8 Jun 2010

Oyster Bay predicts loss this year

9:31 pm on 8 June 2010

Grape grower Oyster Bay Marlborough Vineyards is forecasting a full-year loss of about $900,000, because of a slump in grape prices.

The result will be a turnaround from the $1.5 million profit it made in the year to June last year.

The company, which sells all its harvest to majority owner Delegats, says it produced 5600 tonnes of grapes this year, down 9% on the last year.

An average price of $1469 dollars a tonne meant revenue fell 28% to $8.3 million.

Company chairman Sandy Maier says that will result in an after-tax operating loss of about $900,000, before any vineyard revaluations.

Meanwhile, Mr Maier says the directors are also in the process of seeking waivers on its banking limits, and have commissioned an investment bank to give advice about the best capital structure for the company.