Delegat's down 12pc

Winemaker Delegat's Group has reported a 12 per cent decline in net profit to $13.85 million in the six months to December 31.

Earnings before interest, tax, depreciation and amortisation fell 20 per cent to $27.5 million.

Revenue rose 6 per cent to $134.92 million. The company said it had a significant doubtful debt from a British retailer in administration.

Sales and promotion costs also helped push operating costs up 16 per cent.

The company will not pay an interim dividend and expects the challenging business environment to prevail for the rest of the 2010 reporting year.

- NZPA