Integrating acquisitions can be a tough task, but managers at beverage distributor and wholesaler Conviviality (CVR) are doing well, judging by these numbers. Last May, the group bought rival wine group Bibendum, after wholesaler Matthew Clark was acquired in October 2015. The successful integration of both companies led to a doubling in profit for the year to April 2017, as well as £6m-worth of cost synergies.
Now, the focus is shifting to organic growth. Last year, like-for-like revenue grew 5.8 per cent, well ahead of the wider market, with a similar growth rate expected by City analysts this year. On that note, trading during the first nine weeks of the new financial year went well. Sales at the major wholesale business were tracking 9 per cent ahead of last year, while festivals and events turnover was up 7.6 per cent. Finally, the retail business has pushed like-for-like revenue up 0.5 per cent, with Wine Rack performing well.
Brokerage Investec expects pre-tax profits of £53.4m for the year ending April 2018, giving EPS of 24.1p, compared to £45.8m and 21p in FY2017.
| CONVIVIALITY (CVR) | ||||
| ORD PRICE: | 337p | MARKET VALUE: | £581m | |
| TOUCH: | 335-337p | 12-MONTH HIGH: | 343p | LOW: 180p |
| DIVIDEND YIELD: | 3.7% | PE RATIO: | 31 | |
| NET ASSET VALUE: | 125p* | NET DEBT: | 44% | |
| Year to 30 April | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013** | 0.37 | 6.6 | na | na |
| 2014 | 0.36 | 4.8 | 6.1 | 8.0 |
| 2015 | 0.36 | 9.0 | 10.7 | 8.3 |
| 2016 (restated) | 0.84 | 9.1 | 4.6 | 9.5 |
| 2017 | 1.56 | 22.5 | 10.8 | 12.6 |
| % change | +86 | +147 | +135 | +33 |
| Ex-div: | 07 Sep | |||
| Payment: | 05 Oct | |||
| *Includes intangible assets of £285m, or 165p a share **Pre-IPO figures | ||||
