Virgin Wines says it is “optimistic” about its prospects after it posted a revenue increase in its latest results.

Virgin Wines delivery box

Virgin Wines said its customer base ‘remains active and loyal’

In the six months to December 29, 2023, total revenue increased 2% to £34.4m, up from £33.6m in the same period of the previous year.

Underlying EBITDA soared 122% to £1.76m, up from £0.75m over the same period last year.

Virgin Wines’ performance was said to be underpinned by a “resilient business model” and the introduction of “strategic initiatives”.

Its Warehouse Wines proposition is showing “encouraging” early results with 2,000 customers, while its new customer conversion rate is up 22% year on year.

A brand refresh is also complete and being rolled out across its channels.

The group said it had a positive half-year performance and it has confidence it can meet full-year profit expectations.

It will continue to look at growth opportunities through new ventures such as Warehouse Wines, mergers and acquisitions, and building organic growth through existing channels.

Virgin Wines chief executive officer Jay Wright said: “We are pleased to report a positive first-half performance, with the underlying business performing well including through the peak Christmas period, and the introduction of our key strategic initiatives better positioning the company to achieve further growth into the future. 

“Our customer base remains active and loyal with cancellation rates continuing to trend positively despite macroeconomic uncertainties. 

“Looking ahead, we remain optimistic about the prospects of the group. Warehouse Wines, our new proposition, has delivered encouraging early results, bringing in almost 2,000 previously ‘lapsed’ customers, and we have received positive feedback on our brand refresh. 

“We expect a full-year profit for 2024 in line with market expectations and continue to look at opportunities to continue our growth trajectory moving forward.”