Company Background
ABOUT BANKSIA WINES
Contents
The Company
Banksia Wines Limited is an Australian wine company listed on the Australian Stock Exchange Limited. (ASX Code: BNK)
Adelaide-based, the Company operates in the medium-size segment of the wine market, servicing significant demand for its premium wines in both domestic and export arenas. The United Kingdom and United States account for about 80% of the Company's export volumes.
Ultra Premium, Super Premium and Blended Premium brands within the parent Banksia Wines group are housed within the renowned Tatachilla, St Hallett and Hillstowe labels.
Some 36 hectares of vineyards in South Australia are owned outright by the Company, which sources the majority of its grapes through long-standing agreements with contract growers.
History
Banksia Wines formed in July, 2000 with the merger of St Hallett in the Barossa Valley to the north of Adelaide, and Tatachilla at McLaren Vale, south of Adelaide.
The merger brought together widely recognised icon brands such as Old Block Shiraz and Foundation Shiraz, and super premium Barossa and McLaren Vale varietals and value blends such as Poacher's, Gamekeepers, Growers and Partners.
ASX-listing
The Company listed on the Australian Stock Exchange on 15 December 2000, capitalised at A$52 million.
The listing followed an oversubscribed Initial Public Offering to raise $25 million through the issue of 29.5 million ordinary shares at $0.85 each.
Board
Banksia Wines has a six member Board, chaired by Sydney businessman, Mr John Lamb. The Deputy Chairman is Mr Tony Johnson, Partner in an Adelaide legal practice. (Refer Corporate Contacts directory for more details).
Management
The senior management team of Banksia Wines is highly experienced and has the specific financial and marketing skills necessary to grow the business as a strongly driven, well managed, transparent and highly accountable public company.
Keith Smith - Managing Director
More than 20 years involvement in the wine industry. Co-founded Tatachilla in 1994. Previous CEO of Kaiser Stuhl and Wolf Blass Wines. Director of State Development in SA for three years. Is Chair of Anglicare SA.
Bob McLean - Executive Director
Involved in the wine industry since 1972. Was Managing Director of St Hallett. Previous senior marketing and promotional roles at Petaluma and Orlando Wines. A former Director of the SA Tourism Commission. Is a Director of Wine Australia.
Chris Milner - Chief Financial Officer
Strong background in public and private sector finance and accounting. Has held senior financial positions with ETSA Corporation and Boots Pharmaceuticals in the United Kingdom and South Africa. Was CFO of Camtech Corporation Limited.
Carey Weston - General Manager, Sales and Marketing
A former Export Director and Marketing Manager - Wines for the Orlando Wyndham Group, which he joined in 1988. Is a regular Committee Member of the Australian Wine Export Council.
Paul Zerella - General Manager, Operations and Trading
A member of one of the families behind the resurgence of Tatachilla and former General Manager of that company. Has considerable experience in export market development.
Michael Fragos - Group Chief Winemaker
A member of the well-known Fragos wine making family at McLaren Vale. A University of Adelaide science graduate, and oenology diploma graduate from Roseworthy Agricultural College. Michael was a finalist in the 2000 Qantas Winemaker of the Year award.
Honi Dolling - National Sales Manager, Australia and New Zealand
Has many years experience in the wine and packaging industry. Was most recently Sales Manager for the Australian and international operations, particularly in the United States, of world-class wine label company, Precision Labels.
Shareholders
The Company currently has approximately 2,700 shareholders, with the Top 20 shareholders, as at 1 September 2001, accounting for 66% of the 61 million ordinary shares on issue.
There are 4.95 million options issued, the majority expiring on 12/12/03 and the remainder two years later.
Maiden profit
Banksia Wines achieved a maiden full year net profit after tax of $2.4 million, 17% above forecast, on total revenue of $31.2 million for the full financial year to 30 June, 2001.
Dividend
A fully franked dividend of 3.2 cents per share will be paid on 31 October 2001, for the year to 30 June 2001.
A dividend reinvestment plan is also available. (Refer "Financials" directory)
Acquisitions
Banksia Wines acquired the award-winning Adelaide Hills-based Hillstowe Wines for $3.67 million in May 2001 - its first acquisition since listing.
Production
The Company's 2001 grape crush totalled 10,584 tonnes - 37% higher than the previous year and ahead of prospectus forecasts.
Sales
Total case sales for the 12 months to 30 June, 2001 of 330,000 cases was 36% stronger than the previous year. Exports to 17 overseas markets accounted for 192,000 cases of this volume.
The Company also makes bulk wine under contract.
Distribution
Banksia Wines distributes its product through a distribution network comprising major distributors operating in the Australian and overseas market sectors. These include D&D Wines International in the UK, Montana Wines in New Zealand and Australia, Rock Creek Wine Merchants and Negociants in the United States, as well as Negociants Australia in the domestic market.
Awards
During 2000/2001, Banksia Wines won 11 trophies, 36 gold, 47 silver and 138 bronze medals at major Australian and international wine shows.
Future
The Board of Banksia Wines is focused in 2001/2002 on developing premium wines representing the true character of Australia's premiere wine regions. This includes developing Tatachilla as the Company's world-brand, underpinned by the Breakneck Creek label; increasing resources behind St Hallett's status as a Barossa Valley leader; and for Hillstowe, ensuring the representation of the prestige quality of the Adelaide Hills.
The Board also reviews opportunities for premium regional brand acquisitions, including the acquisition of and development of volume drivers to enhance returns on investment.
2001 AGM
The 2001 annual general meeting of Banksia Wines Limited will commence at 10.30 a.m. on Thursday, 22 November 2001, at Hillstowe Wines, Main Road, Hahndorf, South Australia.
