REG - Virgin Wines UK PLC - Interim Results
26/03/2025 07:16
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RNS Number : 1422C Virgin Wines UK PLC 26 March 2025
26 March 2025
Virgin Wines UK plc
("Virgin Wines", the "Company" or the "Group")
Interim Results
Resilient first-half performance underpinned by 9% growth over the important
Christmas trading period and launch of a 5-year strategic Growth Plan to drive
future shareholder value
Virgin Wines UK plc (AIM: VINO), one of the UK's largest direct-to-consumer
online wine retailers, is pleased to announce its unaudited interim results
for the six months ended 27 December 2024 (the "Period").
Financial highlights
· Total revenue of £34.1 million(1) (H1 2024: £34.3m)
· Strong profitability driven by operational efficiency, with PBT up 20% to
£1.3m (H1 2024: £1.1m) while EBITDA remained in line at £1.6m
· Strong balance sheet, with no debt, £23.7m of gross cash and net cash(2) of
£17.3m, an increase of 57% year-on-year (H1 2024: £11.0m)
Strategic highlights
· Strong Christmas trading performance
o Revenue up 6.7% in the six weeks to 27 December 2024 to £13.5m with the
December period up 9% year-on-year delivering record sales for a single month
outside the covid affected period
· Active and loyal customer base, with a continued focus on high-quality
customer acquisition
o Leveraging the underlying strengths of the operating model and a continued
focus on strategic marketing and promotional activity to drive loyalty and
growth
o New customer acquisition for the Group up 29% in the Period and by 25% during
December 2024
o 12-month rolling cancellation rate of WineBank, the Group's main subscription
offering, at an all-time low of 14.9%
· Operational efficiencies reinforce position as the lowest cost to serve
o Cost per case reduced by 10.1% during the Period, and by 5.4% in December,
despite the 10% increase in the National Living Wage and cost pressure on
paper and energy affecting packaging and courier costs
o Warehouse Management System (WMS) continues to drive further efficiency
benefits, with the Company's award-winning Customer Service team rated
'Excellent' on Trustpilot
· New Warehouse Wines brand proposition delivered encouraging growth
o Warehouse Wines ended the Period with 17,600 customers and has generated £1
million of revenue in the half year to end Dec 2024
o The Company is encouraged with the progress made and has invested in its
customer acquisition and marketing while leveraging the core operational
infrastructure of the Group
· Continued high growth in the Commercial channel
o Year-on-year revenue up 17% during the Period, and 32% in December
o The Company is expanding its partnership with Moonpig(3) following an
agreement for Virgin Wines to manage the growth of their alcohol category
o Strategic partnership with Ocado launched in October delivering positive early
results, with further partnership opportunities in the pipeline
Strategic Growth Plan and Capital Allocation Policy
· As stated separately this morning, Virgin Wines has announced a strategic
growth plan focusing on four key areas: customer acquisition, commercial
partnerships, Warehouse Wines and the development of a mobile app, projecting
revenues to increase to £100 million over the duration of the plan. The
announcement also sets out the Group's capital allocation policy
Current trading and outlook
· Second half trading has started positively, and our product offering continues
to resonate with our customer base
· The acceleration in new customer acquisitions seen in H1 2025, coupled with
the resilience of trading, our position on being the lowest cost to serve
direct-to-consumer online wine retailer and the strength of the Group's
balance sheet provides the Board with confidence to implement an ambitious
5-year Strategic Growth Plan.
· Post-period end, the Company was pleased to announce the appointment of Amanda
Cherry to the Board as Chief Financial Officer in a planned transition as
Graeme Weir enjoys a well-earned retirement. Amanda will work alongside Jay
Wright and the executive team to deliver the next phase of growth
(1) Continued to increase market share and outperformed the online drinks market
(2) Net cash of £17.3m is total cash of £23.7m less Wine Bank customer deposits
of £6.4m. The business remains debt free with customer deposits held in a
separate ring-fenced account
(3) Both teams continue to work closely, with new developments expected to be
announced in due course
Jay Wright, Chief Executive Officer at Virgin Wines, commented:
"I am pleased to report a positive first-half performance, with the business
delivering encouraging results, particularly during the peak Christmas trading
season.
