Gusbourne distribution hit by Covid-19 but season starts well

(Sharecast News) - Gusbourne said the Covid-19 crisis had affected its distribution channels but warm spring weather had given the English sparkling winemaker a good start to the growing season.
Reporting 2019 results Gusbourne said it made a strong start to 2020 with revenue ahead of expectations but that it was affected by the Covid-19 lockdown from the end of March. The company said its vineyard and winery operations had continued to work through the coronavirus lockdown and that it had furloughed sales staff.

Gusbourne reported an operating loss of £2.16m for the year to the end of December compared with a loss of £1.42m a year earlier. Net revenue rose 31% to £1.65m and the cost of sales increased to £735m from £560m.

Chief Executive Charlie Holland said: "Since the end of March 2020, the company's distribution channels have been impacted by Covid-19. The company has engaged in a number of new sales initiatives to mitigate this impact and the directors are pleased to report increasing demand for wine in some channels, especially online."

Holland said the 2020 growing season started slightly later than average but warm spring weather had produced "strong, even growth and high potential fruitfulness". Gusbourne shares rose 2.2% to 64.92p at 10:42 BST.

Gusbourne produces sparkling wine from vineyards in Kent and Sussex. It agreed an asset-based lending facility of £10.5m with PNC Financial Services on 2 June to refinance debts and provide extra liquidity.