By Andy Young

Australian Vintage Limited (AVL) has issued a trading update, which highlights that last month's Brexit vote in the UK, will impact the company's profit.

Prior to the vote, which saw the UK decide to leave the European Union, AVL said that it was on track to achieve net profit growth of 10 to 15 per cent on last year’s result of $7.1 million.

But in a statement to the ASX, AVL said: “The recent significant unfavourable movement in the GBP has meant that AVL will need to account for an unforeseen unrealised foreign exchange loss of approximately $1.0m (after tax) as at 30 June 2016. This unrealised loss is based on the exchange rate impact on our UK based working capital.”

AVL’s chief executive, Neil McGuigan, said: “It is unfortunate that the recent events surrounding the Brexit vote has led to AVL’s profit being adversely affected. This event was outside of our control and is disappointing as our company was on track to achieve a 10 per cent to 15 per cent profit growth on last year.

“We expect the uncertainty in the UK to settle down in the short to medium term and are continuing to execute the growth plans for our branded business which we expect will drive improved cash flow in the near future.”

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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