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Gusbourne PLC (LON:GUS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Gusbourne PLC, together with its subsidiaries, produces, distributes, and sells English sparkling and still wines under the Gusbourne brand in the United Kingdom, the United States, and internationally. The UK£38m market-cap company announced a latest loss of UK£3.0m on 31 December 2023 for its most recent financial year result. As path to profitability is the topic on Gusbourne's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Gusbourne

Expectations from some of the British Beverage analysts is that Gusbourne is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of UK£200k in 2026. So, the company is predicted to breakeven approximately 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 63% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Gusbourne given that this is a high-level summary, however, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Gusbourne is its debt-to-equity ratio of 172%. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Gusbourne to cover in one brief article, but the key fundamentals for the company can all be found in one place – Gusbourne's company page on Simply Wall St. We've also put together a list of essential aspects you should further research:

1. Historical Track Record: What has Gusbourne's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Gusbourne's board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.