Conviviality's sales and profits more than double in 'transformational year'

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Group adjusted pre-tax profits up 124% to £21.7m
Group sales up 137% to £864.5m
Conviviality retail sales up 0.8% to £366.9m in the 53 weeks, and adjusted EBITDA up 0.7% to £14.6m
Franchisee LFLs retail sales slip 1.3%

Bargain Booze owner Conviviality has more than doubled its sales and profits following a year of fruitful acquisitions and appointments.

The business, which also owns the Wine Rack fascia, described last October’s acquisition of drinks supplier Matthew Clark as “transformational”, as group sales rocketed 137% to £864.5m in the year to May 1.

The group also posted a 124% jump in adjusted pre-tax profits to £21.7m.

In Conviviality’s retail division, adjusted EBITDA crept up 0.7% to 14.6m, while sales increased 0.8% to £366.9m.

Like-for-likes generated through its franchise stores fell 1.3% across the year, although this marks an improvement on the 1.7% decline in its prior financial year.

Conviviality chief executive Diana Hunter told Retail Week the like-for-like decline was driven by the performance of older Bargain Booze stores.

She insisted that stores operating under the Bargain Booze fascia that had opened since 2012 were “in positive like-for-like territory”. Like-for-likes within its Wine Rack business advanced 3.2% during the year.

Conviviality, which dropped the word ‘Retail’ from its name following completion of the Matthew Clark deal, said the £60m acquisition of Bibendum was also “complimentary” to the business, and added that integration plans for both businesses were running “ahead of expectations”.

Earlier this year, Conviviality edged up its profit forecast after hailing the impact of a “transformational” year for the group.

The wine specialist put a new management and organisational structures in place during the 53-week period, as well as opening 126 new stores and closing 34 to bring its portfolio to 716.

Hunter said: “The experienced management team in place, coupled with the well invested and compelling businesses with market leading expertise and current trading in line with expectations, gives the board confidence for the future.”

She added: “We look to the year ahead with a stronger and more resilient business able to thrive in uncertain economic times.

“It is our intention to continue to deliver against our integration plan during the year, ensuring the benefits are realised from our transformational acquisitions”