REG - Naked Wines PLC - Final Results
Tue 07:02
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RNS Number : 9266T Naked Wines PLC 05 August 2025
5 August 2025
Naked Wines plc
('Naked Wines' or 'Group')
Full year results for the 52 weeks ended 31 March 2025
FY25 performance in line with guidance; strong cash generation including
significant progress reducing inventory supports commencement of shareholder
distributions
Naked Wines is pleased to announce its audited full year results for the 52
weeks ended 31 March 2025 ('FY25'). Results in line with guidance, reflecting
focus on driving profitability and cash generation. Commencement of
shareholder distributions.
FY25 Financial Highlights:
● Revenue of £250.2m in line with management expectations across
all markets, with -14% year-on-year (-18% FY24 on FY23)
● Gross Profit Margin(1) of 18.4% (FY24: 18.9%) broadly flat, with
improvements in repeat contribution margin offset by the impact of increased
bulk sales/stock liquidation
● Adjusted EBITDA excluding inventory liquidation and associated
costs(2) of £6.7m (FY24: £8.7m) in line with guidance
● Statutory loss before tax of £4.9m improved on prior year (FY24:
loss of £16.3m), reflecting the £9.9m impairment costs in prior year
● Significant progress made in reducing excess inventory; total
inventory (including staged payments to winemakers) down £37m at £108m
(FY24: £145m); supported by inventory liquidation costs of £6.5m
● Net cash excluding lease liabilities of £30.1m up £10.5m on
prior year (FY24: £19.6m)
● Positive free cash flow (FCF(3)) of £18.5m versus £6.7m for
prior year, primarily driven by inventory reduction
● Return On Equity and Cash(4) of 9% versus 9% prior year
FY25 Strategic and Operational Highlights:
● Rebuilt leadership team with Rodrigo Maza joining as CEO and
Dominic Neary as CFO; reinforced the Leadership Team with diverse,
high-calibre talent committed to delivering Naked's mission through customer
centricity, data-led analysis, and a high-performance culture
● Comprehensive testing programme conducted in FY25, with valuable
learnings including pricing simplification, improving delivery flexibility and
strengthening community engagement
● Member Retention Rate(5) stable on prior year at 75%, and
profitable core members(6) generating in excess of £40m repeat contribution
in FY25, broadly in line with FY24
● Customer Acquisition Cost(7) at £74 (FY24: £73), with actions
commenced in late FY25 as part of the redefined Marketing Strategy to bring
this down
● Customer Net Promoter Score(8) of 76 considered 'excellent', up on
prior year (FY24: 73)
● Group-wide performance review completed, with resulting New
Strategic Plan announced on 27 March 2025 designed to deliver significant
cash, distributions, and sustainable profitable growth over the Medium Term
(as detailed in the CEO and CFO Statements)
1. Gross Profit Margin %: Gross profit as a % of revenue
2. Adjusted EBITDA excluding inventory liquidation and
associated costs: EBITDA excluding inventory liquidation and associated costs
and adjusted items
3. FCF = Free Cash Flow: Operating cash flow less capital
expenditure
4. ROEC = Return On Equity and Cash: EBITDA excluding inventory
liquidation and associated costs, and adjusted items, as a percentage of
equity plus debt including cash and cash equivalents. We have included cash in
the denominator because we have committed to distributing as much cash as
possible in the coming years. Doing so, will be reflected in this metric.
5. Member Retention Rate: The % of members at the start of the
financial year that are retained at the end of the financial year
6. Core members: Customers who have been with us for more than
24 months
7. Customer Acquisition Cost: The cost to acquire a new member
being Investment in new customers divided by new members acquired
8. Customer Net Promoter Score: Measures customer loyalty and
satisfaction based on the likelihood of customers to recommend Naked to
others. (NPS = % Promoters - % Detractors)
Post Period End and Current Trading:
● Trading to date in FY26 currently in line with FY26 Guidance
(given below), which indicates progressive growth in adj. EBITDA (excluding
inventory liquidation and assoc. costs) and further cash generation
● Good initial progress made towards delivering the key priorities
in the New Strategic Plan:
o The FY26 cost savings (£15m of the total £23m annualised Medium Term
target) already actioned in Q1 FY26 and taking effect from the middle of the
quarter
o Liquidation of excess inventory continuing as planned towards the Medium
Term target of generating £40m of cash
o In line with the new Capital Allocation Priorities announced in March
2025, commencement of shareholder distributions
● Shareholder distributions policy:
o Targeting ongoing distributions:
▪ Of up to the lesser of 40%, of 12 month cash creation, or 12
month adjusted EBITDA excluding inventory liquidation and associated costs
▪ As part of this, proposed share buyback of c. £2m to commence
shortly after the results are announced
o More significant ad hoc distributions envisaged as the Group delivers on
the cash generation and sustained profitability set out in the Medium Term
plan
● Appointment of Jack Pailing as Non-Executive Chair on 22 July 2025
Rodrigo Maza, CEO, said:
"Over the course of FY25, we have taken big steps to stabilise the business,
to rebuild the team, and ground our strategy in real data and insights. We've
announced a clear disciplined plan to reach in excess of £70m cash. We are
already executing with more focus, more discipline, and more conviction than
ever. And while there's still work to do, I genuinely believe we have built
the platform to take Naked to the next stage of growth; FY26 will be an
exciting year."
FY26 Guidance(1):
The Group is today providing guidance for FY26, which represents direction of
travel towards the previously provided Medium Term Guidance enabled through
delivery of the New Strategic Plan.
There is anticipated to be an impact on consolidated numbers resulting from
the recent USD FX movement (from 1.25 to 1.35). This guidance assumes that the
FX rate stays at this level through to 31 March 2026. The impact of this is
that GBP revenues drop circa £7m, and GBP adjusted EBITDA excluding inventory
liquidation costs drops by circa £1.2m. This is factored into the FY26
Guidance given below.
KPI FY26
Revenue £200m to £216m
Adjusted EBITDA(2) (excl. inventory liquidation and associated costs) £5.5m to £7.5m
Net cash (excl. lease liabilities)(3 & 4) £35m to £39m(6)
Inventory liquidations and associated costs(5) £12m of inventory liquidation cost over the Medium Term (further FY26 update
in December 2025)
1. This guidance has been provided based on constant FX rates of 1 GBP
= 1.35 USD and 2.00 AUD
2. As highlighted in March 2025, implementing the £15m of FY26
savings results in a likely £2-£3m exceptional cost in FY26
3. Net cash (excl. lease liabilities); the amount of cash we are
holding less borrowings at year end excluding lease liabilities.
4. Net cash guidance includes an assumed £2m distribution in calendar
year 2025
5. Medium Term Inventory liquidation and associated costs to speed up
cash delivery, including bulk and cased goods, excess overhead absorption and
associated storage costs
Presentation:
Naked Wines plc is hosting a presentation for registered professionals at
9:30am UK-time today (5 August 2025). The briefing will be webcast using the
following link:
https://sparklive.lseg.com/NakedWines/events/4806ed24-19eb-4631-99a6-6e8cce127c29/naked-wines-full-year-2025-results
(https://sparklive.lseg.com/NakedWines/events/4806ed24-19eb-4631-99a6-6e8cce127c29/naked-wines-full-year-2025-results)
A recording will also be made available on the Results section of the investor
website www.nakedwinesplc.co.uk shortly after.
Upcoming live presentation with Investor Meet Company
Naked Wines is also hosting a live presentation via the Investor Meet Company
platform on 8 August 2025 at 09:00am UK-time. The Investor Meet Company
presentation is open to all existing and potential shareholders.
Investors can sign up to Investor Meet Company for free and add to meet Naked
Wines plc via the link below. Investors who already follow Naked Wines plc on
the Investor Meet Company platform will have automatically been invited.
https://www.investormeetcompany.com/naked-wines-plc/register-investor
(https://www.investormeetcompany.com/naked-wines-plc/register-investor)
For further information, please contact:
Naked Wines plc IR@nakedwines.com (mailto:IR@nakedwines.com)
Rodrigo Maza, Chief Executive Officer
Dominic Neary, Chief Financial Officer
Catherine Miles / Libby Bundock
Investec (Nomad & Joint Broker) Tel: 0207 597 5970
David Flin
Panmure Liberum (Joint Broker) Tel: 0203 100 2222
Ed Thomas / John More / Dru Danford
Vigo Consulting (Financial PR) Tel: 0207 390 0230
Guy Scarborough / Damian Reece / Tim McCall
About Naked Wines
Naked Wines (https://www.nakedwines.co.uk/) is not just an online wine
retailer; we're trailblazers on a mission to enable enthusiastic wine drinkers
to enjoy great wine without the guesswork.
Founded in 2008, on the pillars of quality, choice and fair pricing, we set
out to create the most inclusive wine club in the world - dedicated to
transforming the wine-buying experience and empowering people to make their
own wine choices, and championing world-class independent winemakers. We've
proudly been delivering outstanding wines to our members (most of whom we call
our 'Angels') for over 17 years.
Our business model is simple yet innovative: Naked Wines funds the production
costs for winemakers upfront, allowing them to focus on creating exceptional
wines without the financial burdens of traditional wine production, while
passing the resulting savings back to our customers.
The virtuous circle is a win-win for both wine lovers and winemakers, and
enables us to deliver superior benefits to our customers:
- Better quality wine
- More choice
- Personalised wine recommendations
- Elimination of guesswork and uncertainty
- Fair payments for all involved
Our Angel customers in the UK, US and Australia have direct access to over 300
world-class independent winemakers and over 2,500 quality wines from 23
countries.
