29th Apr 2015 10:21
LONDON (Alliance News) - Gusbourne PLC, the English sparkling wine producer controlled by pollster and former Conservative party treasurer Lord Ashcroft, Wednesday reported a wider loss for 2014, as investments it is making in growing the business offset an increase in revenue driven by higher sales of its wines.
The company reported a pretax loss of GBP1.1 million for 2014, compared with a GBP666,000 loss in 2013, as higher costs offset a rise in revenue to GBP434,000, from GBP129,000.
It spent GBP588,000 on vineyard establishment in 2014, up from GBP418,000 a year earlier, and GBP137,000 on vineyard and winery equipment, down from GBP538,000 a year earlier. Administrative expenses also rose as it took on more staff and invested in sales and marketing and the development of its brand.
Gusbourne has already reported that the 2014 harvest was very successful thanks to favourable weather, and said the resulting wine production has considerably added to the stocks it will sell in the future.
It planted a further 50.7 acres of vineyards in Kent in 2014, and said the plantings it made in West Sussex in 2013 are progressing well and expected to produce an initial harvest this coming autumn.
The company raised GBP1.8 million in a share placing last November to help fund its development, and confirmed Wednesday that it will need to raise further equity or debt to achieve its goals.
"The production of premium quality wine from new vineyards is, by its very nature a long term project. It takes four years to bring a vineyard into full production and a further four years to transform these grapes into Gusbourne's premium sparkling wine. Additional funding will be sought by the company over the coming few years to invest in additional vineyards, winery capacity, and stocks of wine as well as brand development, in line with its development strategy," it said.
Gusbourne shares were up 0.8% at 65.00 pence Wednesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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