KEY POINTS:
Oyster Bay Marlborough Vineyards today reported its December half year net loss widened to $707,000 from $299,000 a year earlier.
Revenue from ordinary activities rose 7 per cent to $4.9 million.
Chairman Bill Falconer said the reported fair value of the company's biological asset, reflecting the level of maturity of the crop at the end of the period, was less than the operational costs incurred during the period.
He said legal disputes with Peter Yealands Investment Ltds ('PYIL') over costs associated with the takeover actions in 2006 remained unresolved, and had been compounded by a claim by PYIL that OBMV behaved in a manner oppressive to the minorities. A preliminary court hearing on these matters is scheduled for July.
The company's non-current assets of land, trellises, vines, buildings, plant and equipment have been valued up nearly $5m to $85.2m.
Mr Falconer said the vineyard escaped an extreme frost in November by mobilising helicopters to stir the air.
"That aside, growing conditions have been favourable during the year and by Christmas fruit set was excellent.
"Since then the fruit has developed well and provided there are no serious weather variations during March we can look to the vines producing to their potential."
OBMV shares last traded at $2.60. They have traded between $2.30 and $2.90 in the last year.
- NZPA
