The New Zealand Wine Company

Significant Turnaround for Foley Family Wines Limited

Foley Family Wines Limited (FFW) announces a Profit for the period after income tax of $1,725,000 on revenue of $30,910,000 for the Group and $36,000 on revenue of $27,229,000 for the Parent for the year ended 30 June 2013.  This is the first result released since the reverse acquisition of The New Zealand Wine Company Limited (NWC) by Foley Family Wines NZ Limited in 4 September 2012.

   

The Chief Executive Officer, Mr Mark Turnbull, said “The 2013 year was a turnaround year and the business is now well positioned for growth.”

   

“The Directors are pleased to report that the cash flow generated from the Parent operating activities totalled $6,433,000 compared with $1,746,000 for the previous year. This enabled the business to fund (post merger) $3,312,000 in capital expenditure, repay $2,226,000 of bank debt, and end the year with $2,215,000 cash on hand. Further, the business met its peak working capital requirements in July (for grower payments) without the requirement for using any overdraft facilities.”

 

“The 2013 harvest of 5,698 tonnes was 1,229 tonnes or 27.5 % higher than last year’s 2012 grape intake of 4,469 tonnes.  The winemakers believe that the quality of the vintage is exceptional and we are committed to producing some world class wines in the year ahead.” said Mr Turnbull.

   

The Directors have resolved that no final dividend will be paid for the year ended 30 June 2013, which is consistent with the decision not to pay an interim dividend. The policy of the Board is to evaluate present and projected cash flows, sustainable underlying earnings and, if prudent, declare an annual dividend subject to current and future capital and acquisition expenditure requirements.

   

The Annual General Meeting of the Company will be held in Blenheim on Thursday 21 November 2013.

   

Authorised for public release.

   

For further information please contact:

Mark Turnbull

CEO, Foley Family Wines Limited

PO Box 67, Renwick, 7243, Marlborough

Tel: +64 21 714 885

Email: mark@ffw.co.nz