Conviviality share price rises 4.5 per cent as company raises glass to “transformational” year
Alcohol group Conviviality's share price rose by more than 4.5 per cent during trading today after it toasted a "transformational" year in a trading update.
The figures
The bargain booze retailer posted a full-increase increase of 137 per cent in group sales to approximately £864m, up from £364m in 2015.
The company has said its earnings before interest, tax, depreciation and amortisation (Ebitda) is expected to be "marginally ahead" of market expectations and should post net debt at the end of the year of around £87m.
During the year, Conviviality opened 126 new stores, while the number of store closures fell to 34, down from 63 the year before.
This resulted in net store growth of 92 and an increase in the number of stores to 716 by 1 May.
Read more: Conviviality Retail sales soar after Matthew Clark takeover
During the year Conviviality Retail attracted 38 new franchisees and the number of stores owned by multi-site franchisees increased by 42 per cent to 364.
The company's shares traded at a peak of around 4.5 per cent higher during the day's trading after the update was released.
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Why it's interesting
Conviviality's Matthew Clark, which the company acquired for £200m in October last year, has traded strongly, with sales up 4.9 per cent on the corresponding period.
The company is forging ahead with its acquisition strategy, recently soaking up wine wholesaler Bibendum at the beginning of the month in a deal worth £60m. Conviviality has said there is already "a detailed integration plan in place" that follows the same principles deployed in the Matthew Clark takeover.
What Conviviality said
Diana Hunter, chief executive of Conviviality, said:
We have successfully completed a transformational year for the company, its employees, customers and franchisees. We look forward to a strong set of results reflecting our transition to being the UK’s leading independent alcohol wholesaler, serving consumers through the on-trade and through its franchise retail estate.
The acquisitions of Matthew Clark, Peppermint and Bibendum PLB Group enable Conviviality to fulfil its aim to satisfy all consumer drinking occasions, enabling it to have unrivalled insight and expertise as the drinks sector’s leading wholesaler and distributor.