Conviviality hails 'transformational' year

Claire Dodd

Claire Dodd

18 July 2016

UK alcohol wholesaler and Bargain Booze-owner Conviviality Plc has reported revenue growth of 137% to £864.5m in its first final full-year results following its £200m purchase of Matthew Clark in October of last year.

The results to 1 May 2016 don’t include the company’s subsequent £60m purchase of leading wine and spirits company Bibendum PLB, which was announced on 3 May.

Adjusted profit before tax was up 124% to £21.7m, while diluted earnings per share rose 27% to 14.2p. The full-year dividend was up 14% to 9.5p. Conviviality Retail reported a 0.8% increase in revenue for the period to £366.9m.

Conviviality also purchased London-based bar and events company Peppermint Bars in December, in a flurry of acquisitions that have transformed the business.

The company said its integration plan was performing ahead of expectations for both Matthew Clark and Bibendum, including a 4.9% increase in revenue to £497m for Matthew Clark from 7 October to 1 May.

Diana Hunter, CEO of Conviviality, said: 'These strong results reflect the hard work of our employees, franchisees and suppliers. Our franchisees in the off-trade and customers in the on-trade remain at the heart of our business as we continue to work together to blend their entrepreneurial skill with the branding, ranging and wholesale expertise of Conviviality.

'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.

'The performance of the businesses is encouraging, with the team’s relentless focus on serving their customers well and supporting franchisees in the retail business evidenced by the consistent delivery of results.

'We continue to review the market within which we trade ensuring that we strengthen our position as the UK’s leading drinks and impulse wholesaler and distributor.'

Chairman David Adams added: 'Over the past three years, we have focused on creating a long term sustainable business resilient to market and economic challenges. We have rapidly reconfigured the business to successfully integrate our acquisitions and added key executives to lead the delivery of our business units and planned synergies.'

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