For more information visit nakedwinesplc.co.uk (http://nakedwinesplc.co.uk/)
and nakedwines.co.uk (http://nakedwines.co.uk/) or find us @nakedwines
(https://www.instagram.com/nakedwines)
Appendix
Naked Wines' KPIs
The Group's KPIs given below are inclusive of those in support of the key
priorities under the New Strategic Plan as announced on 27 March 2025:
Financial KPIs FY25 FY24 change
Revenue £250.2m £290.4m -14%
Loss before tax (£4.9m) (£16.3m) +£11.4m
Net Cash (excluding lease liabilities) £30.1m £19.6m +£10.5m
Group KPIs FY25 FY24 change
NPS(1) 76 73 +3
Member Retention Rate %(2) 75% 75% unchanged
Customer Acquisition Cost(3) £74 £73 +£1
Revenue Per Member(4) £395 £404 -2%
Gross Profit Margin %(5) 18.4% 18.9% -50 bps
5 Year Payback*(6) 0.9x 1.3x -0.4x
Adjusted EBITDA excluding inventory liquidation and associated costs(7) £6.7m £8.7m -£2.0m
Free Cash Flow(8) £18.5m £6.7m +£11.8m
Return On Equity and Cash(9) 9% 9% unchanged
*A revised version of this KPI will be published at the 2026 Half Year Results
(HY26) when the Group has sufficient data points relating to the redefined
marketing strategy
1. Customer Net Promoter Score: Measures customer loyalty and
satisfaction based on the likelihood of customers to recommend Naked to
others. (NPS = % Promoters - % Detractors)
2. Member Retention Rate %: The % of members at the start of the
financial year that are retained at the end of the financial year
3. Customer Acquisition Cost: The cost to acquire a new member
being Investment in new customers divided by new members acquired
4. Revenue Per Member: Repeat Customer sales as a percentage of
the number of members
5. Gross Profit Margin %: Gross profit as a % of revenue
6. 5 Year Payback: The ratio of projected future Repeat Customer
contribution we expect to earn from the new customers recruited in the year,
divided by the Investment in New Customers. This payback KPI will be replaced
with a revised KPI which will be launched with the FY26 Interim results
7. Adjusted EBITDA excluding inventory liquidation and
associated costs: EBITDA excluding inventory liquidation and associated costs
and adjusted items
8. FCF = Free Cash Flow: Operating cash flow less capital
expenditure
9. ROEC = Return On Equity and Cash: EBITDA excluding inventory
liquidation costs and adjusted items as a percentage of equity and net cash
excluding lease liabilities. We have included cash in the denominator because
we have committed to distributing as much cash as possible in the coming
years. Doing so, will be reflected in this metric.
Letter from the Chair
As I reflect on the past year, I am pleased to report that Naked Wines is
navigating challenging market conditions with resilience and strategic focus,
positioning us for sustainable growth and long-term value creation.
The global economic environment in FY25 remained challenging, marked by
inflationary pressures, shifting consumer behaviours, and geopolitical
uncertainties. However, we believe that socioeconomic trends, including a
growing demand for authenticity, quality, and community-driven experiences,
will increasingly play to the heart of our unique business model. By
connecting premium wine drinkers directly with independent Winemakers, Naked
Wines is well positioned to capitalise on these trends, delivering
unparalleled value and fostering a loyal community of Angels. Our ability to
offer high-quality wines at fair prices, coupled with a direct-to-consumer
model that emphasises transparency and provenance, ensures we remain relevant
and competitive in an evolving market.
In FY25, we have continued to see a decline in revenue of 14%, vs 18% decline
in FY24. This includes both the normal attrition levels of the exceptionally
large cohorts from FY21/FY22, and also a challenging market. Nevertheless,
performance is in line with our guidance, and we have seen a return to a small
membership growth in Australia, a testament to the effectiveness of our
execution and teamwork. We have made significant progress with cash generation
as we have reduced our inventory levels. The £6.5m inventory liquidation and
associated costs connected with these resulted in the £2.0m adjusted EBIT
loss. Our rigorous test-and-learn approach has provided valuable insights,
enabling us to refine our strategies and focus on what drives value. Whilst
our CEO, Rodrigo Maza, will elaborate on these achievements, I want to
highlight the stabilisation of our financial foundation and the clarity of our
strategic direction as key milestones.
At the end of the financial year, we laid out a strategy focused on improving
liquidity, strengthening our profitable core, and returning to growth. The
details of this strategy, including our progress on inventory liquidation will
be covered comprehensively in the CEO and CFO sections.
We have made substantial progress in FY25 and whilst we recognise that there
is more work to be done to achieve consistent profitability and sustainable
growth, this has been supported by an improved management team with continued
support from our dedicated Board. I want to express my deepest gratitude to
Rowan Gormley, who stepped down this year after playing a pivotal role in
stabilising the business and laying the foundation for our current trajectory.
His vision and dedication have left an enduring legacy that we are committed
to furthering. Additionally, we welcomed Dominic Neary as our new CFO. Dominic
brings clarity, financial acumen, and a wealth of experience in the consumer
and technology sectors, positioning us to execute our strategy with precision.
Beyond financial performance, Naked Wines remains committed to making a
positive impact in our communities. Our charity and ESG initiatives, reflect
our dedication to supporting the communities we serve and the independent
Winemakers who are the heart of our business. From rallying around Winemakers
during crises to fostering sustainable practices, we are proud to align our
purpose with meaningful action.
On capital allocation, we remain focused on generating significant cash flow
and making prudent investment decisions. We remain committed to disciplined
capital allocation. As outlined by our CFO, future distributions will be made
in alignment with our capital allocation policy and be executed in strategic
alignment with our stakeholders.
In closing, FY25 has been a year of stabilisation, strategic clarity, and
renewed momentum, and it has been a pleasure to serve as interim Chairman for
the last several months. I am very pleased that following the conclusion of
a comprehensive and competitive recruitment process, on 22 July the Company
announced the appointment of Jack Pailing, current Senior Independent
Director, as our new permanent Chairman. Jack has known the business well for
many years as a shareholder and I look forward to continuing to serve as a
non-Executive Director on the Board with Jack.
With a robust plan, a talented team, and a community-driven model, we believe
Naked Wines is poised to unlock its full potential. We have conviction that
our discipline, transparency, and return to growth will deliver compelling
value for our shareholders, Angels, and Winemakers alike.
Thank you for your continued support.
Yours sincerely,
Deirdre Runnette
Interim Chairman
Chief Executive's review
When I stepped into the CEO role last year, I made three commitments: to lead
transparently, operate with discipline, and act responsibly. FY25 was the
first full year of delivering on those promises.
We focused on fixing the foundations, embedding a data-driven culture, and
launching a clear strategy for value creation and growth. While there's still
work ahead, we are a stronger, more focused business today, with momentum
building across our markets.
Importantly we have delivered FY25 results in line with our guidance. Revenue
of £250.2m is down on FY24 by 14%, reflecting the continued attrition of our
exceptionally large FY21/FY22 cohorts, the lack of an Easter trading period in
the financial year, and a continued challenging market. Importantly we
delivered adjusted EBITDA excluding inventory liquidation and associated costs
of £6.7m (FY24: £8.7m).
Ensuring Robust Foundations
FY25 was about stabilising our business and rebuilding confidence, and we made
real progress:
● We've generated £20m in net cash excluding lease liabilities
since the start of FY24, including acceleration of the sale of surplus
inventory, and secured a flexible new credit facility that provides us with
£27m in liquidity
● While our UK and US membership bases continue to decline, we're
seeing encouraging signs, particularly in Australia, where we've returned to
growth after two years of decline
● Cash reached £30m at the end of the year, reflecting significant
progress in reducing our excess inventory. The £4.9m loss before tax (FY24:
loss of £16.3m) includes £6.5m of inventory liquidation and associated
costs, which helped to deliver this objective
These results reflect the resilience of our team, the loyalty of our Angels
and Winemakers, and validate the tough but necessary decisions we made to
reset the business.
Proud to Be Naked
We rebuilt the leadership team and upgraded the way Naked runs.
● We put in place simple, rigorous systems that created real
alignment, helping teams focus on what matters, take ownership for outcomes,
and grow through clear, consistent feedback
● Built a high-performance culture grounded in accountability and
evidence-based decision making
● Strengthened our relationships with Winemakers, driving deeper
collaboration, better wines, and smarter investment
We've shifted into a learning culture, one that moves quickly, tests boldly,
and doubles down on what works.
Getting Naked Back to Growth
With the foundations stabilised, we launched a focused strategy to reach in
excess of £70m in net cash excluding lease liabilities over the Medium Term,
built on three priorities:
1. Release excess working capital: Unlock as much of our £30m cash
from the balance sheet as we can and an additional £40m from surplus
inventory
2. Recalibrate around our profitable core: Focus investment on
high-value Angels to deliver annual adjusted EBITDA of £9-14m
3. Return to sustainable growth: Reignite 5-10% top-line growth by
getting retention back to historical levels, investing in customer acquisition
with discipline, and leveraging our engaged community of Angels and Winemakers
Testing is now at the core of how we operate, from propositions to marketing
to operations. We've shut down what no longer works, doubled down where it
does, and built a culture where testing isn't a phase. It's how we run the
business.
Looking Ahead
We're not naïve about the road ahead. We operate in challenging markets, and
we're still rebuilding trust, with customers, investors, and ourselves. But we
now have the strategy, structure, and leadership in place to deliver.
We remain focused on organic growth but open to strategic opportunities that
drive shareholder value.
The Naked Movement Is Back
What excites me most is that we're getting our edge back, reconnecting with
the purpose and energy that made Naked special in the first place. We're
connecting passionate wine drinkers with independent Winemakers through
quality, transparency, service, and community.
To our shareholders, Angels, Winemakers, and my team… thank you. Your belief
got us through our toughest test. Now, it's time to build again.
