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Time is at a premium at the moment, (the cricket is on)so I will take the lazy way out on recommending this one and just copy the last brokers note, I do expect a new one out any day with todays excelent news. Heres the Broker Buy note from Evo Bee Greg.....
The group have (sic) recently announced the acquisition of Extreme Beverage Company. The merger rationale seems excellent, especially given the nature and appeal of both the Players Extreme and Blavod brands to similar markets whilst the depth of Extreme�s distribution network in the US will give Blavod the much needed platform from which to grow. The management team is headed up by CEO Jeff Hopmayer, the original founder of Extreme Beverage. He is a proven entrepreneur with a very strong track record.



The US remains the only major untapped market for Blavod but also represents the biggest scope for potential especially given that the US is the most important vodka market in the world. In addition flavoured and ultra-premium vodkas are predicted to enjoy the greatest future growth with flavoured vodka now accounting for over 5% of the total vodka market.

Our forecasts are based on relatively conservative assumptions and are primarily driven off our own estimates of case sales. For the year to March 2004 we expect the total number of cases sold to be in the region of 49,000 (this is based on a full 12-month trading period from Blavod but only includes Extreme�s trading period from the 20th January) and expect this to grow to 229,000 in 2004/05e. Gross margin of c33% is low compared to the industry average of c60% and we expect the gross margin to grow as the group realises further cost efficiencies. Our forecasts assume breakeven in 2005/06e.

Valuation is less straightforward and historically the main valuation metric has been industry exit multiples for previous transactions and case sale ratios. These give a range of between 55p and 80p a share. However, there are risks and the group is still in the early stages of growing both the Blavod and Players Extreme brands and as such our price target of 55p reflects the lower end of our range. As the strength of the brands grow and they become more of a strategic asset, this could move the valuation towards the top end of our range in line with our DCF value of 85p. This is an appealing and attractive growth story."

Year to March 31st Sales (� million) Pre-Tax Profit (�million) Earnings Per Share (p)
2004E 1.8 -1.3 -5.4
2005E 9.5 -2.9 -4.7
2006E 17.9 0.3 0.4

Nb, the company have gone some way today to getting a foothold in the US market , see todays RNS on next post.

cheers GF.

Babco Europe Limited Distribution Agreement

Blavod Wines & Spirits plc (AIM:BES), the AIM quoted owner of premium drinks brands, announces that it will no longer be distributing the Mickey Finn brand in the UK on behalf of Babco Europe Limited.

This move is in line with Blavod's business strategy to progressively end its activities distributing third party brands and focus on the development of its own premium brands which include Blavod Original Black Vodka, Blackwoods Vintage Gin, Blackwoods Vodka, Diva Vodka, Jago's Cream liqueur and RedLeg Spiced Rum

In the last financial year ended 31 March 2013, sales net of duty of the Mickey Finn brand amounted to approximately £1,439,000 representing approximately 38% of group sales net of duty, however whilst the contribution to group profits before financing costs was £162,000, a significant portion of the Group's financing costs which totalled £119,000 in the period were incurred as a result of the distribution of this agency brand.


more...

Change of Name

The Board is pleased to announce that the Group's name has been changed to Distil plc ("Distil" or the "Company").

Dealings under the new name will commence at 8.00 am on 30 April 2014. The TIDM (ticker symbol) has been changed to "DIS" for the Company's ordinary shares.

The ISIN in respect of ordinary shares remains unchanged.

The Directors believe the name Distil better represents the nature of the business which is now predominantly a distilled spirits businessand also reflects the fact that the company is now entirely focused on designing and marketing aportfolio of its own brands following the acquisition of the Blackwoods, Diva and Jago's brands last year and the launch of RedLeg Spiced Rum.

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