Australian Shareholders Association has called for the former head of troubled Western Australian winemaker Evans and Tate to use this year's annual general meeting to apologise to shareholders for the company's performance, the ABC's online news service has reported today.
The ABC said ASA spokesman Gerry Pauley says shareholders deserve a detailed explanation as to what has caused the company's problems which have included bank appointed administrators and an annual loss of $50 million.
"The company made an announcement in May that Evans and Tate was outperforming the industry," Mr Pauley said.
"Now we find we're looking at horrendous losses, they lost $50 million in the year to June.
"I think Franklin Tate owes shareholders an apology."
E&T's 2005 annual general meeting will be held at:
Venue: Novotel Langley Perth Hotel
221 Adelaide Terrace, Perth, Western Australia
Date: Wednesday, 30 November 2005
Time: 3.00 pm (AWST)
In other recent news about E&T:
Peter Wallace current head of corporate at Bell Potter Securities, has been appointed as a non-executive director at two local ASX-listed companies. Mr Wallace will join the boards of winemaker Evans & Tate and industrial services company Novacoat Holdings. He fills a board vacancy at Evans & Tate following the retirement of Ross Chappell, who has stepped down after more than 10 years at the group. His role at Novacoat will commence from October 25. Mr Wallace is also a non-executive director Tethyan Copper, RuralAus Investments and HBF Health Fund.
Evans & Tate will write down its wine inventory by about $A16.5 million for the year ended June 30 2005 after findings from an independent wine valuation were accepted by the company's board this week.In late June, Evans & Tate announced it would have to write down its inventory by between $A8 million and $A10 million. A statement released by Evans & Tate on the same day detailed that: - the total level of inventory write-down for the year would be finalised once the company's internal review was concluded; - a write-down of $4.3 million in goodwill relating to Oakridge Vineyards would be required (announced on June 28); and - a review of the carrying value of the company's intangible assets was incomplete but the board had been advised that further write-downs in in-tangible assets and likely provisions would be required for the year ended June 30 2005. Evans & Tate also said it would not be in a position to declare and pay a final dividend.Lead director John Hopkins said the board decided the company would not have retained earnings from which to pay a final dividend to preference or ordinary shareholders. Evans & Tate intends to announce its full year results on September 13.