Rodrigo Maza
Chief Executive Officer
Financial Review
Overview
My first few months at Naked Wines have been both busy and extremely
enjoyable. I'd like to thank Maza and the wider Naked team for their warm
welcome. A special thanks to our Winemakers, whose passion for wine is
genuinely infectious, and whose products line my shelves at home.
Having managed through a period of liquidity challenges over the past two
years, Naked Wines moves into FY26 with a strengthened financial foundation.
FY25 results are in line with our expectations, the business has £30m of net
cash excluding lease liabilities in the bank, a further circa £27m of unused
financing, and is cash generative with adjusted EBITDA profitability.
At our strategy day in March, we reset our financial strategy based on three
key pillars:
1) Reach in excess of £70m net cash excluding lease
liabilities from the balance sheet:
a) We have £30m of net cash excluding lease liabilities today, after
generating £20m of net cash excluding lease liabilities since the start of
FY24.
b) Inventory has fallen from £166m at the start of FY24 to £108m at
the end of FY25, and we anticipate generating circa £40m of net cash
excluding lease liabilities in the coming years as we sell through and
liquidate our excess stock.
c) In our refreshed capital allocation policy, the Board has committed
that we will be disciplined in how we manage cash and return excess capital to
shareholders in a way that maximises value per share or agree another
utilisation with investors.
2) Focus on generating adjusted EBITDA from our
profitable core members:
a) Data from the last few years shows that our underlying non-pandemic
acquired closing members have been broadly stable. The majority of the decline
in members during this time is the result of the huge scale of customer
acquisition during FY21 and FY22; this is simply the mathematics of customer
retention.
b) Whilst there are improvements to be made in acquisition, our core
members (customers who have been with us for more than two years) continue to
be profitable, generating in excess of £40m Repeat Customer contribution in
FY25.
c) To support profitability, we've identified over £23m in cost
savings, of which £15m has been secured in Q1 for delivery in FY26.
d) As a result, we are confident in our ability to grow adjusted EBITDA
progressively to exceed an annual £9m by the end of the Medium Term.
3) Our investment approach is rigorously 'return on
investment' driven:
a) Customer acquisition is governed by clear cost-per-acquisition and
payback thresholds.
b) Budgets are unlocked quarterly against defined performance criteria.
c) We've identified up to £3m in initiative-based investment, focused
on engagement tools like customer guarantees and retention programs. These are
expected to support a return to historic retention levels. Management believes
that this could result in a 5-10% underlying revenue growth by the end of the
Medium Term.
d) In parallel, we've initiated a two-year roadmap to simplify our
technology platform. While primarily justified by cost savings, it will also
enable higher customer to member conversion, lower acquisition costs, and
scalable growth.
These three pillars, supported by the reinvigorated performance culture at
Naked Wines are showing clear benefits already. Free cash flow is positive,
net cash excluding lease liabilities generation is strong, and adjusted EBITDA
excluding inventory liquidation and associated costs is in line with our
plans. We are confident in our ability to generate adjusted EBITDA in excess
of £10m by the end of the Medium Term, and to free up significant capital as
we do.
Drivers of Group P&L performance
In FY25, our results were in line with our expectations. These results reflect
our focus on driving underlying profitability and cash generation. Total
revenue of £250.2m was down 14% vs FY24 (down 13% on a constant currency
basis). This decline is aligned with the 14% decline in Active members and 11%
decline in members, as we focus on a higher-quality, more efficient, core
customer base. Key drivers of this were:
● (4)% is the result of very high acquisition levels in FY21 and
FY22; during the COVID-19 pandemic, customer acquisition during these two
years was 2.7x normal acquisition levels; as a result, the attrition from
these cohorts in FY25 has been 2.7x that which we would normally expect it to
be. This effect will diminish over time as these cohorts represent a
decreasing share of the total member base.
● (2)% is from the strategic reduction to investment in new
customers: we estimate that closing members in FY25 were 15,000 lower due to
the reduction of inefficient marketing spend in Q3/4 FY25. Management expects
the reduced volumes primarily to affect low-value segments, where customer
lifetime value (LTV) is significantly below average.
● (2)% impact is from lower revenue per member: this reflects a
shift in revenue mix, with a smaller proportion of total revenue generated
from the US market, where revenue per member remains highest.
● (6)% impact is from additional external factors: these include the
absence of the Easter trading period in the UK in FY25, and broader economic
pressures.
On a statutory basis, gross profit has declined by 16% to £46.1m (FY24:
£55.0m). This is broadly in line with the decline in revenue and includes the
following movements:
● Repeat customer contribution margin improved from 24.7% in FY24 to
24.9% in FY25, the key drivers being 50bps of margin improvement from COGS and
other fulfilment cost initiatives, notably in the US. This was partially
offset by 20bps of regional mix impact.
● Investment in new customers of £20.8m (FY24: £23.3m) was down
10% on FY24, including advertising costs of £17.8m (FY24: £19.0m),
reflecting the reduction of inefficient spend in Q3/4 of FY25 and the
subsequent lower volume of new members recruited.
● Gross profit also includes £8.0m of non-trading items: £6.5m of
inventory liquidation and associated costs, and £1.5m of adjusted items
relating to a £0.8m net gain from inventory disposal after inventory
provision release and a charge of £2.3m for under-absorption of current
year's winery overheads.
Income statement
As reported As reported Adjusted
at constant currency
at constant currency
FY25 FY24 YoY FY24 YoY FY25 FY24 YoY
£m £m % £m % £m £m %
Revenue 250.2 290.4 (14)% 287.6 (13)% 248.1 285.7 (13)%
Cost of sales (162.4) (178.5) (9)% (170.5) (5)% (154.1) (165.7) (7)%
Fulfilment costs (43.4) (54.5) (20)% (60.4) (28)% (43.7) (60.4) (28)%
Gross profit pre movement in US inventory provision 44.4 57.4 (23)% 56.7 (22)% 50.3 59.6 (16)%
Movement in US inventory provision 1.7 (2.4) 171% (2.3) 174% (2.7) - n/a
Gross profit 46.1 55.0 (16)% 54.4 (15)% 47.6 59.6 (20)%
Advertising costs (17.8) (19.0) (6)% (18.8) (5)% (17.8) (18.8) (5)%
General and administrative costs (31.7) (37.9) (16)% (37.7) (16)% (31.9) (36.1) (12)%
Analysed as:
Operating G&A (30.6) (35.9) (15)% (35.6) (14)% (30.6) (35.7) (14)%
Share-based payments (1.3) (0.4) 225% (0.4) 225% (1.3) (0.4) 225%
Software as a Service costs(1) - (0.1) n/a (0.1) n/a
Restructuring costs(1) - (1.3) n/a (1.4) n/a
Other adjusted items(1) 0.2 (0.2) 200% (0.2) 200%
(31.7) (37.9) (16)% (37.7) (16)% (31.9) (36.1) (12)%
Impairment of non-current assets - (9.9) n/a (9.9) n/a
Operating (loss)/profit (3.3) (11.8) 72% (12.0) 72% (2.0) 4.7 (143)%
Analysed as:
Adjusted EBIT (2.0) 5.0 (140)% 4.7 (143)% (2.0) 4.7 (143)%
Adjusted items (1.3) (16.8) (92)% (16.7) (92)% (1.3) (16.7) (92)%
Operating loss (3.3) (11.8) 72% (12.0) 72% (3.3) (12.0) 72%
Operating loss (3.3) (11.8) 72% (12.0) 72%
Depreciation and amortisation 2.2 3.0 (27)% 2.9 (24)%
EBITDA (1.1) (8.8) 87% (9.1) 88%
Add back adjusted items 1.3 16.8 (92)% 16.7 (92)%
Adjusted EBITDA 0.2 8.0 (97)% 7.6 (97)%
Add back inventory liquidation charges 6.5 0.7 829% 0.7 829%
Adjusted EBITDA excluding inventory liquidation and associated costs 6.7 8.7 (23)% 8.3 (19)%
1. Refer to note 6 Adjusted items for further details.
Due to rounding conventions, numbers presented in £m may not sum to the
totals provided. This can also lead to individual numbers being rounded to
zero.
Whilst the 5-year forecast payback for the full year declined to 0.9x (FY24:
1.3x), Q4 performance improved, reaching 1.4x, the highest level in nearly two
years, indicating positive early signs of more efficient, targeted investment.
General and administrative (G&A) costs of £31.7m were 16% lower than
prior year (FY24: £37.9m). Analysed further (see reconciliation of G&A
costs in the APM section at the end of this announcement), operating G&A
costs were £30.6m, a reduction of 15% vs prior year (FY24: £35.9m)
reflecting the annualisation of the cost savings implemented in late FY24.
Share-based payment charges of £1.3m were up £0.9m on FY24; the previous
year's charges were exceptionally low. FY25 also included a £0.6m charge
reflecting the fact that historic LTIPs were surrendered in exchange for the
latest scheme.
This results in an operating loss of £3.3m (an £8.5m improvement on the FY24
loss of £11.8m, which included £9.9m of impairment charges).
Adjusted EBITDA excluding inventory liquidation and associated costs of £6.7m
is down on FY24 (£8.7m).
The Group's operating loss of £3.3m reflects the impact of £1.3m of costs
relating to adjusted items, the key components of which are set out in the
table below:
Adjusted items
FY25 FY24
£m £m
Right-sizing of US inventory
Net movement in US inventory provision 5.4 (2.4)
Loss on the disposal of US inventory - contribution loss (4.6) (2.8)
Right-sizing of US inventory included in contribution 0.8 (5.2)
Bad debt expense - (0.2)
0.8 (5.4)
Under-absorption of current year's winery overheads (2.3) -
Impairment of non-current assets - (9.9)
Other adjusted items 0.2 (1.5)
Total adjusted items (1.3) (16.8)
Cash flow drivers
In FY25, we have seen a significant step change both in the scale and quality
of cash flows. During the year, the Group's net cash excluding lease
liabilities balance increased by £10.5m. The drivers of this are set out in
the table below.
