Kentish Express Ashford & District
Pollster peer backs vineyards with discount share offering
A winemaker saw 11% wiped off its value after it unveiled plans to raise £4.2 million by issuing discount shares to its investors.
Gusbourne shares fell to 51p on Tuesday of last week after the new offering at a 31% discount, underwritten by its majority stakeholder, Lord Ashcroft, who owns 64% of the business.
The Conservative peer, known for election polling and writing a controversial biography on David Cameron, has also lent the company £1 million.
Directors want to invest the money in developing the vineyard’s brand and increasing wine stocks, as well as adding funding while it waits for its wines to reach maturity.
The company, based in Appledore, also revealed its annual results for 2016, showing sales increased 35% to £640,000 and gross profits grew 47% to £217,000.
Chairman Andrew Weeber said it had been “another successful year of growth and development” after a successful harvest and winning international wine competitions, including two platinum medals at the Decanter World Wine Awards.
However, it made expected pre-tax losses of £1.5 million last year, up 7%, while earnings before interest, taxes and other charges were at a loss of £802,000.
Gusbourne has 231 acres of vineyards across Kent and West Sussex, with the first plantings dating back to 2004 and the most recent in 2015. Mr Webber said trading this year was “in line with expectations”.
Chief executive Charlie Holland said the growing season in 2017 “has started well” but warned of “some minor frost damage” after unusually cold weather in April.
The fundraising plans, which will also allow bondholders to convert bonds into ordinary shares, are subject to approval at its general meeting on Thursday, June 29.