Conviviality doubles profits following “transformational year”
Conviviality has more than doubled its full year profits to £22.5m. The owner of Bargain Booze and Wine Rack reported its pre-tax profits grew 147% on the previous year, and it almost doubled sales to £1.56bn.
The company said the integration of both Matthew Clark and Bibendum PLB is progressing ahead of plan and it described the period (53 weeks to 1 May 2016) as a “transformational year”.
The retail division, headed by former Argos director David Robinson, generated a 6.1% increase in sales to £378m. And in the first nine weeks of the current year, like-for-likes at the retail arm were also up 0.5%, with Wine Rack up 4%. This retail division attracted 39 new franchisees, while 23 increased their store portfolios throughout the past year. The total number of franchisees is 352 running 700 stores.
Diana Hunter, chief executive, said: “The balance we created across the enlarged group, and resilience this creates, gives us confidence in the future success of the business.
“Importantly the culture that we have created at Conviviality, with its entrepreneurial and innovative focus, remains true across the group and we firmly believe there is exciting potential for significant organic growth for our businesses, with further potential opportunities to build on the current platform.”