Huge losses fail to deter Yarraman from acquisition

Published: 23 July, 2008

Margaret River winery Evans & Tate has lost nearly A$80 million (32.2m) in the past 18 months, as it unveiled half-yearly figures that again show a deficit.

Evans &?Tate said the European business continues to be challenging' and that it was disappointed' with the sales performance. Revenue was down 9%, mainly due to lower sales in the UK, which reflected slower-than-expected key chain listings for the company's brands.

The past six months, with a loss of A$6.7m (2.3m), did at least show an improvement on the previous full-year results, with profits down A$63.9m (25.7m). It seems unlikely to deter potential buyers, Yarraman Estate. Chief executive of the Hunter winery Wayne Rockall insisted that taking over Evans & Tate would signify the first of several' acquisitions made by the company in the New World.

Evans & Tate now seems to have no option but to accept the offer from Yarraman, which values the company at A$148.3m (60m).

Trevor Hart, a partner with accountants KPMG, said that based on last year's Evans & Tate full-year report, there is significant uncertainty whether the company will be able to continue as a going concern'.

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