Conviviality revenues rise 9.2% to £836m in first half

Conviviality Plc, the parent company of Bargain Booze, Select Convenience, Wine Rack, has reported an overall revenue increase of 9.2%, up £70m to £836m, for the first half of the year, driven in part by the success of its renewed franchisee programme.

Diana Hunter, Conviviality CEO (Photo: Conviviality)

Last month the retailer announced it was to award franchisees shares for the second year running as part of its incentive plan, with franchisees receiving 1,000 shares if they met performance targets and a further 1,000 or 2,500 shares per store depending on their gold or silver status in Conviviality’s store standards assessment.

Conviviality introduced the franchisee incentive plan as part of a larger rewards package to incentivise franchisees to improve store standards and financial performance after it floated on the Alternative Investment Market in July 2013.

Releasing its half year results this morning for the 26 weeks ending 29 October, unaudited revenue was 9.2% ahead of last year at £836m and 7.9% above the corresponding prior period, while net debt has reduced to £134m compared to £139m last year.

Importantly, these results do not include the financial results of either Bibendum PLB or Matthew Clark, which Conviviality acquired in 2016 and 2015 respectively, with the company also noting that prior year sales have been “restated to reflect the adjustments made in the financial year ended April 2017 relating to the classification of retrospective sales rebates, listing fees and franchise fees and the removal of inter segment revenues.”

“Bibendum PLB Group sales for the period 1 May 2016 to 19 May 2016 were incorrectly included in sales for the 26 weeks ended 30 October 2016 and have been removed. This correction has no material impact on previously reporting profit.”

 In terms of Conviviality’s business areas, sales within Conviviality Direct were up 6.9% over the corresponding prior period to £5.40m (H1 FY2017 £500m).

Conviviality Retail sales were up 10% over the corresponding prior period to £203m (H1 FY2017 £185m) and Conviviality Trading sales were up 9.6% over the corresponding prior period to £93m (H1 FY2017 £82m)

“We are pleased to have delivered strong revenue growth during the period,” said Diana Hunter, chief executive officer of Conviviality. “This performance is a direct result of the support and engagement of our valued customers and franchisees across our entire business, our suppliers and global producers and the talented teams who work closely with them.

“During this period the Company has undergone significant change as we continue to implement systems that will ultimately serve to future proof our business and enable us to continue to deliver the outstanding service that our customers and franchisees expect from us.”

The group said its performance is in line with the board’s expectations for the 52 week period ending 29 April 2018.