MCOZ Cosentino Regs

 

TIDMMCOZ 
 
RNS Number : 9809Q 
Cosentino Signature Wines plc 
12 August 2010 
 

 
 
                          Cosentino Signature Wines plc 
 
                               Operational Update 
 
Cosentino Signature Wines plc ("Cosentino" or the "Company"), the AIM listed, 
ultra-premium brand Napa Valley based wine company, would like to update the 
market on recent developments in the business. 
 
As previously announced, the Company had received two signed term sheets from 
two separate lenders to refinance its current senior and subordinated debt along 
with providing the required working capital necessary to adequately operate its 
business.  Unfortunately, one of the two lenders failed to perform under the 
terms of the term sheet and the Company was therefore unable to complete the 
planned refinancing.  In addition, although the Company's formal forebearance 
agreement with its existing lenders has terminated, the Company continues to 
maintain good relations with them. 
 
Following this disappointment, the Company has been negotiating with a new 
potential lender.  The Company believes that the new potential lender is near 
the completion of its due diligence process. 
 
Operations continued to perform solidly despite the difficult general economic 
environment.  Over the first six months of 2010 wholesale sales increased by 
around 30% over the same period in 2009 and retail sales increased by 4%.  The 
Company has, however, taken the decision to cease its custom crush operations 
due to a lack of space, but with a view to recommencing the operations once the 
refinancing is completed. 
 
Overall gross margins of approximately 71% remain unchanged from the previous 
year and operating expenses have been further reduced by 13% over the previous 
year.  EBITDA for the first six months of 2010 has increased by 34% over the 
EBITDA for 2009. 
 
The Company will update the market as appropriate upon further developments. 
 
Cosentino Signature Wines plc 
Larry Soldinger, Chairman - 001 847 726 8100 
 
Seymour Pierce 
Jonathan Wright - 020 7107 8000 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCZMGMRGZVGGZM 
 

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