Conviviality 's (CVR) chief executive, Diana Hunter, says it's "really important", given the Brexit sell-off, that people remember the company is a wholesaler rather than a traditional retailer. Conviviality works with both on- and off-trade customers and suppliers, internationally and nationally, so it should have some defence against the current volatility, unless the nation turns teetotal. The group's share price rebounded by a tenth on these numbers.
The acquisition of wholesaler Matthew Clark in October provided a serious boost to revenues last year, as well as adjusted pre-tax profits, which more than doubled to £21.7m. Post period-end, Conviviality also added wine distributor Bibendum PLB to its portfolio of businesses for £40m. Ms Hunter sees a fragmented market ripe for further consolidation. Today Conviviality only has an 11 per cent share of the on-trade wholesale and distribution market, a share Ms Hunter thinks could be improved either organically or through further acquisitions.
Analysts at N+1 Singer expect pre-tax profits of £47.1m for the year ending April 2017, giving EPS of 21.2p, compared with £21.7m and 14.2p for FY2016.
| CONVIVIALITY (CVR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 198p | MARKET VALUE: | £ 338m | |
| TOUCH: | 195-199p | 12-MONTH HIGH: | 239p | LOW: 165p |
| DIVIDEND YIELD: | 4.8% | PE RATIO: | 43 | |
| NET ASSET VALUE: | 107p* | NET DEBT: | 47% | |
| Year to 1 May | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012** | 395 | 5.4 | na | na |
| 2013** | 372 | 6.6 | na | na |
| 2014 | 356 | 4.8 | 6.1 | 8.0 |
| 2015 | 364 | 9.0 | 10.7 | 8.3 |
| 2016 | 864 | 9.1 | 4.6 | 9.5 |
| % change | +137 | +1 | -57 | +14 |
Ex-div: 8 Sep Payment: 7 Oct *Includes intangible assets of £240m, or 140p a share **Pre-IPO figures | ||||
