The Western Australian wine company, Xanadu Wines Ltd, posted net profit of A$2.15m ($1.2m) for the year to the end of June 2002, representing an increase of 183% from the previous year. The surge in profits was attributed to an increase in exports and the addition of acquisitions in South Australia.

"The company has concentrated on international expansion, the development of export markets and the creation of strong distribution networks," said Xanadu's managing director, Andrew Moore.

Sales revenues rose from A$6.3m to A$16.4m. The company is forecasting continued rapid growth in the UK and said the US market, where its wines are handled by William Grant & Sons, also offers growth potential.

The last year or so has seen Xanadu expand extensively beyond its Margaret River base. Last year, the company acquired the Norman's Adelaide Hills winery including the Chais Clarendon and Old Vine brands and in July it bought the Barossa Valley wine company, Next Generation Wines. Xanadu registered annualised sales volumes of 225,000 cases in 2002, against 44,000 cases in 2001. It is targeting volume sales of 400,000 cases in the coming year.