Shares in Australian Vintage (AVG) (the McGuigan wine group) fell sharply yesterday after the company told the market that it looking at more than $10 million in losses for the year to June 30, thanks in part to the impact of the shock Brexit vote in Britain on June 23. The shares fell by just over 7% to 52 cents on the update.
Shares in Australian Vintage (AVG), the owner of McGuigan wines and a string of other brands, fell 5% to 38 cents yesterday after the company revealed a disappointing update on the 2015 vintage and its impact on the company’s finances.
Shares in troubled winemaker McGuigan Simeon (MGW) jumped as much as 14.6% to $1.37 after it said on Tuesday it is trading positively despite difficult conditions and expects to see a small profit in the current financial year.
In the broker’s view the company is unlikely to perform as badly as the current share price suggests, particularly given some water purchases indicate a reasonable warm climate vintage in 2008. The better than previously expected vintage leads the broker to trim its forecast loss for the current year and this supports its upgrade in rating.