English sparkling-wine producer Gusbourne today (30 September) reported a decline in half-year net revenues and rising losses.

The London-listed group booked a 3% fall in net revenue to £3.2m ($4.4m) for the six months to the end of June. Its loss for the period attributable to owners of the parent stood at £1.9m, against a £1.4m loss in the corresponding period a year earlier.

In July, Gusbourne’s majority shareholder, Lord Ashcroft, told the company’s board he wanted to review the “strategic options” for his 66.76% stake in the business.

Net revenue from “UK trade” sales dropped 22% to £1.3m. However, direct-to-consumer sales grew 22% to £1.1m and sales outside the UK were up 13% at £840,000.

CEO Jonathan White said Gusbourne had seen “further strategic progress in the first half of 2024 despite a challenging market backdrop that has resulted in more difficult trading conditions in some areas of our business”.

He added: “Important highlights include the group's strong performance in our direct-to-consumer channel which reflects the success of our award-winning cellar door operations and the significant progress we are making to grow the brand's digital presence.

“International growth during the period has also been particularly encouraging with sales growth of 13% underpinned not only by the growing global demand for premium English wine across the 37 countries Gusbourne now distributes to but also by the increasing number of relationships we now have with global travel-retail partners which continue to enhance our performance.”

Gusbourne reported an adjusted EBITDA loss of £330,000, an improvement on a loss of £580,000 a year earlier.

The group’s net debt as of June stood at £20.5m, higher than the £15.2m booked a year earlier. Gusbourne said the increase was due to “further” investment in inventory.

“Looking forward to the second half of the year, the macro-economic environment remains complex with consumer confidence affected by inflationary pressures and cost of borrowing in many markets,” White said.

“At the same time, consumer interest in Gusbourne wine and English wine generally continues to grow across the globe and this combined with the ongoing progress we continue to make against our strategic priorities continues to give the board confidence in the group’s long-term prospects.”

A company 100% owned by Lord Ashcroft also holds a £20m long-term secured deep discount bond. “I am flexible as to the outcome,” he said in July when he announced he wanted to review his options. “It may be a sale. It may be a strategic merger with a similar company. It may be a capitalisation or restructuring of all or part of my debt.”

If all of Ashcroft’s shares were to be acquired, it would trigger a mandatory offer for the remaining issued shares in Gusbourne.

Earlier this month, Gusbourne forecast a lower yield for its 2024 harvest, citing poor weather in the UK.

The vintner said it expected “to produce significantly less fruit” in 2024 and noted that a wet growing season and “challenging conditions” had impacted its vineyards.

The group said that its harvest had been affected by mildew this year, particularly its vineyard in West Sussex in south-east England.

In 2023, Gusbourne generated revenue of £7m ($9m), up 13% year on year. UK trade sales were up 13% to £3.5m, DTC net revenue increased 18% to £2m and international sales grew by 7% to £1.5m.

Its adjusted EBITDA was a loss of £669,000, down from £1.1m the previous year. It booked a loss attributable to owners of the parent of just under £3m.