Conviviality Plc, the UK’s leading independent wholesaler and distributor of alcohol and impulse serving consumers through its Franchised retail outlets and through hospitality and food service, has announced its final results for the 53 weeks to 1 May 2016 (FY15: 52 weeks to 26 April 2015).
Group financial highlights
• Revenue up 137% to £864.5m (FY15: £364.1m)
• Gross margin up 1.3% points to 11.5% (FY15: 10.2%)
• Adjusted EBITDA up 135% to £30.2m (FY15: £12.9m)
• Adjusted profit before tax up 124% to £21.7m (FY15: £9.7m)
• Adjusted fully diluted EPS up 27% to 14.2p (FY15: 11.2p)
• Free cashflow up 100% to £11.4m (FY15: £5.7m)
• Debt reduction ahead of plan with net debt of £86.1m (FY15: net cash £1.2m) and bank leverage of 1.96 times reflecting the acquisition of Matthew Clark in October 2015.
Operational
• Completed transformational acquisition of Matthew Clark on 7 October 2015
• New management team and organisational structure in place
•Acquired Peppermint on 31 December 2015, which is performing in line with expectations
• Post year-end, completed complementary acquisition of Bibendum PLB Group
• Integration plan ahead of expectations for both Matthew Clark and Bibendum PLB Group
• Conviviality Retail, Matthew Clark and Bibendum PLB have all traded well during the acquisition processes, and are in line with expectations
Conviviality Retail
• 0.8% increase in revenue for 53 weeks to £366.9m (FY15: 52 weeks £364.1m)
• 0.7% increase in adjusted EBITDA to £14.6m (FY15: £14.5m)
• Franchisee like for like retail sales improved to (1.3%) (FY15: down 1.7%)
• 15% increase in stores to 716 as at 1 May 2016 (April 2015: 624)
• 38 new Franchisees joined the group.
• 42% increase in stores owned by multisite Franchisees to 364 (April 2015: 257)
Matthew Clark
• 4.9% increase in revenue from 7 October to 1 May to £497.0m (corresponding prior period £474.0m)
• 18% increase in adjusted EBITDA to £18.1m (corresponding prior period £15.3m) • 2.9% increase in outlets supplied and new customers
CEO Diana Hunter said, 'These strong results reflect the hard work of our employees, Franchisees and suppliers. Our Franchisees in the Off- Trade and customers in the On-Trade remain at the heart of our business as we continue to work together to blend their entrepreneurial skill with the branding, ranging and wholesale expertise of Conviviality.
'The experienced management team in place, coupled with the well invested and compelling businesses with market leading expertise and current trading in line with expectations, gives the Board confidence for the future.
“We look to the year ahead with a stronger and more resilient business able to thrive in uncertain economic times. It is our intention to continue to deliver against our integration plan during the year, ensuring the benefits are realised from our transformational acquisitions.
'The performance of the businesses is encouraging, with the team’s relentless focus on serving their customers well and supporting Franchisees in the Retail business evidenced by the consistent delivery of results.
'We continue to review the market within which we trade ensuring that we strengthen our position as the UK’s leading drinks and impulse wholesaler and distributor.”