Evans & Tate Ltd has reported a full year loss of A$49.8m compared to a net profit of A$7.6m last year.

Operating revenue for the year was up 18% to A$86.1m. However, the company was hit by one-off charges of A$45.2m and year-end adjustments of A$11.4m after it commissioned an independent valuation of its wine inventory. It has been working closely with a consultancy firm to review the carrying value of its assets.

In a statement today, the company said that following the review it had decided that the inventory write-downs are required primarily due to the deterioration in bulk wine prices for certain categories across the industry.

It added: "The company remains committed to its inventory reduction programme and will reduce its 2006 vintage intake. The company has also instigated an orderly process for the sale of its unallocated wine inventory that is expected to be completed by the end of October 2005."

E&T chairman John Hopkins called the results disappointing.

"The board recognises that Evan's & Tate's performance for the year ended 30 June 2005 is unacceptable and it is determined to take the necessary steps to return the company to profitability as soon as possible."