Our strategy of acquiring high quality customers at an industry-leading low
cost per recruit, while maximising the quality and value of our wines through
our unique open-source buying model, continues to position us well to navigate
market headwinds.
We have introduced a number of new strategic initiatives to diversify our
offering and enable us to appeal to as many potential customers as possible.
Our Warehouse Wines value proposition continues to deliver positive results,
while our Vineyard Collection range and the premium Australian Five O'clock
Somewhere Wine Club showcase the unquestioned expertise of our Buying Team
alongside our network of winemakers around the world.
We continue to work with a large range of partners to deliver increased
numbers of new customers whilst strengthening our relationship with key
commercial partners such as Moonpig and Ocado
Today we also announced our Growth Plan and Capital Allocation Plan. This is
an ambitious and transformational change in our business strategy and
investment case, which we are excited to implement over the coming years.
Virgin Wines has a unique and differentiated low-cost business model, a loyal
and active customer base and a highly experienced team that has consistently
delivered industry leading results. We are confident that the Company will
execute the new Growth Plan announced today and deliver increased value for
shareholders."
Enquiries:
Virgin Wines UK plc Via Hudson Sandler
Jay Wright, CEO
Graeme Weir, CFO
Cavendish (Nominated Adviser and Sole Broker) Tel: +44 (0) 20 7908 6000
Matt Goode
Carl Holmes
Seamus Fricker
Elysia Bough
Hudson Sandler virginwines@hudsonsandler.com (mailto:virginwines@hudsonsandler.com)
(Public Relations) Tel: +44 20 7796 4133
Dan de Belder
Harry Griffiths
Eloise Fleet
Notes to editors:
About Virgin Wines
Virgin Wines is one of the UK's largest direct-to-consumer online wine
retailers. It is an award-winning business which has a reputation for
supplying and curating high quality products, excellent levels of customer
service and innovative ways of retailing.
The Company was established in 2000 by the Virgin Group and was subsequently
acquired by Direct Wines in 2005 before being bought out by the Virgin Wines
management team, led by CEO Jay Wright and CFO Graeme Weir, in 2013. It listed
on the London Stock Exchange's Alternative Investment Market (AIM) in 2021.
Virgin Wines is headquartered in Norwich, with two fully bonded, national
distribution centres in Preston and Bolton. It stocks over 650 wines sourced
from more than 40 trusted winemaking partners and suppliers around the world
which it sells to a large active customer base, the majority of whom are on
one of the Group's subscription schemes.
The Company drives the majority of its revenue though its fast-growing
WineBank service, that has over 137k members, using a variety of marketing
channels, as well as through its 30 strong Wine Advisor team, its Wine Plan
channel and its Pay As You Go service.
Along with its extensive range of award-winning products, Virgin Wines was
delighted that its flagship WineBank service was awarded 'Wine Club of the
Year' at the 2024 IWC Awards, was named Online Drinks Retailer of the Year for
2022 at the Drinks Retailing Awards, as well as receiving the bronze award for
Contact Centre of the Year at the 2022 UK National Contact Centre Awards. In
addition, in 2023 the Group's Head of Buying, Sophie Lord, was named Buyer of
the Year by Decanter magazine.
https://www.virginwinesplc.co.uk
Chief Executive Officer's Statement
Business overview
Overall, we are pleased with our performance during the first half of the
financial year on the back of an excellent and highly encouraging Christmas
trading period with many notable highlights. The creditable performance was
underpinned by a number of strategic initiatives to grow the customer base and
optimise customer acquisition, as well as strategic marketing and focused
promotional activity. This resulted in a 25% year-on-year increase in new
recruits during December.
This has laid the foundation and acted as a test period for our next phase of
investment and growth.
In conjunction with these results, we have also today released details of a
new 5-year Growth Strategy and Capital Allocation Plan devised with the
objective of propelling annualised revenue to at least £100m at the end of
that period and with a commensurate improvement in profitability. Further
details can be found in a separate RNS announcement released this morning.
