- Annual operating profit of £5mn
- Net cash of £20mn materially higher than guidance
- Strong profit recovery expected in new financial year
Naked Wines (WINE:59p), an online wine retailer with 792,000 subscription customers in the US, UK and Australia, expects to report operating profit at the top end of guidance (£2mn-£6mn) when it releases annual results in early July. The group has also more than doubled net cash to £20mn in the 12 months to 1 April 2024, materially higher than previous guidance (£5mn-£15mn).
As anticipated, sales declined in the period, falling 13 per cent to £290mn year on year and around the bottom of the forecast range (12 to 16 per cent decline). However, the trend is improving, with the 18 per cent first-half sales decline reducing to 8 per cent in the second half. As part of the strategy to right-size the business to a lower rate of sales, general and administration (G&A) operating costs have been cut 11 per cent to £37.9mn. The full benefit of the lower cost base will be seen in the new financial year when G&A operating costs are forecast to reduce further to £30mn-£33mn.