TIDMCVR
RNS Number : 1733G
Conviviality PLC
25 May 2017
25 May 2017
Conviviality Plc
("Conviviality", the "Company", or the "Group")
Trading Update for the Year Ended 30 April 2017
A unique business model delivering strong growth
Conviviality Plc, the UK's leading independent wholesaler and
distributor of alcohol and impulse serving customers through its
franchised retail outlets and through hospitality and food service,
provides an update on trading for the 52 weeks to 30 April 2017
(FY16: 53 weeks to 1 May 2016).
The Company has traded well during the 52 week period, in line
with the Board's expectations, with total Group sales nearly
doubling to GBP1,560m (FY16 GBP841m*). Net debt at 30 April 2017
was GBP99 million, comfortably below Conviviality's Net Debt target
of 2.0x net debt / EBITDA.
During the past financial year the transformation of
Conviviality from its foundations as a franchised off licence
business into the UK's leading drinks wholesaler and distributor
has been further underpinned with the acquisition of Bibendum PLB
Group on the 20 May 2016. The integration of both Matthew Clark and
Bibendum PLB Group is progressing well and the plan to deliver the
stated synergies remains on track.
Conviviality has strengthened its management team and
reorganised its activities into three business units; Conviviality
Direct, Conviviality Retail and Conviviality Trading, enabling each
to focus on serving its customers and suppliers. Underlying sales
for each business unit have been strong throughout the year with
good organic growth compared to the corresponding prior period:
-- Conviviality Direct sales up 6.4%
-- Conviviality Retail sales up 6.1%
-- Conviviality Trading sales up 1.0%
Conviviality Direct
-- Sales of GBP1,040m in the 52 weeks to 30 April 2017; up 6.4%
on the corresponding prior period
-- Growth has been driven by both a 1.6% increase in outlets and
an increase in sales per outlet of 4.8%; a strong indication of
customers switching to a "one stop shop" model as they benefit from
the combined range and expertise of Matthew Clark and Bibendum
Conviviality Retail
-- Sales of GBP374m in the 52 weeks to 30 April 2017 (FY 2016:
GBP359m*); up 6.1% on the corresponding prior 52 week period
-- Like for Like sales in the second half of the year (26 weeks
to 30 April 2017) improved to +0.5% (H2 2016: (2.0)%)
-- Like for Like sales (excluding tobacco) in the second half of
the year (26 weeks to 30 April 2017) improved to +1.5% (H2 2016:
excluding tobacco (2.3)%)
Conviviality Trading
-- Sales of GBP146m in the 52 weeks to 30 April 2017; up 1.0% on
the corresponding prior period
-- Growth reflects the agency business benefitting from the
wider reach the Group has to offer, coupled with new customers
recognising the differentiation they can access from Conviviality's
events and experiential marketing business.
Diana Hunter, Chief Executive Officer of Conviviality said:
"We have come to the end of an unprecedented year of change and
I am pleased to report a strong trading performance for the Group
and for each of its business units. It is encouraging to see our
customers and suppliers benefiting from the skills and the
expertise of the enlarged Group, its scale and reach and its
positioning as the UK's leading drinks wholesaler and
distributor.
"We have made great progress on the integration of Matthew Clark
and the acquisition and integration of Bibendum PLB Group. Our
focus will continue to be on improving the business and ensuring
that benefits are realised from our greater scale, as we drive
efficiencies for the Group and greater service for our
customers.
"I would like to thank our passionate and talented team, as well
as our suppliers, our customers and our Franchisees, for their
loyal support through what continues to be an exciting journey for
Conviviality."
*FY16 revenue has been restated to reclassify retrospective
discounts given to customers and franchise fees earned from cost of
goods sold to revenue and from operating costs to revenue
respectively.
- Ends -
Enquiries:
Conviviality Plc Tel: 012 7061 4700
Diana Hunter, Chief Executive
Officer
Andrew Humphreys, Chief Financial
Officer
Investec Bank plc (NOMAD & Tel: 020 7597 5970
Joint Broker)
Garry Levin / David Flin /
Daniel Adams
Zeus Capital (Joint Broker) Tel: 020 7533 7727
John Goold / Nick Cowles
FTI Consulting Tel: 020 3727 1000
Jonathon Brill / Georgina Goodhew
/ Fiona Walker
Notes to Editors
Conviviality's core aim is to be the drinks and impulse sector's
leading specialist wholesaler and distributor to the on and off
trade by being the most knowledgeable and inspiring partner for our
customers. Conviviality now serves over 25,000 restaurants, hotels
and bars, over 700 franchised retail outlets, over 400 independent
specialists, a large number of festivals and events, and the major
multiple supermarkets. Conviviality offers its customers a range of
over 10,000 alcohol SKU's sourced globally from specialist
producers and brand owners that enable its customers to tailor
their ranges to meet their target consumer needs and its suppliers
to benefit from the scale and reach that the Group has to
offer.
Conviviality Direct: The UK's largest independent wholesaler to
the on-trade. Conviviality Direct serves over 25,000 outlets from
national prestige hotel chains to independent food-led pubs and
restaurants trading through two brands, Matthew Clark and
Bibendum.
Conviviality Retail: Our 370 Franchisees are local people,
passionate about their customers and the communities where they
trade. Our Franchisees make a real difference in their local
communities through a relentless focus on meeting consumer needs.
We have 700 stores across our Bargain Booze, Bargain Booze Select
Convenience and Wine Rack Brands. Conviviality Retail's role it to
build strong relationships with our franchisees, driving
sustainable relationships and profitable growth.
Conviviality Trading: Conviviality Trading brings together our
specialist brand agency businesses, PLB, Catalyst and Instil along
with outdoor and events specialists Peppermint and brand activation
agency Elastic. Together the team develop new products through
their whole life-cycle, introduce them to market in the on and
off-trade, maximising distribution and building brands and
additionally work with suppliers to activate products for consumers
at events and festivals.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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