Acquisitions paying off for Bargain Booze owner
CREWE-based Conviviality, owner of Bargain Booze and Wine Rack, says its £200m acquisition of Matthew Clark is already paying off and boosting the bottom line.
The AIM-listed company says it has traded well over the past year, with group sales more than doubling to £864m for the full year to May 1 2016 (2015: £364m).
EBITDA is expected to be marginally ahead of market expectations, the group said, with end of year with net debt at around £87m.
During the year, Conviviality Retail saw net growth of 92 stores, increasing in the total number of stores to 716. It attracted 38 new franchisees and the number of stores owned by multi-site franchisees increased by 42% to 364.
Wholesale sales were in line with last year, while like-for-like sales at Wine Rack were up 3.2%.
In October, Conviviality made its ‘ transformational’ acquisition of drinks wholesaler Matthew Clark for £200m. In the year to 28 February 2015, Matthew Clark generated revenue of £811.2m and adjusted EBITDA of £25.3m.
The group said Matthew Clark has traded strongly since acquisition with sales up 4.9% on the corresponding prior period. The number of outlets supplied increased 2.9% since acquisition with the number of customers also 2.9% higher.
Earlier this month, the company bought Bibendum PLB for £60m, one of the largest wine, spirit and beer distributors and wholesalers to the UK on-trade and off-trade markets.
It generated revenues of £270.5m for the year to the end of March, with adjusted EBITDA of £6.66m and will increase the group’s turnover by 23%, with combined annual sales of £1.4bn.
Conviviality said the acquisition would give it increased market share with the on-trade through Bibendum Wine; the off-trade through Walker & Wodehouse; agencies through PLB and Instil Drinks Co. and events through the Wondering Wine Company.
Bibendum PLB particularly strengthens the group in premium trade sectors and deepens its presence in London and the South East.
Diana Hunter, chief executive of Conviviality Plc, 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.
“I would like to thank the passionate and talented team who work at Conviviality, our suppliers, our customers and our franchisees for their support. I continue to be encouraged by the company’s achievements and the opportunities we have for the business.”
