UK: Cosentino issues downbeat update
Cosentino Signature Wines has issued a downbeat trading update with warnings on low wholesale sales and rising debts.
The Californian wine producer, based in Napa Valley, said sales among US wholesalers had been "lower than anticipated" since 26 September.
The company, listed on London's Alternative Investment Market, warned yesterday (21 November) that the "strong" performance of the Cosentino Brand would fail to offset weakness at the wholesale level.
"Despite the strong retail performance, the disappointing performance of the wholesale division is expected to limit 2006 group revenue to approximately US$8m and EBITDA before exceptional costs to approximately US$800,000," Cosentino said.
Debt had risen to around US$22.5m, Cosentino said, and was expected to rise by a further US$1m over the next two months.
Cosentino has yet to agree on new credit facilities for next year and two board members have agreed to loan the company US$1m while talks on refinancing continue.
To raise cash and stem the rising debts, Cosentino has decided to put a hold on acquisitions and is seeking offers for "certain non-core assets".
Additionally, Cosentino CEO Keith Smith has taken on the additional role of chairman while the company seeks a new chief executive.
Cosentino Signature Wines has posted a massive loss for last year....
Cosentino Signature Wines has secured further backing to finance its debts....
The chief executive of Cosentino Signature Wines has resigned from the company as a condition for the California-based wine group securing a US$3m loan....
Cosentino Signature Wines has been granted a stay of execution on its debt facility....
Cosentino Signature Wines has warned that operating losses for 2006 will come in slightly higher than expected....
The financial problems at Cosentino Signature Wines have led to a key executive leaving the company....
Ailing Californian wine group Cosentino Signature Wines has secured a further two months of debt finance, the company said today (11 December)....
Cosentino Signature Wines has agreed the terms of subordinated loans totalling US$1m from company directors Larry Soldinger and Michael Forman....
- The End of the Road for International Beer Brands?
- Allegro: The shape of things to come at Pernod?
- Comment - Another One Bites Bacardi's Dust
- Pernod Ricard's FY Performance by Region, Brand
- US craft vodka puts squeeze on Pernod's Absolut
- Mast-Jägermeister targets UK off-trade boost
- Pernod bemoans tough FY as sales, profits drop
- ASA bans Jägermeister TV ad
- Bacardi announces CFO switch
- SABMiller exec to become CFO at Beam Suntory