THE OWNER of drinks wholesale businesses Matthew Clark and Bibendum has more than doubled revenue and pre-tax profits, after a “transformational” year for the business.
The acquisition of Matthew Clark helped Alternative Investment Market-listed Conviviality to a 137 per cent increase in revenue, to £864.5 million.
Adjusted pre-tax profit at the business, which also owns off-trade chains Bargain Booze and Wine Rack, was up 124 per cent to £21.7m.
The company said the integration of Matthew Clark, which was acquired in October, was complete – with a new management team and organisational structure in place.
While the addition of Matthew Clark’s numbers helped revenue, it also contributed to an increase in operating expenses to £87.6m from £28m. The acquisition was funded in part by £80m of term loans which increased net debt to £86.1m.
The acquisition of wine specialist Bibendum took place in May and is not reflected in the results, which cover the 53 weeks to May 1. However, pop-up bar company Peppermint, which was acquired in December, is performing in line with expectations.
Pro-forma combined revenue for the enlarged group is more than £1.4bn, said the company.
Chairman, David Adams, said that the acquisitions make the business more resilient to market and economic challenges.
“We have made significant progress in [creating a long term sustainable business] and have significantly strengthened our organisation, providing future growth opportunities for our people, our franchisees, our customers and our suppliers.”
Diana Hunter, chief executive officer of Conviviality, added: “The increased scale enhances our ability to reach more customers across both the On and Off-Trade markets and therefore we have become more attractive to our suppliers, allowing us to secure better trade terms. In addition there is further potential to realise organisational, distribution and revenue synergies from the acquired businesses as we share resources."
Shares closed up 10 per cent at 196p.
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