Gage Roads' sales news drives up stock

Local brewer Gage Roads has told the ASX that recent share price gains are most likely due to positive news presented to the market about its expansion plans on the back of strong sales.

The ASX queried the company's recent gains after the stock jumped almost 42 per cent from its closing price of six cents on Friday to an intra-day high of 8.5 cents per share yesterday.

Gage Roads said the price spike was most likely driven by it's positive market update on Friday, when it mentioned the Gage directors had resolved to bring forward an expansion of its brewing capacity, to deliver a capacity of one million cases per annum, after better than expected initial sales of new brew Dry Dock and growth in sales revenue and volume as compared to the previous year.

As part of Friday's announcement, the company said first-quarter sales volume had grown 109 per cent, with revenue up 106 per cent on the previous year's comparative results.