News

Turnover rises at Armit Wines

19 June 2023 By Arabella Mileham

Armit Wines saw turnover of £18.6m in the 9 months to 30 June, a rise of 7% versus the same period the previous year, according to accounts filed at Companies House.

The rise, it said, was due to a combination of price increase, new additions to the portfolio and improved allocations on key en primeur campaigns.

Gross profits also increased from 25.4% to 26.3% it said, following the recover of the on-trade channel from the horrors of the Covid lockdowns, along with additional investment in that channel.

The results also noted that the company had brought is accounting period in line with the wider group, making direct comparisons to the last full accounting year, which saw overall turnover of £22million in the 12 months to 30 September 2021, impossible.

Profits hit £1.32million it said, with assets exceeding liabilities by £1.39million.

During the period, Armit said it had undergone a process to reconcile its inventory and ensure that its stock control processes are “now robust”. As part of this project, it said it will sell a “significant proportion” of its inventory – amounting to 80% of the value – at a higher price than originally estimated, with the team confident that the remaining inventory will be sold in the next 6 months at above the estimate cost.

This, it said helps to “reduce the net deficit on the brought forward profit and loss accounts”, increase stock by over £1m and reduced deferred tax.”

The project also identified a shortfall in some of its listed inventory but Armit said it had replaced around 80% of the value of these wines, and will “continued to search for replacements for the remainder”. This has increased the net deficit to the profit and loss account, it added. The realignment of inventory, combined with the cost control and stock purchasing was also likely to result in continue improvement in cashflow, it said.