Wine group Australian Vintage has secured fresh support from its bank after outperforming a tough wine market and improving its financial position in the second half of its fiscal year.

Net sales for the 12 months to the end of June rose by 9%, said Australian Vintage in a trading update yesterday (13 August).

The firm said it has extended its debt facility with its major bank for an extra two years.

A strategic review completed earlier this year has "reshaped the company", the firm said, after it earlier reported a "disappointing" first half.

"This combination of higher sales, reduced debt and lower costs generated a A$29m (US$24.5m) positive operating cash flow in the second half of the financial year compared to a negative operating cash flow of $1.1m for the same time last year," said group CEO Dane Hudson.

Net debt has fallen from $169m at the end of December to $145m at the end of June, he added.

Australian Vintage said it expects to meet market expectations when it reports its full-year results on 26 August.