable 182 54 ------- -------Loss on ordinary activities before taxation (3,918) (2,332)Taxation - - ------- -------Retained loss for the financial year (3,918) (2,332) ======== ======== Basic loss per share (5.99p) (8.50p)Diluted loss per share (5.99p) (8.50p)All of the group's activities are classed ascontinuing. Blavod Extreme Spirits plc Statement of Total Recognised Gains and Losses For the year ended 31 March 2005 2005 2004 £'000 £'000 Loss for the financial year (3,918) (2,332)Foreign exchange differences on conversion of netinvestments (122) - ------- -------Total recognised losses for the year (4,040) (2,332) ======== ======== Blavod Extreme Spirits plc Consolidated Balance Sheet As at 31 March 2005 2005 2004 £'000 £'000Fixed AssetsIntangible assets 3,946 4,161Tangible assets 82 41 ------- ------- 4,028 4,202 ------- -------Current assetsStock 866 249Debtors 1,113 921Cash at bank 2,142 7,293 ------- ------- 4,121 8,463Creditors: amounts falling due within one year (824) (1,277) ------- -------Net current assets 3,297 7,186 ------- -------Total assets less current liabilities 7,325 11,388 ------- -------Creditors: amounts falling due after one year (11) - ------- -------Net assets 7,314 11,388 ======== ======== Capital and reservesCalled up share capital 654 654Share premium account 16,916 16,950Profit and loss account (10,256) (6,216) ------- -------Equity shareholders' funds 7,314 11,388 ======= ======= Blavod Extreme Spirits plc Consolidated Cash Flow Statement For the year ended 31 March 2005 2005 2004 £'000 £'000 Cash outflow from operating activities (5,209) (2,287) ------- -------Returns on investmentsInterest received 182 54 ------- -------Net cash inflow from returns on investments 182 54 ------- -------Capital expenditurePurchase of tangible fixed assets (77) (10)Expenditure relating to the registration oftrademarks (11) (16) ------- -------Net cash outflow for capital expenditure (88) (26) ------- -------AcquisitionExpenses related to acquisition (34) (546)Cash acquired with subsidiary - 2 ------- -------Net cash outflow relating to acquisitions (34) (544) ------- -------Cash outflow before financing (5,149) (2,803) ------- -------FinancingIssue of ordinary share capital - 10,000Cost of share issue - (926)Repayment of capital element of finance leaserental (2) - ------- -------Net cash (outflow)/inflow from financing (2) 9,074 ------- -------(Decrease)/increase of cash in the year (5,151) 6,271 ======== ======== Blavod Extreme Spirits plc NOTES for the year ended 31 MARCH 2005 1. Turnover Turnover relates to the company's principal activity. 2005 2004 £000 £ 000 United Kingdom 1,400 965 Europe - EU 7 18 USA 1,409 512 Duty Free 127 184 Rest of World 173 146 --------- ---------- 3,116 1,825 2. Loss per share The loss per share is based upon a loss of £3,918,000 (2004: loss of £2,332,000) and the weighted average number of shares ranking for dividend during the year of 65,443,633 (2004: 27,443,139). The fully-diluted loss per share is based upon the loss as disclosed above and the weighted average number of shares ranking for dividend during the year of 65,443,633 (2004: 27,443,139) adjusted for the effects of all dilutive potential shares. 3. Basis of preparation The financial information set out in this document does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The statutory accounts for the year ended 31 March 2005, on which the auditors gave an unqualified audit report, will be delivered to the Registrar of Companies in due course. 4. Published accounts Copies of the published accounts of the Company will be sent in due course to all shareholders and will be available from the offices of Evolution Securities Limited at 100 Wood Street, London, EC2V 7AN. This information is provided by RNS The company news service from the London Stock Exchange