Significant progress continues to be made with the reduction in inventory
levels; both the UK and Australian markets are now at, or close to, 'normal'
levels. Nevertheless, we continue to anticipate net cash excluding lease
liabilities generation from inventory in excess of £40m, most of which will
drop out of the US in the coming years.
Cash flow from operations FY25 FY24 YoY
£m £m %
Operating loss (3.3) (11.8) (72)%
Adjustments for:
Depreciation and amortisation 2.2 3.0 (27)%
Other non-cash charges (0.6) 2.5 (124)%
Impairments - 9.9 (100)%
Change in inventory 36.5 14.9 145%
Change in payables (16.3) (3.4) 379%
Change in Angel funds and other deferred income (4.2) (1.8) 133%
Other working capital movements 5.3 (5.5) 196%
Operating cash flow excluding tax paid 19.6 7.8 151%
Tax and net interest paid (3.1) (4.5) (31)%
Capital expenditure (1.1) (1.1) -
Proceeds from vendor loan note redemption - 9.0 (100)%
Loan arrangement fees paid (2.3) - -
Lease liabilities paid (1.8) (2.0) (10)%
Net movement in net cash excluding lease liabilities 11.3 9.2 23%
Opening net cash excluding lease liabilities 19.6 10.3 90%
Net movement in cash excluding lease liabilities 11.3 9.2 23%
Effect of foreign exchange rates (0.8) 0.1 (900)%
Closing net cash excluding lease liabilities 30.1 19.6 54%
Key movements in the balance sheet are in line with expectations. The
inventory decline reflects reductions in all three regions as the business
works through excess stock, although as previously mentioned, there remains
the equivalent of c£40m net cash excluding lease liabilities which management
expects to generate from excess inventory. Angel funds have fallen more slowly
than members, as these balances are more heavily weighted to core members
(greater than two years maturity). Trade payables reflect both lower inventory
purchases, reduced marketing investments and the timing of payments around the
year end.
Key balance sheet items (£m)
Impact in the year
FY24 FX Non-cash US inventory provision Underlying trading movement FY25
Net Cash excluding lease liabilities 19.6 (0.8) - 11.3 30.1
Inventory including advances to winemakers 144.9 (2.5) 1.7 (36.5) 107.6
Angel funds and other deferred income (68.3) 1.2 - 4.2 (62.9)
Trade and other payables * (38.7) 0.6 - 16.3 (21.8)
* excluding current tax liabilities
Current Trading and Outlook
Post period end and current trading
I am pleased to report that trading to date in FY26 is currently in line with
management expectations which indicates continued improvement in the rate of
repeat revenue decline, and further cash generation.
Good initial progress has been made towards delivering the key priorities in
the new strategic plan:
● £15m of the annualised £23m Medium Term cost-savings target was
actioned in Q1 FY26, taking effect during the quarter
● Liquidation of excess inventory is continuing as planned towards
the Medium Term target of generating £40m of cash
● In line with the new capital allocation priorities announced in
March 2025, we are commencing shareholder distributions
Shareholder distributions policy:
● We are targeting ongoing distributions of up to the lesser of 40%,
of 12-month cash creation, or 12-month adjusted EBITDA excluding inventory
liquidation and associated costs
● As part of this, proposed share buyback of c£2.0m to commence
shortly after the FY25 results announcement
● More significant distributions are envisaged in the Medium Term,
supported by cash generation and growth in profitability
Dominic Neary
Chief Financial Officer
Consolidated income statement
For the 52 weeks ended 31 March 2025
Continuing operations 52 weeks ended 52 weeks ended
31 March 2025
1 April 2024
Note £'000 £'000
Revenue 5 250,216 290,412
Cost of sales (162,414) (178,522)
Fulfilment costs (43,410) (54,582)
Gross profit pre movement in US inventory provision 44,392 57,308
Movement in US inventory provision 1,737 (2,357)
Gross profit 46,129 54,951
Advertising costs (17,805) (19,036)
General and administrative costs (31,662) (37,869)
Impairment of non-current assets - (9,877)
Operating loss¹ 5 (3,338) (11,831)
Finance costs (2,088) (3,359)
Finance income 532 1,422
Loss on early redemption of the vendor loan note - (2,559)
Loss before tax (4,894) (16,327)
Tax 7 (6) (4,516)
Loss for the year (4,900) (20,843)
Loss per share
Basic and diluted 8 (6.6)p (28.3)p
1. Operating loss analysed as:
52 weeks ended 52 weeks ended
31 March 2025
1 April 2024
Note £'000 £'000
Analysed as:
Adjusted EBIT(2) (2,017) 4,974
Adjusted items: 6
Right-sizing of US inventory 776 (5,419)
Under-absorption of current year's winery overheads (2,313) -
Impairment of non-current assets - (9,877)
Other adjusted items 216 (1,509)
Operating loss (3,338) (11,831)
2. Refer to the table in the APM section at the end of this announcement for
analysis of adjusted EBIT identifying inventory liquidation and associated
costs and a reconciliation of adjusted EBIT to adjusted EBITDA.
The notes to the condensed consolidated financial statements following the
primary statements are an integral part of these condensed consolidated
financial statements.
Consolidated balance sheet
As at 31 March 2025
31 March 2025 1 April 2024
Note £'000 £'000
Non-current assets
Goodwill and intangible assets 6,438 5,859
Property, plant and equipment 2,012 2,468
Right-of-use assets 5,802 2,794
Deferred tax assets 4,030 3,425
18,282 14,546
Current assets
Inventory staged payments to winemakers 10,346 13,273
Inventories 97,241 131,581
Trade and other receivables 8,493 10,460
Financial instruments at fair value 70 21
Cash and cash equivalents 9 30,055 31,851
146,205 187,186
Current liabilities
Trade and other payables (21,777) (38,738)
Current tax liabilities (34) (249)
Angel funds and other deferred income (62,872) (68,314)
Lease liabilities (1,595) (1,392)
Provisions (1,575) (1,475)
Borrowings 9 - (12,248)
Customer-funded bonds (35) (35)
Financial instruments at fair value (152) (268)
(88,040) (122,719)
Net current assets 58,165 64,467
Total assets less current liabilities 76,447 79,013
Non-current liabilities
Provisions (99) -
Lease liabilities (4,817) (2,246)
(4,916) (2,246)
Net assets 71,531 76,767
Equity
Share capital 5,550 5,550
Share premium 21,162 21,162
EBT reserve (10) -
Capital redemption reserve 363 363
Currency translation reserve 4,883 6,497
Retained earnings 39,583 43,195
Total equity 71,531 76,767
The notes to the condensed consolidated financial statements following the
primary statements are an integral part of these condensed consolidated
financial statements.
By order of the Board,
Dominic Neary
Chief Financial Officer
4 August 2025
Consolidated cash flow statement
For the 52 weeks ended 31 March 2025
52 weeks ended 52 weeks ended
31 March 2025
1 April 2024
Note £'000 £'000
Operating activities
Net cash flows from operations 9 19,540 7,821
Overseas income tax paid (2,337) (2,812)
Net cash from operating activities 17,203 5,009
Investing activities
Interest received, including interest received on the vendor loan note 528 1,053
Purchase of property, plant and equipment (595) (1,136)
Capitalisation of internally developed software (579) -
Proceeds on disposal of property, plant and equipment 33 61
Proceeds from early redemption of the vendor loan note - 9,000
Net cash (used in)/from investing activities (613) 8,978
Financing activities
Interest paid (1,288) (2,751)
Repayments of principal and interest under lease liabilities (1,757) (2,036)
Debt issuance costs paid (2,268) -
Drawdown of borrowings 17,096 -
Repayment of borrowings (29,447) (16,707)
Net cash (used in) financing activities (17,664) (21,494)
Net (decrease) in cash (1,074) (7,507)
Cash and cash equivalents at the beginning of the year 31,851 39,474
Effect of foreign exchange rate changes (722) (116)
Cash and cash equivalents at the end of the year 9 30,055 31,851
The notes to the condensed consolidated financial statements following the
primary statements are an integral part of these condensed consolidated
financial statements.
Notes to the financial statements
1. General Information
Naked Wines plc (the Company) is a public limited company and is limited by
shares. It is incorporated in the United Kingdom under the Companies Act
2006 and is registered in England and Wales. The Company is the ultimate
controlling party of the Naked Group and its ordinary shares are traded on the
Alternative Investment Market (AIM).
The Company's registered address is Norvic House, 29-33 Chapel Field Road,
Norwich, NR2 1RP, UK. The Group's principal activity is the direct-to-consumer
retailing of wine. The Company's principal activity is to act as a holding
company for its subsidiaries.
2. Basis of preparation
The financial information set out above and below does not constitute the
Company's statutory accounts for the 52 weeks ended 31 March 2025 or 1 April
2024 but is derived from those accounts. Statutory accounts for FY24 have been
delivered to the registrar of companies, and those for FY25 will be delivered
in due course. The auditor has reported on those accounts and their reports
were (i) unqualified, (ii) for the 52 weeks ended 31 March 2025 and 1 April
2024 did not include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying their report and (iii) did not
contain any statements under section 498 (2) or (3) of the Companies Act 2006.
While the financial information included in this preliminary announcement has
been prepared in accordance with the recognition and measurement criteria of
UK-adopted international accounting standards, and as applied in accordance
with the provisions of the Companies Act 2006, this announcement does not
itself contain sufficient information to comply with UK-adopted international
accounting standards.
The condensed consolidated financial statements are presented in GBP and all
values are rounded to the nearest thousand, except when otherwise indicated.
The Group's financial reporting year represents the 52 weeks to 31 March 2025
and the prior financial year, 52 weeks to 1 April 2024.
