Conviviality says cheers as profits up 285%
Crewe-based Conviviality, the listed wholesaler and distributor of alcohol, has seen half year pre-tax profits increase 285% to £7.4m on a turnover growth of 211% to £782.5m.
The company, which owns Bargain Booze and Wine Rack, said its strong performance in the half year to October 30 was helped by the successful integration of strategic acquisitions ahead of plan.
in late 2015 it acquired Matthew Clark and a majority stake in bar and events company Peppermint, followed by Bibendum PLB Group in May 2016.
Following the acquisitions, the company has been divided into three business units. These are Conviviality Direct, the independent wholesaler to the on-trade serving 23,000 outlets ; Conviviality Retail, its franchised off licence and convenience chain trading primarily under the Bargain Booze and Wine Rack fascia; and Conviviality Trading, a full service brand and wine agency.
Diana Hunter, chief executive of Conviviality, said: “These strong results demonstrate our competitive advantage, the broad customer base we have developed and the robust nature of Conviviality as the UK’s leading drinks wholesaler, distributor and solution provider to our customers.”
She added: “The recent acquisitions have resulted in Conviviality being well positioned in its market with a resilient business model that provides unique positioning for its suppliers and customers. We are also pleased to report that the group continues to trade in line with expectations for the full year.”
An interim dividend of 4.2p will be paid – up 100% on last year – which the company said is expected to represent around a third of the full year dividend.
