Restructuring bearing fruit for Armit

UK fine wine merchant Armit Wines has said that its restructuring efforts have started to produce results with sales rising in the second half of the year ending 30 June 2019 and continuing into this year.

Armit has been on a restructuring drive to improve its finances over the past year, reshaping its portfolio and realigning its sales teams.

This has included the appointment of a new managing director, Brett Fleming, and a new London sales manager, Caroline Brangé, to boost Armit’s relationship with key on-trade clients.

The merchant said that campaigns introduced in the second half of FY 2019, including the last Bordeaux en primeur campaign, helps drive sales which were up 6% on the same period in 2018.

Turnover for the 12 months was £22.6 million, compared to £27.8m for the 15 months ending 30 June 2019. Profit before tax was, however, “impacted by exceptional costs associated with the restructuring of the business”.

The changes have kept sale buoyant into the first half of FY 2020, though the merchant added. Sales so far are “significantly” ahead of last year despite the current trading environment.

Fleming said: “Our results for the year ended June 2019 highlight a key repositioning for Armit Wines following its acquisition by Invivo SAS in 2017. With the full support of our new shareholder, we are now in a much stronger position to successfully turn the business around. The start of the new financial year clearly demonstrates the strength and agility of our business model.

“Furthermore, continued investments are planned across the business, particularly in new systems that will allow us to drive operational efficiencies and also improve customer service. We are pleased that the actions implemented in FY19, have significantly improved growth into FY20 and have taken us a step closer to driving sustainable profitability for Armit Wines. I am very excited about the future.

“Going forward, we will continue to work closely with our shareholder to leverage sales growth and improved sourcing, which we are very confident will positively impact on both gross and net profit. At Armit, we recognise the strength of the producers with whom we are partnering. We are not just selling fine wine; we are also telling their story; we want to make a real difference for our partners.

“I would like to personally thank all of my colleagues for their continued hard work and our business partners, suppliers and customers for their continued support.”