3. Critical accounting policies, estimates and judgements
Estimates and assumptions underlying the preparation of the financial
statements are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised if the revision
affects only that period, or in the period of revision and future periods if
the revision affects both current and future periods.
Critical accounting judgements
Going concern
In concluding on the going concern basis of the financial statements, the
Directors have made a number of judgments as set out in note 4 Going concern.
The Directors draw attention to the critical nature of these estimates and
judgements in the preparation of these financial statements.
Classification of adjusted items
A number of judgements are made in the presentation of costs and income as
adjusted items. Refer to note 6 Adjusted items for further details.
US overstock inventory provision
For both bulk and cased wine inventory in the US, the full range of reasonably
possible outcomes in the next financial year is inherently difficult to
calculate as it is dependent on key assumptions, such as the expected future
sales of wine and the use of the inventory in future wine projects. The
Directors highlight, therefore, it is
possible that outcomes within the next financial year may differ from their
estimates, and that the magnitude of the inventory provision in the Group's US
business unit could materially change in the next financial year.
Bulk wine (Gross inventory £25.6m, overstock provision £7.9m (FY24: Gross
inventory £32.1m, overstock provision £7.3m)). If management are not able to
realise expected proceeds for bulk wine expected to reach commercial expiry in
the next 24 months, the inventory provision required for this inventory would
increase by £1.4m. However, were management to meet the upper end of its
expectations of expected proceeds, the inventory provision required for this
inventory would reduce by £0.5m. Additionally, for every 10% of the remaining
bulk wine on hand at the balance sheet date planned for bottling and sale in
the normal course of business, which management subsequently could not use in
future wine projects, but for which it could achieve expected secondary market
disposal proceeds, a further £1.0m increase in provision would be required.
Cased wine (Gross inventory £52.3m, overstock provision £2.0m, (FY24: Gross
inventory £73.9m, overstock provision £4.6m)). In the event that cased wine
held on the balance sheet reaches the end of its prime commercial life 12
months earlier than anticipated, the provision required for cased wine
reaching expiry before sale would increase by £0.8m.
Other sources of estimation uncertainty
Goodwill and other non-current assets carrying value
The Group assesses at the end of each reporting period whether indicators of
impairment exist and, if such indicators are identified, the Group calculates
the net recoverable amount of each asset. For goodwill, net recoverable amount
is evaluated at least annually, or more frequently if indicators of impairment
are identified.
Determining whether goodwill and other non-current assets are impaired
requires an estimation of the recoverable amount of the CGU to which the
goodwill and other non-current assets have been allocated, measured at the
higher of value in use and fair value less cost of disposal.
Management is required to make judgements regarding the timing and amount of
future cash flows applicable
to the CGU, based on current budgets and forecasts and then into perpetuity,
taking into account growth rates
and expected changes to sales and operating costs as well as future
maintenance CAPEX requirements and working capital cash flows. Management is
also required to make judgements regarding the appropriate discount rate to
use, reflecting current market assessments of the time value of money and the
risks specific to the CGU.
The Directors draws attention to the goodwill recognised and allocated to its
UK business segment and highlights
the assumptions used to determine the value in use of the CGU, as set out
above, as sources of estimate uncertainty with regard to the remaining
carrying value of goodwill allocated to the UK business.
At year end, due to the headroom between the carrying value of goodwill and
other intangible assets allocated
to the UK business segment and the UK business unit's value in use, the
measurement of recoverable amounts
was not deemed a significant estimate.
Deferred tax asset recognition
The Group has recognised £4.0m of deferred tax assets at the balance sheet
date (FY24: £3.4m) after consideration of their recoverability against future
profits. As a result of updated profit projections, the amount of deferred tax
assets recognised in respect of the US business has increased from £2.8m to
£4.0m, primarily driven by cost savings and the amount of deferred tax assets
recognised in respect of the UK business has decreased to £nil from £0.6m as
a result of the short-term impact of increased duty and the new Producer
Responsibility Obligations.
The Directors note that expected recoverability is based on estimates of
future profitability and, should trading
expectations move adversely in the future, there is a risk that the value of
deferred tax assets expected to be utilised will decrease.
In the process of applying the Group's accounting policies, the Directors
consider there are no further sources of estimation uncertainty that have a
significant risk of causing a material adjustment to the carrying values of
assets and liabilities within the next financial year.
4. Going concern
In order to assess the appropriateness of the going concern assumption, the
Directors have prepared a number of cash flow scenarios extending for a period
of at least 12 months from the date of the approval of these financial
statements ("the going concern assessment period").
Base case scenario
In its base case scenario, the Directors have used recent trading Key
Performance Indicators (KPIs) as well as known factors, including the impact
of planned business development initiatives and planned promotional activity,
to forecast the cash flow of the business. In addition, a conservative
assessment of the impact of strategic development plans and the funding
available from existing cash reserves and the Group's 60-month credit facility
with PNC Bank, which was signed in the current reported period on 8 July 2024,
have been incorporated in order to arrive at the Group's baseline business
plan. The Directors have also considered in their deliberations the principal
risks and uncertainties of the Group. Under this scenario, the Group has
sufficient liquidity to meet the needs of the trading business and to exceed
the springing covenant requirement of its credit facility throughout the going
concern assessment period.
Severe but plausible downside scenario
The Directors have then prepared a severe but plausible downside scenario
incorporating a number of sensitivities and also incorporating available
mitigating actions to both planned business initiatives as well as cost and
cash saving opportunities within the operations of the business.
These sensitivities included:
● a reduction of future trading activity of a further 4% below the
base case scenario, to reflect a continuation of the weakest levels of trading
performance observed in recent periods,
● eliminating all but contractually committed future cost savings,
and
● the removal of all benefits of strategic initiatives.
The following mitigating actions, both of which are within management's
control, were also incorporated:
● changes to expected variable compensation outcomes as a result of
a decline in forecast business performance, and
● reductions in controllable expenditure in marketing, general and
administrative costs, and the purchase of inventory.
In this severe but plausible downside scenario, the Group would maintain
sufficient headroom in the going concern assessment period versus the
springing covenant test requirement of $12m (around £9.6m) of outstanding
available liquidity.
Conclusion
After considering the forecasts, sensitivities and mitigating actions
available and having regard to potential risks and uncertainties in its
operating markets, including the uncertain macroeconomic environment, Naked
Wines has sufficient liquidity to trade and meet the obligations of its credit
facility and therefore meet its liabilities as they fall due for at least 12
months from the date of the approval of the financial statements. For these
reasons, the Board considers it appropriate for the Group and the Company to
adopt the going concern basis in preparing these financial statements.
5. Segmental reporting
IFRS 8 Operating segments requires operating segments to be determined based
on the Group's internal reporting to the Chief Operating Decision Maker
(CODM). The Board has determined that the Executive Directors of the Company
are the CODM of the business. This is on the basis that they have primary
responsibility for the allocation of resources between segments and the
assessment of performance of the segments. In line with the information
presented to the Executive Directors of the Company, the Group presents its
segmental analysis based on the three geographic locations in which the Group
operates.
Performance of these operating segments is assessed on revenue and adjusted
EBIT (being operating profit excluding any adjusted items), as well as
analysing the business between new customer, repeat customer and other lines
of business.
These are the financial performance measures that are reported to the CODM,
along with other operational performance measures, and are considered to be
useful measures of the underlying trading performance of the segments.
Adjusted items are allocated in accordance with how they are reported to the
CODM.
The following table sets out the basis on which the performance of the
business is presented to the CODM. The CODM considers that, as a single route
to market and predominantly consumer-facing business in three geographically
and economically diverse locations, the business comprises three operating
segments. The Group reports revenue from external customers as a single
product group, being principally wine and some spirits.
Unallocated assets include goodwill and other intangible assets held by
holding companies and unallocated impairment charges relate to impairments
recorded against these assets. These assets are unallocated for the purpose of
the segmental disclosure as these are not included in the assets and
liabilities reported to the CODM for each operating segment. For the purposes
of the geographical analysis, these assets are allocated to the UK as these
assets arose as a result of an acquisition by a UK holding company. For
impairment analysis, these assets are allocated to the relevant CGU.
Costs relating to global Group functions are not allocated to the operating
segments for the purposes of assessing segmental performance and consequently
global costs are presented separately. This is consistent with the
presentation of those functions to the CODM.
Revenues are attributed to the countries from which they are earned. The Group
is not reliant on a major customer or group of customers.
52 weeks ended 31 March 2025 Naked Wines US Naked Wines UK Naked Wines Australia Unallocated Total
£'000 £'000 £'000 £'000 £'000
Total segment revenue 111,796 111,401 29,931 - 253,128
Less intercompany revenue (2,912) - - - (2,912)
External revenue 108,884 111,401 29,931 - 250,216
Revenue associated with the US inventory impairment (2,089) - - - (2,089)
Total adjusted revenue (1) 106,795 111,401 29,931 - 248,127
Analysed as:
New Customer sales 9,220 5,112 2,700 - 17,032
Repeat Customer sales 96,160 106,289 27,231 - 229,680
Other revenue 1,415 - - - 1,415
Total adjusted revenue (1) 106,795 111,401 29,931 - 248,127
Investment in New Customers (11,032) (6,529) (3,246) - (20,807)
Repeat Customer contribution 33,541 16,966 6,816 - 57,323
Other contribution(2) (6,310) (345) - - (6,655)
Total contribution after advertising costs(3) 16,199 10,092 3,570 - 29,861
General and administrative costs(4) (9,150) (4,802) (2,303) (15,623) (31,878)
Adjusted EBIT 7,049 5,290 1,267 (15,623) (2,017)
Adjusted items (see note 6)
Right-sizing of US inventory 776 - - - 776
Under-absorption of current (2,313) - - - (2,313)
year's winery overheads
Other adjusted items (2) 101 (2) 119 216
Operating profit/(loss) 5,510 5,391 1,265 (15,504) (3,338)
Finance costs (1,530) (139) (59) (360) (2,088)
Finance income 464 68 - - 532
Profit/(loss) before tax 4,444 5,320 1,206 (15,864) (4,894)
Tax 1,093 (617) (470) (12) (6)
Profit/(loss) for the year 5,537 4,703 736 (15,876) (4,900)
Depreciation 2,093 141 - - 2,234
Total assets 98,189 37,475 17,605 11,218 164,487
Total liabilities 43,834 34,804 9,816 4,502 92,956
Capital expenditure 457 138 - 579 1,174
52 weeks ended 31 March 2025 US UK Australia Total
£'000 £'000 £'000 £'000
Geographical analysis
Revenue 108,884 111,401 29,931 250,216
Non-current assets excluding deferred tax assets 7,062 7,190 - 14,252
1. Total adjusted revenue is calculated as external revenue excluding
revenue associated with the right-sizing of US inventory as analysed in note 6
Adjusted items.
