Ann: Appendix 4C - quarterly and Progress Report , page-3

re: Ann: Appendix 4C - quarterly and Progress... That's an interesting view point. While I definitely agree it's fairly priced, I think on a 2-3 story there is some terrific potential here. I was eagerly awaiting this quarterly for a variety of reasons and I was feeling quite positive after reading.

What I liked about it most was the contract brewing agreements with Treasury Wine Estates Limited for its Pepperjack Hand-Crafted Ale (4.7%) and Sitella Winery for
its Sitella Sparkling Shiraz, and Sitella Sparkling Chenin. A lot has been said about the reliance on Woolies Sail&Anchor products and producing their beers. But on the flip side as another holder pointed out, the access to ALH's pubs and clubs through draft beers is an absolute gem in my view, and this was represented by the 148% uplift in volume of DB sales (albeit from a very small base I would imagine).

I think the Revenue up 15% is a meaningless figure until we see what the actual Profit margins are, and how much of the revenue is allocated in a figure of costs. The most pleasing figures in my view are the improved volumes and the increase in it's craft beer sales. Once the capital expansion program is finished I cannot see why if these beer volumes improve at the rate they are going, then Gage Roads should be able to grow its profitability going forward. A lot rest's on management being able to deliver on what they promise, but for my view, they have delivered on what they have planned so far.