Virgin Wines reported a full-year trading performance “in line with expectations” driven by a disciplined approach to customer acquisition, positive trends on conversion and cancellation rates, and a resilient WineBank loyalty scheme.

In a trading update for the year ending June 30, 2023, Virgin Wines reported total revenues of £59m and adjusted profit before tax of “no less than £0.5m”.

The UK’s largest online wine retailer said this was “in line with expectations” as it continued “its disciplined strategic approach to customer acquisition during the year”.

Virgin Wines acquired more than 90,000 new customers during the period at an average cost per recruit of £12, a 9.2% increase year on year.

The retailer also benefited from a positive trend in conversion and cancellation rates throughout the fourth quarter and a seasonal high of £8m customer deposits into its WineBank scheme.

Chief executive Jay Wright said: “Despite the inflationary environment, we have delivered results in line with expectations. We have successfully maintained our disciplined approach to customer acquisition, conversion and cancellation rates are trending positively, and our flagship WineBank scheme continues to be resilient in challenging market conditions.

“Looking ahead, we remain confident in the underlying business model and opportunities for future growth into 2024 and beyond. We are well-positioned due to the uniquely sourced, high-quality nature of our wines, coupled with our market-leading expertise and strong foundations, and look forward to sharing more details on our strategic initiatives at the full-year results.”