2. Other contribution constitutes loss on inventory liquidation and
associated costs.
3. Contribution after advertising costs is calculated as gross profit
(£46.1m), less advertising costs (£17.8m), excluding transactions associated
with the under-absorption of current year's winery overheads (£2.3m) and
transactions associated with the right-sizing of US inventory included in
contribution (£0.8m) (details in note 6 Adjusted items).
4. Refer to the table in the APM section at the end of this
announcement for a reconciliation of G&A costs to those reported in the
income statement.
52 weeks ended 1 April 2024 Naked Wines US Naked Wines UK Naked Wines Australia Unallocated Total
£'000 £'000 £'000 £'000 £'000
External revenue 131,133 124,411 34,868 - 290,412
Revenue associated with the US inventory impairment (1,899) - - - (1,899)
Total adjusted revenue (1) 129,234 124,411 34,868 - 288,513
Analysed as:
New Customer sales 14,213 6,312 3,109 - 23,634
Repeat Customer sales 114,196 118,099 31,759 - 264,054
Other revenue 825 - - - 825
Total adjusted revenue (1) 129,234 124,411 34,868 - 288,513
Investment in New Customers (14,456) (5,822) (2,992) - (23,270)
Repeat Customer contribution 36,735 20,678 7,843 - 65,256
Other contribution (743) - - - (743)
Total contribution after advertising costs(2) 21,536 14,856 4,851 - 41,243
General and administrative costs(3) (11,351) (6,311) (3,093) (15,514) (36,269)
Adjusted EBIT 10,185 8,545 1,758 (15,514) 4,974
Adjusted items (see note 6):
Right-sizing of US inventory (5,419) - - - (5,419)
Impairment of non-current assets (19) - (696) (9,162) (9,877)
Other adjusted items (259) (424) (307) (519) (1,509)
Operating profit/(loss) 4,488 8,121 755 (25,195) (11,831)
Finance costs (3,249) (39) (69) (2) (3,359)
Finance income 475 - - 947 1,422
Loss on early redemption of the vendor - - - (2,559) (2,559)
loan note
Profit/(loss) before tax 1,714 8,082 686 (26,809) (16,327)
Tax (2,116) (1,120) (364) (916) (4,516)
(Loss)/profit for the year (402) 6,962 322 (27,725) (20,843)
Depreciation 2,472 236 108 57 2,873
Amortisation - - - 100 100
Impairment 19 - 696 9,162 9,877
Total assets 121,701 49,895 21,808 8,328 201,732
Total liabilities 65,379 45,233 11,537 2,816 124,965
Capital expenditure 986 136 14 - 1,136
52 weeks ended 1 April 2024 US UK Australia Total
£'000 £'000 £'000 £'000
Geographical analysis
Revenue 131,133 124,411 34,868 290,412
Non-current assets excluding deferred tax assets 4,483 6,638 - 11,121
1. Total adjusted revenue is calculated as revenue excluding revenue
associated with the right-sizing of US inventory as analysed in note 6
Adjusted items.
2. Contribution after advertising costs is calculated as gross profit
(£55.0m), less advertising costs (£19.0m), excluding transactions associated
with the right-sizing of US inventory included in contribution (£5.2m) and
cancellation of winemaker contracts in Australia (£0.2m) reported within
restructuring costs (details in note 6 Adjusted items).
3. Refer to the table in the APM section at the end of this
announcement for a reconciliation of G&A costs to those reported in the
income statement.
6 Adjusted items
The Directors believe that adjusted EBIT provides additional useful
information for shareholders on trends and
performance. These measures are used for performance analysis. Adjusted EBIT
is not defined by IFRS and therefore may not be directly comparable with other
companies' adjusted profit measures. It is not intended to be a substitute
for, or superior to, IFRS measurements of profit.
In the current year, no inventory provision charges for the US business
segment have been reported as an adjusted item and they are now included
within adjusted EBIT (see reconciliation of adjusted EBIT excluding inventory
liquidation and associated costs to adjusted EBIT at the end of this
announcement for further information). The current year net movement in US
inventory provision (release of £5.4m, FY24: charge of £2.4m) represents the
release of inventory provisions previously provided for as an adjusted item.
Right-sizing of US inventory included in contribution (profit of £0.8m, FY24:
loss of £5.2m) includes the impact of the disposal of the previously provided
for inventory on the secondary market. FY24 comparatives include the net
charge and release of inventory provisions made as adjusted items in that
year.
The adjustments made to reported loss before tax are:
52 weeks ended 52 weeks ended
31 March 2025
1 April 2024
£'000 £'000
Net movement in US inventory provision 5,365 (2,357)
Loss on the disposal of US inventory - contribution loss(1) (4,589) (2,819)
Right-sizing of US inventory included in contribution 776 (5,176)
Bad debt expense(2) - (243)
(a) Right-sizing of US inventory 776 (5,419)
(b) Under-absorption of current year's winery overheads (2,313) -
(c) Impairment of non-current assets - (9,877)
(d) Other adjusted items 216 (1,509)
Total adjusted items (1,321) (16,805)
1. The contribution loss of £4.6m (FY24: £2.8m) is analysed as sales
of £2.0m (FY24: £1.9m) less cost of goods sold of £6.6m (FY24: £4.7m), for
inventory that was provided against that has been sold on the secondary market
as part the right-sizing exercise for less than historic cost of goods.
2. A bad debt expense of £0.2m was recognised in FY24 relating to a
trade receivable due from a bulk wine customer.
(a) Right-sizing of US inventory
As a result of management's US inventory right-sizing exercise strategy, the
Group recorded a net credit of £0.8m
(FY24: net charge of £5.2m), reflecting the release and utilisation of the
inventory provision created in prior years and a contribution loss of £4.6m
(analysed as sales of £2.0m less cost of goods sold of £6.6m), (FY24: £2.8m
(analysed as sales of £1.9m less cost of goods sold of £4.7m)) where
inventory that was provided against has been sold on the secondary market as
part this right-sizing exercise for less than historic cost of goods.
In the prior year, the Group also recognised a £0.2m write off of a trade
receivable relating to a bulk wine customer.
These amounts relate to purchases made on the basis of continued expected
growth following the COVID pandemic and based on the Group's previous strategy
of customer acquisition. As a result of the strategic shift from customer
acquisition to short-term profitability and cash generation, this charge forms
part of an exercise to better align purchasing and inventory management going
forwards, whilst still ensuring the Group holds sufficient inventory to meet
customer demand.
Management has concluded it is appropriate to include the provision, write
off, release and utilisation within adjusted items to provide a more
consistent basis with the comparative adjusted EBIT APM.
(b) Under-absorption of current year's winery overheads
As a result of a reduction in the expected volume of wine to be produced by
the Group's US business unit in the
year, the Group is unable to allocate all of the associated wine production
overhead costs into the wine produced.
Per the relevant accounting standard (IAS 2 Inventories), unallocated
overheads as a result of low production
must be expensed to the income statement in the period in which they are
incurred. The charge reported includes the under-absorption of incurred
production costs of £2.2m and a provision for the remainder of an onerous
third-party production cost relating to current year production of £0.1m.
(c) Impairment of non-current assets
Management has assessed whether indicators of impairment exist for the
remaining non-current assets on the balance sheet, and whether indicators
exist that previously booked impairments may be reversed. At the end of the
current year, management found no evidence of further impairments required,
nor any reversals of previously booked impairments required. The Group has
therefore recognised £nil for the impairment of non-current assets (FY24:
£9.9m).
(d) Other adjusted items
Restructuring costs of £nil (FY24: £1.4m)
In the previous year, the Group undertook a restructuring program seeking to
generate improved efficiency and
reduce costs. Following this review, one-off termination payments and
associated costs were incurred in all three markets.
Software as a Service cost of £nil (FY24: £0.1m)
During the previous year, the Group incurred upfront configuration and
implementation costs relating to the
development of a new ERP system. As material non-recurring expenditure, these
costs were disclosed as an adjusted item.
Fair value movement on foreign exchange contracts and associated unrealised
foreign currency inventory
of £0.2m (FY24: £nil)
The Group commits in advance to buying foreign currency to purchase wine to
mitigate exchange rate fluctuations. UK-adopted international accounting
standards require us to mark the value of these contracts to market at each
balance sheet date. As this may materially fluctuate, we adjust this, and
associated foreign currency inventory revaluation, so as to better reflect our
trading profitability.
