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Gusbourne Plc sales surge 56% in 2014, but posted a £1m loss for the year

Published:  29 April, 2015

English wine company Gusbourne Plc sales surged 56% for the financial year 2014, but because of expansion investments the company also reported a net loss of over £1m for the same period.

Andrew Weeber, the chairman of the Gusbourne Plc, said: "I am pleased to report that 2014 has been a successful year of further growth and development for the group, in line with our long-term plans."

Andrew Weeber Gusbourne, chairman of Gusbourne EstateAndrew Weeber Gusbourne, chairman of Gusbourne Estate

The figures cover the financial year ending on 31 December 2014, and includes the first full year financial results that Gusbourne Plc posted following its acquisition by Shellproof Plc for £7m in 2013. Shellproof subsequently changed its name to Gusbourne Plc and was re-admitted to Alternative Investment Market of the London Stock Exchange. The deal was completed on 27 September 2013.

Gusbourne sales hit £434,000 for 2014 compared to £129,000 that were reported for 2013.

However, the company sunk a large amount of capital into expanding their vineyards and production capacity to meet the growing demand for English wines. Loss before taxes was reported £1.104m. The company emphasised that this was in line with the long-term expansion strategy of the company.

Ben Walgate to celebrate Gusbourne's 10 year anniversary with DWCC sponsorship

Ben Walgate Gusbourne Estate Ben Walgate Gusbourne EstateBen Walgate to celebrate Gusbourne's 10 year anniversary with DWCC sponsorship

Despite the short-term loss, the company plans to further expand according to the chief executive Ben Walgate. He said: "I am delighted to report the continued and very pleasing progress of the group during the year in line with our long term strategic development plans. We have increased year on year sales and further developed our distribution channels."

The expenditures include the establishment of additional vineyards in Kent and West Sussex, which cost £588,000 as well as an additional investment of £137,000 for more production equipment.

The vineyard expansion which was completed in May 2014 will add an additional 50.7 acres of vineyards to the Estate production once the vines reach maturity.

The company also invested £418,000 in 2013 in vineyard expansion which are expected to come online this autumn.

Andrew Weeber Gusbourne, chairman of Gusbourne Estate