Shares in troubled winemaker McGuigan Simeon (MGW) jumped as much as 14.6% to $1.37 after it said on Tuesday it is trading positively despite difficult conditions and expects to see a small profit in the current financial year.
Stock closed 13.3% or 13 cents at $1.36.
More than 3.5 million shares had changed hands, up from the daily average of 450,000.
This comes after two successive years of losses, largely attributable to drought conditions.
In preparation for its annual general meeting next week, Chairman David Clarke said the Australian wine industry is showing signs of recovery and McGuigan Simeon is well placed to manage the difficult market conditions.
"We have weathered a ‘perfect storm’, three large vintages causing record oversupply and then 2007 saw the lowest vintage for seven years, caused by drought, reduced water allocations, frosts and bushfires," Clarke said.
"Export sales of branded wine are up to 20% and at highest margin we have achieved in some time," he added.
"We estimate the 2008 vintage to come in between 800,000 and 1.3 million tonnes although our view is it will be closer to 1.1 million."
In a statement to the stock exchange, the company said it is focusing on building its brands.
"In the UK, and a number of European countries, out branded sales have got strong momentum.
"We now have four of the top 50 largest brands in England. While Asia is a small market for us, we are now recording double digit branded growth," the company said.
