Southcorp, the troubled Australian winemaker, has apologised to its shareholders for the dramatic fall in its fortunes. However, despite reassurances, the company’s share price continues to fall.
In a letter to shareholders, chairman Brian Finn said: “On behalf of the board, I apologise to shareholders for an earnings estimate that results in a loss for the company this year, rendering it impractical to pay a final dividend.”
In an accompanying letter new CEO John Ballard asks for patience during the transition the company must now go through.
“I am confident that the issues confronting Southcorp, and which have led to the unacceptably poor financial performance, have been identified and that action has and is being taken,” the Ballard letter says.
The letter went on to say that a review is underway and the findings are due in September, when Southcorp reports its full year profits.
But despite the words, Southcorp shareholders continued to remain wary with selling driving the share price down a further 4c yesterday to A$2.92.
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