By James Atkinson
ASX-listed winemaker Brand New Vintage, owner of the Sticks and One Planet wine brands, is currently in breach of its finance facility's loan covenants and is depending on the sale of its Yarra Valley winery to repay the debt.
BNV this week said that if the winery sale flagged last year does not proceed, it will have to continue to rely on the support of its financier by negotiating a new loan facility agreement.
It would also have to consider various other measures to generate sufficient cash flows from its operations as well as the continued rationalisation of its asset base.
"[If] the above matters do not eventuate, there is significant uncertainty whether the consolidated entity will continue as a going concern and whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report," the company said.
BNV nonetheless returned to the black in the first half of the financial year, making a profit after tax of $116,748. This compared to its loss after tax of $1,079,579 in the six months to 31 December, 2010.
|
Recent articles: Dan Murphy’s next to youth centre rejected Woolies launches 100 own brand liquor lines in six months Bar licensee fails to overturn suspension |
"The first six months of the financial year has seen a positive turn around in net profit after tax due to the continued focus on building the Sticks brand and a continued reduction in general overheads," the company said.
"At this early stage, vintage 2012 in the Yarra Valley looks positive, with yields estimated to be approximately 20 per cent below average and quality above average."