25th Jun 2020 12:30
(Alliance News) - Gusbourne PLC on Thursday posted a widened loss for 2019, adding that while Covid-19 hurt a strong start to 2020, it has started to see an increasing demand for wine in some channels.
Shares in the winemaker were trading 2.2% higher at 64.92 pence each on Thursday afternoon in London, but 24% lower than at the start of the year.
For 2019, Gusbourne posted revenue of GBP1.8 million, up 31% from GBP1.4 million in 2018. However, a rise in expenses resulted in a pretax loss of GBP2.6 million, widened from GBP1.8 million in 2018. Administrative expenses rose to GBP2.9 million from GBP2.2 million reflecting increased expenditure on sales and marketing costs.
Turning to 2020, the Kent-based company said while trading in the first three months of the year was strong with revenue ahead of expectations, the emergence of the Covid-19 virus hurt its distribution channels. However, it said the implementation of new sales initiatives has resulted in increasing demand for wine in some channels, especially online.
Looking ahead, Chief Executive Charlie Holland said: "Whilst the immediate outlook for sales remains uncertain, the directors remain confident about the group's longer-term prospects beyond Covid-19. Under stress test scenarios, we have run the group could withstand a material and prolonged adverse impact on revenues and continue to operate within the available lending facilities."
In June, Gusbourne entered into a GBP10.5 million asset-based lending facility with PNC Financial Services UK Ltd, with the new facility used to refinance some of its debts and provide additional liquidity.
By Ife Taiwo; [email protected].
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