Diana Hunter, Chief Executive Officer 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. I am pleased with the progress we have made to bring our two businesses together. I would like to thank all of our people, our Franchisees, our on trade customers and our suppliers who have contributed to our success.”
Conviviality Plc (AIM: CVR) the UK’s leading independent alcohol wholesaler serving consumers through the on-trade and through its Franchise retail estate, has told DirectorsTalk its half year results for the 27 weeks to 1 November 2015 (H1 FY15 26 weeks to 26 October 2014), together with an update on current trading.
Group Financial Highlights
· Revenue up 38% to £252.0m (H1 FY15: £182.9m)
· EBITDA up 43% to £6.5m (H1 FY15: £4.5m)
· Group profit before tax and exceptional items up 2.8% to £3.3m (H1 FY15: £3.2m)
· Adjusted profit before tax up 19% to £3.8m (H1 FY15: £3.2m)
· Gross Margin up 0.5% points to 10.0% (H1 FY15: 9.5%)
· Adjusted diluted earnings per share up 3% to 3.8 pence (H1 FY15: 3.7 pence)
· Net debt of £98.5m (H1 FY15: net cash £1.2m) reflecting the acquisition of Matthew Clark
· Interim dividend up 5.0%, ahead of earnings, to 2.1p (FY15 interim dividend 2.0p)
Operational Highlights
· Completed transformational acquisition of Matthew Clark on 7 October 2015
· New Board and organisational structure in place
· Integration of Matthew Clark ahead of plan
Conviviality Retail Highlights
· Sales up 0.8% over the comparable 26 week period
· An improvement in like for like retail sales down 1.3%
· EBITDA in line with last year at £4.5m (H1 FY15: £4.5m)
· On track to meet full year net store opening growth target of 50
· Number of stores owned by multisite Franchisees up 7.4% to 276 (H1 FY15: 257)
· Average Franchisee profitability maintained
Matthew Clark Highlights
· Revenue from 7 October to 1 November up 2.7% to £60.6m (corresponding prior period £59.0m)
· EBITDA of £2.1 million up 10% on the corresponding prior period
· Acquired Peppermint on 31 December 2015 providing access to the fast growing events market
Christmas Trading
· Strong Christmas trading in the two peak weeks to 3 January 2016 with Group sales growth 13% above last year
· Like for like retail sales during the two peak weeks up by 1.1% (Wine Rack up 11.1%)
· Champagne and sparkling wine saw sales increase 31% with four bottles of Prosecco sold every minute in the peak trading weeks; premium bottle ales up 300% and cases of craft ales up 218%
· Matthew Clark sales to outlets increased 20% in the two weeks to 3 January 2016.
Outlook
· Trading in line with board expectations for the current financial year
· Integration of Matthew Clark significantly ahead of plan, benefitting FY17 onwards
There will be a presentation for analysts at the offices of FTI Consulting (200 Aldersgate, EC1A 4HD) at 9.30am today, 1 February 2016.
