Conviviality hails 'strong' first half results
Conviviality, the owner of Bargain Booze and Wine Rack, saw its group pre-tax profit excluding exceptional items edge up 2.8% to £3.3 million in the first half of its financial year.
In the 27 weeks to 1 November 2015, group revenue climbed by 38% to £252 million while EBITDA was 43% higher than the same period in the previous year at £6.5 million.
Sales at its retail arm edged up 0.8% year-on-year while there was an improvement in like-for-like retail sales which were down 1.3%. EBITDA was in line with last year at £4.5 million.
Having acquired the Matthew Clark drinks supplier on 7 October 2015, the group said the integration is progressing ahead of plan.
Conviviality is now on track to meet its full year net store opening growth target of 50 stores.
The group said it enjoyed strong Christmas trading in the two peak weeks to 3 January 2016 with group sales growth of 13% above last year.
Like-for-like retail sales during the two week period rose by 1.1% with Wine Rack sales up 11.1%. Champagne and sparkling wine sales were particularly buoyant with an increase of 31%.
Diana Hunter, chief executive of Conviviality, said: “This is a strong set of results during a period of significant transformational change.
“With Matthew Clark we now have a firm foundation in the expansive on-trade market from which to build on, and our success over the important Christmas period gives us confidence that the second half will deliver further growth.”