7 Tax
(a) Tax charge
52 weeks ended 52 weeks ended
31 March 2025
1 April 2024
£'000 £'000
Current tax
UK tax - -
Overseas tax (487) (958)
Adjustment in respect of prior periods (200) (329)
Current tax charge (687) (1,287)
Deferred tax
Origination and reversal of temporary differences 1,446 (3,468)
Adjustment in respect of prior periods (73) (189)
Effect of change in tax rate on prior period balances (692) 428
Deferred tax credit/(charge) 681 (3,229)
Total tax charge for the year (6) (4,516)
(b) Tax reconciliation
52 weeks ended 52 weeks ended
31 March 2025
1 April 2024
£'000 £'000
Loss before tax (4,894) (16,327)
Tax credit at the standard UK corporation tax rate of 25% (FY24: 25%) 1,224 4,082
Adjustments in respect of prior periods (273) (518)
Disallowable expenditure (8) (1,978)
Overseas income tax at different rates (4) 72
Change in unrecognised deferred tax assets (208) (6,495)
Share-based payments - (107)
Change in tax rate on prior period deferred tax balances (737) 428
Total tax charge for the year (6) (4,516)
Effective tax rate (0.1)% (27.7)%
Deferred tax balances have been calculated at the substantively enacted rate
at which they are expected to reverse.
8 Loss per share
Basic and diluted loss per share is calculated by dividing the profit
attributable to ordinary shareholders by the weighted average number of
ordinary shares in issue of the Company, excluding 135,793 (FY24: 163,856)
shares held by the Naked Wines plc Share Incentive Plan Trust and the Naked
Wines Employee Benefit Trust (which have been treated as dilutive share-based
payment awards). The shares held in the Trusts were allotted ordinary shares
of 7.5 pence per share for a consideration of £10,184 (FY24: £12,289).
The dilutive effect of share-based payment awards is calculated by adjusting
the weighted average number of
ordinary shares in issue to assume conversion of all dilutive potential
ordinary shares. Share options granted over 311,086 (FY24: 5,508,413) ordinary
shares have been excluded from the calculation as they are anti-dilutive.
52 weeks ended 52 weeks ended
31 March 2025
1 April 2024
Basic and diluted loss per share (pence) (6.6)p (28.3)p
Loss for the purposes of basic earnings per share calculation (£'000) (4,900) (20,843)
Weighted average number of ordinary shares used as the denominator in 73,855,634 73,770,908
calculating basic earnings per share
Dilutive potential ordinary shares:
Employee share awards 2,856,105 -
Weighted average number of shares for the purpose of diluted earnings per 76,711,739 73,770,908
share
Total number of shares in issue 74,004,135 74,004,135
As noted above, the denominator for the purposes of calculating both basic and
diluted loss per share has been adjusted to exclude the shares held by the
Naked Wines plc Share Incentive Plan Trust and the Naked Wines Employee
Benefit Trust.
If all the Company's share option schemes had vested at 100%, the Company
would have 78,631,562 issued shares.
There have been no transactions involving ordinary shares or potential
ordinary shares between the reporting date and the date of authorisation of
these financial statements.
9 Notes to the cash flow statement
(a) Cash flows from operations
52 weeks ended 52 weeks ended
31 March 2025
1 April 2024
£'000 £'000
Cash flows from operations
Loss for the year (4,900) (20,843)
Adjustments for:
Tax expense 6 4,516
Net finance costs, including the loss on early redemption of 1,556 4,496
the vendor loan note
Depreciation and amortisation 2,234 2,973
Impairment of non-current assets - 9,877
Loss on disposal of fixed assets 33 253
Net gain arising on early termination of right-of-use assets (1) (444)
and associated lease liability
Fair value movement on foreign exchange contracts (165) (13)
(Decrease)/increase in US inventory provision (1,737) 2,357
Share-based payment charges 1,288 365
Operating cash (outflows)/inflows before movements in working capital (1,686) 3,537
Decrease in inventories 36,480 14,886
Decrease in Angel funds and other deferred income (4,225) (1,814)
Decrease/(increase) in trade and other receivables 5,311 (5,414)
Decrease in trade and other payables (16,340) (3,374)
Net cash flows from operations 19,540 7,821
(b) Analysis of movement in net cash and changes in liabilities arising from
financing activities
1 April 2024 Cash flows Non-cash movements(1) 31 March 2025
£'000 £'000 £'000 £'000
Cash and cash equivalents 31,851 (1,074) (722) 30,055
Borrowings:
Borrowings net of issuance costs (12,248) 14,619 (2,371) -
Customer-funded bonds (35) - - (35)
Lease liabilities (3,638) 1,757 (4,531) (6,412)
(15,921) 16,376 (6,902) (6,447)
Total net cash/(borrowings) 15,930 15,302 (7,624) 23,608
3 April 2023 Cash flows Non-cash movements(1) 1 April 2024
£'000 £'000 £'000 £'000
Cash and cash equivalents 39,474 (7,507) (116) 31,851
Borrowings:
Borrowings net of issuance costs (29,131) 16,707 176 (12,248)
Customer-funded bonds (35) - - (35)
Lease liabilities (5,851) 2,036 177 (3,638)
(35,017) 18,743 353 (15,921)
Total net cash 4,457 11,236 237 15,930
1. Non-cash movements relate to lease additions, amortisation of debt issuance
costs and foreign exchange movements.
10. Events after the balance sheet date
There were no events after the balance sheet date that would have a material
impact on the financial position and performance of the Group.
Glossary of definitions, alternative performance measures (APMs)
and key performance indicators (KPIs)
Definitions
5-Year Forecast Payback The ratio of projected future Repeat Customer contribution we expect to earn Investment measure
from the new customers recruited in the year, divided by the Investment in New
Customers. We forecast contribution at a customer level using a
machine-learning algorithm that weighs several characteristics including
demographics, interactions and transactions forecast over a five-year horizon.
This is then aggregated to a monthly, then annual, cohort level for reporting
purposes. As this is an undiscounted forward-looking estimate it cannot be
reconciled back to reported financial results.
5-Year Lifetime Value (LTV) The future Repeat Customer contribution we expect to earn from customers Investment measure
recruited in a discrete period of time. We calculate this future contribution
using a machine-learning model. Collecting data for a number of key customer
characteristics including retention, order frequency and order value along
with customer demographics and non-transactional data, the machine-learning
algorithms then predict the future (lifetime) value of that customer.
5* customer service The percentage of feedback ratings received by our Customer Happiness teams Customer experience KPI
that expressed 5* satisfaction on a scale of 1 to 5.
Active Angel An Angel that is an active subscriber who has placed an order in the past 12
months.
Active member An active subscriber who has placed an order in the last 12 months.
Adjusted EBIT Operating profit adjusted for acquisition costs, impairment of non-current APM
assets, restructuring costs, fair value movement through the income statement
on financial instruments and revaluation of funding cash balances held and any
items that are either material one-time charges we do not expect to be
repeated or are non-trading related. A reconciliation to operating profit can
be found on the face of the consolidated income statement.
Adjusted EBITDA Adjusted EBIT plus depreciation and amortisation, but excluding any APM
depreciation or amortisation costs included in our adjusted items e.g.
amortisation of acquired intangibles.
Adjusted EBITDA excluding inventory liquidation and associated costs Adjusted EBITDA as defined above, excluding any costs directly arising from APM
the excess level of inventory and the liquidation of that inventory, including
inventory provisions arising in the year.
AGM Annual general meeting
Angel A customer who deposits funds into their account each month to spend on the
wines on our website.
Compound annual growth rate (CAGR) The year-on-year growth rate required for a number of years for a value to
grow from its beginning balance to its ending balance.
Company, Naked or Naked Wines Naked Wines plc
Contribution A profit measure equal to gross profit. We often split contribution into that
from new and repeat customers as they can have different levels of
profitability.
Core members Member with more than 24 months post-acquisition.
Customer Acquisition Cost (CAC) The cost to acquire a new member, calculated as Investment in new customers / Investment measure
new members acquired.
DtC Direct-to-Consumer
EBIT Operating profit as disclosed in the consolidated income statement. APM
EBITDA EBIT plus depreciation and amortisation APM
Group Naked Wines plc and its subsidiary undertakings
Free Cash Flow (FCF) Operating cash flow less capital expenditure APM
Gross Profit Margin % Gross profit as a percentage of revenue
Immature Angel An Angel who has had an account for less than three months.
Glossary of definitions, alternative performance measures (APMs)
and key performance indicators (KPIs) continued
Definitions
Investment in New Customers The Investment in New Customers during the year, including contribution Investment measure
profit/loss from New Customer sales and advertising costs.
LTIP Long-Term Incentive Plan
Mature Angel An Angel who has had an account for more than three months.
Member A subscriber with an Angel or Wine Genie membership.
Member Retention Rate The percentage of members at the start of the financial year that are retained
at the end of the financial year.
Net cash excluding lease liabilities The amount of cash we are holding less borrowings at year end excluding lease APM
liabilities.
New Customer A customer who, at the time of purchase, does not meet our definition of a
repeat customer; for example, because they are brand new, were previously a
repeat customer and have stopped subscribing with us at some point or cannot
be identified as a repeat customer.
New Customer sales Revenues derived from transactions with customers who meet our definition of a
new customer. A reconciliation of total sales to New Customer sales is shown
in note 5 Segmental reporting.
Net Promoter Measures customer loyalty and satisfaction based on the likelihood of
Score (NPS) customers to recommend Naked to others. (NPS = % Promoters − % Detractors)
Other revenue Revenue from all activity on secondary markets with the purpose of optimising
inventory holding levels. Other revenue reported on an adjusted basis is a
subset of total other revenue which only includes transactions relating to
inventory which has not previously been provided for as an adjusted item.
Other contribution The profit or loss attributable to sales meeting the definition of other
revenue.
Product availability The average percentage of products we have defined as core to the portfolio Customer experience KPI
that is available to our customers throughout the year.
Repeat Customer A customer (Angel) who has subscribed and made their first monthly
subscription payment.
Repeat Customer contribution The profit attributable to sales meeting the definition of Repeat Customer Investment measure
sales after fulfilment and service costs. A reconciliation of adjusted EBIT
to Repeat Customer contribution is shown in note 5 Segmental reporting.
