Australian financial analysts believe battered wine group Southcorp’s new chief executive John Ballard to be planning a write down of up to A$600m following five profit downgrades in the past year, the last accompanied by cancellation of the interim dividend.
The company refused to comment.
Such a writedown, predicted by analysts at between A$400-600m would enable Ballard and incoming chief financial officer Steve McClintock to clear the books and rebuild the battered group which includes the Rousemount, Penfolds, Lindemans and Wynns brands.
A sum of this order would also wipe out most of the A$679m as goodwill on the books resulting from the company’s purchase of Rosemount in 2001.
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By GlobalData
