Conviviality backtracks on forecast to the tune of £5.2m

Conviviality, the Crewe-based owner of Bargain Booze and Wine Rack, says its EBITDA for the year ending on April 29 will  be £5.2m less than predicted because of a “material error in financial forecasts”.

The company also said that margins in Conviviality Direct have softened across January and February, and was expecting a “continuation of margin weakness” for the remainder of the financial year.

“A number of enhanced controls and disciplines have been introduced to address this and management believes that appropriate corrective actions are in place,” the company said in a statement.

“The company has not seen any material weakness in overall demand and the previously announced cost saving actions remain fully on track.”

In January, the company toasted half-year revenue of £836.3m with long-term deals with its largest customers – Stonegate Pub Company and JD Wetherspoon.

This was despite a 1.9% dip in pre-tax profits to £15.1m in the period to October 30, 2017.