Bargain Booze owner Conviviality posts strong results
Bargain Booze and Wine Rack owner Conviviality Retail has reported a pre-tax profits increase of 31.5% for the financial year ending April 27.
Pre-tax profits excluding exceptional items were £9.3 million, compared with £7.1 million the previous year.
Like-for-like retail sales climbed narrowly, up 0.05%. The group has a cash balance of £10 million and is debt-free.
Chief executive Diana Hunter said: “These are strong results achieved during a period of significant change for our business and we are making good progress to deliver our strategy.
“We are seeing the benefits of a stronger relationship with our franchise partners, and many of our franchisees have seen their profits improve as a result.”
Conviviality said franchisee profit per store rose 10% and that franchisees were awarded 1.2 million shares, each worth £5,700, for hitting performance targets.
Average retail sales per store were up by £16,000 and gross profit margins increased 0.7%.
Hunter added: “We have a significant opportunity ahead and we are confident that the foundations we have put in place this year will deliver further improvements for our company, our franchise partners and investors.”
