05/10/2005
An upbeat update from black vodka maker Blavod Extreme Spirits provides an opportunity to pick up shares before a potentially bountiful full interim results release in late November. Issued to coincide with the completion of its interim period, the statement contains encouraging signs, even though the shares have already been squeezed up 5.6% today to 37.5p and are well ahead of recent lows below 17p in July.
However, as the London and Tennessee-based company – which not only produces the Blavod black vodka but also the Players Extreme vodkas and rums and a selection of Italian wines – has seen year-on-year case sales increase 137%, with a 55% rise in the UK and a huge 284% surge over Atlantic, there is potential for some superlative results. Estimates are for last year’s full year sales of £3.1m to leap to £8.6m for 2006, rising to £12.6m the period after. And acquisitions are also being sought, chief executive Jeff Hopmayer detailing that specific spirits brands with good case volume sales are the intended object of desire for this first purchase.
Steadily improving sales look like being further aided by the August formation of a joint venture, called Diamante Spirits, with US drinks giant Suntory to create and market new premium spirits, with the latter providing funding to cover development, operating and marketing costs. The JV’s maiden creations, a group of tequilas branded El Diamante del Cielo, were launched in September and will be sold in the US as a premium product.
Hopmayer says he is extremely encouraged by trading, ‘especially as we move into the important back-half selling season’, traditionally the strongest for the industry. Black vodka is a big seller in the Halloween season, popular ‘not just with Pagans’ as it’s the ‘only way to turn drinks black’.
| Market cap: | £24.54m |
| PE Forecast: | n/a |
| Share price: | 37.5p |
| AIM | £3.95m |
4.50p
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0.00p
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| Other company articles: |
| 02/01/2007 |
| 08/08/2006 |
| 17/07/2006 |
| 05/10/2005 |
| 26/08/2005 |
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