Business
Preliminary Results
Preliminary Results.
About this update from Distil Plc
[{"type":"text","content":"\n \n\n\n\nBlavod Extreme Spirits PLC\n\n3 June 2009\n\nPreliminary Results\n\nBlavod Extreme Spirits plc (the \"Company\"), the owner of the Blavod\nBlack Vodka brand, and wines and spirits distributor, announces its\nunaudited preliminary results for the year ended 31 March 2009.\n\nFinancial highlights\n\n* Profit before tax from continuing activities of £185k (2008: £155k\n loss)\n\n* Revenue up 45% to £ 5.96m (2008: £4.09m)\n\n* Balance sheet restructured giving a positive balance on the group\n P&L reserves of £89k\n\nCommenting on the results, Richard Ambler, Managing Director, said:\n\"A good year: our first in profit which is a big turnaround from last\nyear. We are optimistic about the future.\"\n\nFor further information, please contact:\nBlavod Extreme Spirits plc Tel: 0207 352 2096\nRichard Ambler\n\nBrewin Dolphin Investment Banking Tel: 0845 213 4726\nNeil Baldwin\n\n\n\nChairman's statement\n\nThe Company had a good year, making an operating profit for the first\ntime. Top line growth came from increased sales of all our major\nbrands, with a significant contribution from recently-added brands.\nThe brands owned or licensed by the Company grew by 30% of which\nBlavod accounted for 7%.\n\nThe UK market was particularly strong for us. Our portfolio of\nreasonably-priced brands, each with its own distinct personality,\nappears to be well-positioned to survive and to grow in this\nrecession. Also, the additional brands not only add sales but also\ngive us access to retail outlets where we can introduce the wider\nportfolio.\n\nOn the other hand, export markets have proven more difficult, and\nmore uncertain. Exports grew by 5% over the previous year; the US\nmarket continues to retract as wholesalers and retailers reduce\ninventory, and the duty free business, which had been doing well for\nBlavod during the first six months of the year, fell off sharply in\nrecent months. However, distribution has improved, and export remains\na long-term opportunity.\n\nMargins have been hurt by the effect of the sharp fall in the pound\non the cost of some imports, the creeping increases in production\ncosts and the great difficulty of raising prices.\n\nAs shareholders will recall, we took measures to cut costs\nsignificantly between 2007 and 2008. We have maintained our overheads\nat roughly the same level of 2008, despite t...