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LONDON (Alliance News) - Gusbourne PLC on Monday said it is trading in line with expectations after a "cold" start to the year and widened loss in 2018.
In addition, the AIM-listed company said it has entered into an agreement with Lord Ashcroft KCMG PC, a substantial shareholder in Gusbourne, to receive an unsecured loan facility of up to GBP2.0 million which is repayable at the end of October.
The loan will be used to provide working capital for Gusbourne, it said, and may be drawn down in amounts of no less than GBP250,000. It carries interest on the principal amount outstanding at the rate of 10% per annum and, if the loan is not repaid by October 31, interest of 15% per annum thereafter.
For 2018, the sparkling wine producer said its pretax loss widened to GBP1.8 million from GBP1.6 million the year before, as operating expenses grew to GBP2.3 million from GBP1.8 million. This is due to planned increased expenditure on sales and marketing costs reflecting continuing investment in the development and growth of the business.
Gusbourne's revenue rose to GBP1.4 million from GBP1.1 million reported in 2017.
Looking forward, the company said its growing season in 2019 has started slightly later than last year, due to a cold start to the year.
Current trading is in line with expectations, Gusbourne said, with warm spring weather leading to strong even growth and high potential fruitfulness.
Gusbourne shares were trading 0.7% lower on Monday at 60.05 pence each.