Repeat Customer contribution margin Repeat Customer contribution as a percentage of Repeat Customer sales. Investment measure
Repeat Customer sales These are the revenues derived from orders placed by customers meeting our
definition of a repeat customer at the time of ordering. A reconciliation of
total sales to Repeat Customer sales is shown in note 5 Segmental reporting.
Repeat Customer sales retention Total sales delivered over a period of time, from customers in place in the Investment measure
same period last year, as a % of the prior period sales.
Return on Equity and Adjusted EBITDA excluding inventory liquidation and associated costs as a Investment measure
Cash (ROEC)% percentage of equity and debt including cash and cash equivalents.
Revenue Per Member (RPM) Repeat Customer sales divided by the number of closing members
SIP Share Incentive Plan
Total Addressable Market (TAM) TAM represents the available market which Naked sees as a revenue opportunity
which it could serve.
Wine Genie A customer who signs up to receive tailor-made cases at the frequency of their
choice. This type of customer does not deposit funds into an account.
Wine quality - The percentage of 'Yes' scores given by customers in the year indicating that Customer experience KPI
"Buy it again" ratings the customer would buy the product again.
Year 1 Payback A short-term payback measure showing the actual return in this financial year Investment measure
of our investment in the prior year.
Alternative performance measures (APMs)
Reconciliation of reported to adjusted and comparable FY24 results
52 weeks ended 31 March 2025 52 weeks ended 1 April 2024
Reported Adjusted items Adjusted Reported FX Reported @ constant FX Adjusted items Adjusted @ constant FX
£m £m £m £m £m £m £m £m
Sales Group
New Customer sales 17.0 - 17.0 23.6 (0.2) 23.4 - 23.4
Repeat Customer sales 229.7 - 229.7 264.1 (2.5) 261.6 - 261.6
Other revenue 3.5 (2.1) 1.4 2.7 - 2.7 (1.9) 0.8
250.2 (2.1) 248.1 290.4 (2.7) 287.6 (1.9) 285.7
Naked Wines US
New Customer sales 9.2 - 9.2 14.2 (0.2) 14.0 - 14.0
Repeat Customer sales 96.2 - 96.2 114.2 (1.7) 112.5 - 112.5
Other revenue 3.5 (2.1) 1.4 2.7 - 2.7 (1.9) 0.8
108.9 (2.1) 106.8 131.1 (1.9) 129.2 (1.9) 127.3
Naked Wines UK
New Customer sales 5.1 - 5.1 6.3 - 6.3 - 6.3
Repeat Customer sales 106.3 - 106.3 118.1 - 118.1 - 118.1
111.4 - 111.4 124.4 - 124.4 - 124.4
Naked Wines Australia
New Customer sales 2.7 - 2.7 3.1 (0.1) 3.0 - 3.0
Repeat Customer sales 27.2 - 27.2 31.8 (0.8) 31.0 - 31.0
29.9 - 29.9 34.9 (0.9) 34.0 - 34.0
Contribution after advertising costs Group
Investment in New Customers (20.8) - (20.8) (23.3) 0.3 (23.0) - (23.0)
Repeat Customer contribution 57.3 - 57.3 65.3 (0.7) 64.6 - 64.6
Repeat contribution margin (%) 25% - 25% 25% - 25% - 25%
Other contribution (8.2) 1.5 (6.7) (5.9) 0.1 (5.8) 5.1 (0.7)
28.3 1.5 29.9 36.1 (0.3) 35.8 5.1 40.9
Naked Wines US
Investment in New Customers (11.0) - (11.0) (14.5) 0.3 (14.2) - (14.2)
Repeat Customer contribution 33.5 - 33.5 36.7 (0.5) 36.2 - 36.2
Repeat contribution margin (%) 35% - 35% 32% - 32% - 32%
Other contribution (7.8) 1.5 (6.3) (5.9) 0.1 (5.8) 5.1 (0.7)
14.7 1.5 16.2 16.3 (0.1) 16.2 5.1 21.3
Naked Wines UK
Investment in New Customers (6.5) - (6.5) (5.8) - (5.8) - (5.8)
Repeat Customer contribution 17.0 - 17.0 20.7 - 20.7 - 20.7
Repeat contribution margin (%) 16% - 16% 18% - 18% - 18%
Other contribution (0.3) - (0.3) - - - - -
10.1 - 10.1 14.9 - 14.9 - 14.9
Naked Wines Australia
Investment in New Customers (3.2) - (3.2) (3.0) 0.1 (2.9) - (2.9)
Repeat Customer contribution 6.8 - 6.8 7.8 (0.1) 7.7 - 7.7
Repeat contribution margin (%) 25% - 25% 25% - 25% - 25%
3.6 - 3.6 4.8 - 4.8 - 4.8
General and administrative Naked Wines US (9.2) - (9.2) (11.9) 0.2 (11.7) 0.5 (11.2)
Naked Wines UK (4.7) (0.1) (4.8) (6.7) - (6.7) 0.4 (6.3)
Naked Wines Australia (2.3) - (2.3) (3.2) 0.1 (3.1) 0.1 (3.0)
Unallocated (15.5) (0.1) (15.6) (16.1) - (16.1) 0.5 (15.6)
Group (31.7) (0.2) (31.9) (37.9) 0.3 (37.6) 1.5 (36.1)
Other Impairment - - - (9.9) - (9.9) 9.9 -
EBIT Naked Wines US 5.5 1.5 7.0 4.5 (0.1) 4.4 5.6 10.0
Naked Wines UK 5.4 (0.1) 5.3 8.1 - 8.1 0.4 8.5
Naked Wines Australia 1.3 - 1.3 0.8 (0.1) 0.7 1.0 1.7
Unallocated (15.5) (0.1) (15.6) (25.2) - (25.2) 9.7 (15.5)
Group (3.3) 1.3 (2.0) (11.8) (0.2) (12.0) 16.7 4.7
Alternative performance measures (APMs) continued
Repeat Customer contribution margin
Naked Wines US Naked Wines UK Naked Wines Australia Group
52 weeks ended 31 March 2025
Repeat Customer sales £m 96.2 106.3 27.2 229.7
Repeat Customer contribution £m 33.5 17.0 6.8 57.3
Repeat contribution margin % 34.8% 16.0% 25.0% 24.9%
52 weeks ended 1 April 2024
Repeat Customer sales £m 114.2 118.1 31.8 264.1
Repeat Customer contribution £m 36.7 20.7 7.8 65.3
Repeat contribution margin % 32.1% 17.5% 24.5% 24.7%
General and administrative costs reconciliation
52 weeks ended 52 weeks ended
31 March 2025
1 April 2024
£m £m
G&A costs per income statement (31.7) (37.9)
Add back adjusted items (see note 6):
Disposal of US inventory - bad debt expense - 0.2
Restructuring costs - 1.3
Software as a Service costs - 0.1
Fair value movement on foreign exchange contracts (0.2) -
G&A costs per segmental reporting in note 5 (31.9) (36.3)
Add back share-based payment charges 1.3 0.4
Operating G&A costs (30.6) (35.9)
Net cash excluding lease liabilities
31 March 2025 1 April 2024
£m £m
Cash and cash equivalents 30.1 31.9
Borrowings:
Borrowings net of issuance costs - (12.3)
Net cash excluding lease liabilities 30.1 19.6
Inventory liquidation and associated costs
52 weeks ended 52 weeks ended
31 March 2025
1 April 2024
£m £m
Adjusted EBITDA excluding inventory liquidation and associated costs 6.7 8.7
Depreciation and amortisation (2.2) (3.0)
Adjusted EBIT excluding inventory liquidation and associated costs 4.5 5.7
less inventory liquidation and associated costs(1):
Net loss on inventory disposal with no associated inventory provision (1.7) (0.7)
release which was previously created as an adjusted item
US inventory provision(2) (3.6) -
Winemaker contract cancellation payments (0.6) -
Holding costs for bulk wine held for sale on the secondary market (0.6) -
Adjusted EBIT (2.0) 5.0
Adjusted items (see note 6 Adjusted items) (1.3) (16.8)
EBIT (3.3) (11.8)
1. See also note 6 Adjusted items for net profit or loss on disposal
of inventory made with an associated provision previously provided for as an
adjusted item.
2. In FY25, overstock inventory provision created in the US business
unit are charged to adjusted EBIT and amount to £3.6m as reported here (FY24:
charge of £5.5m included in adjusted items). Net movement in US inventory
provision in FY24 and reported in adjusted items amounted to £2.4m (see note
6 Adjusted items) being provision created as set out above and utilisation of
£3.2m.
Alternative performance measures (APMs) continued
Reconciliations of new APMs
Free Cash Flow 52 weeks ended 31 March 2025 52 weeks ended 1 April 2024
£m £m
Operating cash flow excluding tax paid per note 9 19.6 7.8
Less capital expenditure (1.1) (1.1)
Free Cash Flow 18.5 6.7
Return on Equity and Cash % 52 weeks ended 31 March 2025 52 weeks ended 1 April 2024
Adjusted EBITDA excluding inventory liquidation and associated costs (£m) 6.7 8.7
Equity (£m) 71.5 76.8
Debt per note 9(b) Analysis of movement in net cash and changes in liabilities 6.4 15.9
arising from financing activities (£m)
Equity and debt (£m) 77.9 92.7
Return on Equity and Cash % 9% 9%
Customer Acquisition Cost 52 weeks ended 31 March 2025 52 weeks ended 1 April 2024
Investment in new customers (£m) 20.8 23.3
New customers acquired ('000) 281 318
Customer Acquisition Cost £ 74 73
Revenue Per Member 52 weeks ended 31 March 2025 52 weeks ended 1 April 2024
Repeat Customer sales (£m) 229.7 264.1
Closing members ('000) 581 654
Revenue Per Member £ 395 404
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