At the time of writing, shares in Conviviality Retail (CVR) had been suspended. The junior Aim market said the Bargain Booze owner must halt trading of its shares until it finalises a potential acquisition of Matthew Clark, the UK's biggest drinks wholesaler, which is currently 50 per cent owned by Punch Taverns (PUB). The deal could constitute a reverse takeover, hence the suspension, and would provide a much-needed cash injection for debt-laden Punch.
Meanwhile, Conviviality has reported another good year of trading. Over the period, 21 existing franchisees opened additional stores and 35 new franchisees joined the group. Along with last year's acquisitions of Rhythm & Booze and GT News, the number of stores grew from 595 to 624, while revenue per store improved by 2 per cent to £599,000. Diluted earnings per share dipped 3.4 per cent to 11.2p, due to the issue of equity around the IPO in 2013 and the 2.5m share options awarded to franchisees through an ongoing incentive plan.
Analysts at Panmure Gordon expect pre-tax profit of £11m for the year to April 2016, giving EPS of 13.2p, compared with pre-tax profit of £9.7m and EPS of 11.2p in 2015.
| CONVIVIALITY RETAIL (CVR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 155p* | MARKET VALUE: | £104m | |
| TOUCH: | na* | 12-MONTH HIGH: | 176p | LOW: 124p |
| DIVIDEND YIELD: | 5.4% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 79p** | NET CASH: | £1.2m | |
| Year to 26 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011† | 381 | 6.10 | na | na |
| 2012† | 395 | 5.42 | na | na |
| 2013† | 372 | 6.58 | na | na |
| 2014 | 356 | 4.83 | 6.1 | 8.0 |
| 2015 | 364 | 8.99 | 10.7 | 8.3 |
| % change | +2 | +86 | +75 | +4 |
Ex-div: 10 Sep Payment: 9 Oct *Conviviality shares were suspended from trading on 9 July 2015 **Includes intangible assets of £44.7m, or 67p a share †Pre-IPO figures | ||||
