Blavod seeks takeover tonic

BLACK vodka maker Blavod is in talks about an acquisition that could bring in a 'significant' new shareholder.

The loss-making group said the talks involve a possible all-share acquisition of a spirits business. Discussions were preliminary, it added, 'and there can be no assurance that any transaction will ultimately take place'.

Shares in Blavod were unchanged at 57 1/2p, valuing the business at just under £8.5m. This is well down on the 98p a share, £14m valuation put on the company when it joined the Alternative Investment Market in February 2001.

The black vodka, created by adding an Indian herb, Catechu, is a favourite with fans of Fulham football club. But the business has remained in the red, although its most recent set of results, covering the year to 31 March 2003, showed the loss had narrowed from £1.15m to £581,000.

Chief executive Richard Ambler pointed to a 32% increase in turnover to £1.5m, and said margins had improved significantly. Its US importer closed operations, but Ambler said there were significant opportunities for growth in the US.