Sparkling wine producer Gusbourne increased sales by 40% to £266,000 in the first half of the year but continues to make losses.

The company boosted its gross profit by 56% to £94,000, although this is hampered by limited amounts of stock.

It widened operating losses by 10% to £600,000, although it said this was expected and part of its long-term development strategy.

The firm, whose major shareholder is Tory donor Lord Ashcroft, invested £124,000 in its 40.1 hectares of vineyards near its estate in Appledore, Romney Marsh, and another 21.9 hectares in West Sussex.

This was down on £565,000 spent last year and part of an “ongoing investment” in its crops.

The company also shelled out £198,000 on machinery and equipment for the vineyards and the winery, down from £380,000 in the same period last year, although cash spend on buildings was up to £372,000 from £56,000 in 2015.

It won two platinum medals at the Decanter World Wine Awards and two gold medals at the 2016 Sommelier Wine Awards.

It dispatched its first consignment to the US in July as part of a deal with importer Broadbent Selections.

Chairman Andrew Weeber said: “I am delighted with the progress the company continues to make in line with our long-term development plans.

“Our increasing revenues, which remain limited to stock availability, reflects both the expansion of wine production as well as increasing customer demand for our award winning sparkling wines.

“I am particularly proud of the Gusbourne management team who combine their professionally qualified skills with passion and enthusiasm to produce and deliver the highest quality Gusbourne wines to our growing customer base.”