Trading Overview
I am pleased to report that we have delivered a positive H1 2025 performance
in spite of a challenging market environment, which included a particularly
strong Christmas trading period. As a critical time of year for the Group,
this is naturally very pleasing and demonstrates that our product offering
clearly resonates with our customers. Revenue during December was up 9%
year-on-year, achieving the highest sales period ever for the business outside
the Covid affected years. During the 6 weeks to 27(th) December, revenue
increased by 6.7% year-on-year.
The lower customer base at the start of the year led to an expected fall in
year-on-year revenue during Q1 2025. However, the positive Christmas trading
period led to revenue being broadly in line with the same period last year at
£34.1m during the first half (H1 2024 £34.3m). This represents a significant
outperformance against the UK online drinks market that has seen revenue
decline by 5% over the past year*.
Despite a highly inflationary environment and significant cost pressures,
EBITDA remained stable at £1.6m, whilst PBT rose 20% year-on-year to £1.3m,
supported by the additional interest generated from our healthy cash
position.
Our constant drive to be the lowest cost to serve in the sector continued to
deliver a significant out-turn, and I am therefore delighted to report a 10.1%
reduction in operating variable costs compared to H1 2024. Increases in both
productivity and efficiency ensured all five elements that make up our
operating variable cost line reduced. This is despite a substantial increase
in the National Living Wage that affected costs within both our warehouse and
customer service teams, alongside the continued inflationary pressure we are
incurring on energy and paper.
We saw positive trends in several areas, including a 29% increase year-on-year
in new customers acquired across the business in H1, enhanced loyalty from our
137k strong WineBank members and continued growth in our Commercial business.
Our recently launched Warehouse Wines value proposition also performed
encouragingly, delivering £1m of revenue in H1 2025, and the continued
implementation of our brand refresh has contributed up to a 50% increase in
the conversion rate of our customer acquisition journey.
The business continues to be cash generative and debt free, with net cash at
the period end of £17.3m, as well as a further £6.4m of customer WineBank
deposits which are held in a separate ring-fenced account. This strong cash
position, coupled with encouraging developments in several key trading areas,
gives the business the confidence to invest more aggressively in growth.
Today, alongside our Interim Results, we are delighted to release our 5 Year
Growth Strategy and Capital Allocation Plan. The Board and management team are
greatly enthused by this strategy and we are confident it will deliver
meaningful shareholder returns over the medium term.
*Source: IMRG Online Retail Sales Tracker December '24
Customer Acquisition
Expanding the number of new customers acquired across the Group has been a key
priority and we were pleased that, by developing an increased number of
propositions, introducing new offer mechanics, alongside better on-site
conversion, we were able to deliver a 29% increase in new customers acquired
year-on-year.
Despite this significant increase, the cost per recruit decreased modestly to
£14.92 (£15.75 H1 2024) with the total marketing spend invested increasing
by 23% year-on-year against a 29% increase in recruits. We maintain a
disciplined model to customer recruitment, which positions us well to deliver
profitable growth over the next five years.
Continuing to drive higher numbers of new customers remains a key strategic
imperative and is an area where we are planning to be more ambitious while
continuing to prioritise return on investment and lifetime value.
Strong retention from a loyal customer base
WineBank membership increased to 137k, up 2% year on year. This is a result of
both the positive customer acquisition activity and the loyalty of existing
members. The 12-month rolling cancellation rate hit an all-time low of just
14.9%, down from 16.8% the previous year and 17.8% in Dec '22.
Our customer retention rate, which measures the amount of revenue from
customers that purchased the previous year, has improved to 84% from 81% last
year and our sales retention rate stands at 90%, a testament to the ongoing
loyalty of our customers and the value they receive from our award-winning
customer service and exclusive portfolio of wines.
We continue to utilise a selection of sales channels to interact with our
customers with revenue generated through email, SMS, web and our 30 Wine
Advisors all being strong contributors.
Our customers continue to rate our wines highly, with the full portfolio
averaging 4.2 out of 5 and our Trustpilot rating has increased to 4.5 out of 5
over the past year with our business rated 'Excellent' from over 24k reviews.
Our loyal customer base positions us well to mitigate market pressures and we
look forward to building on this strong foundation as we execute our new
Growth Strategy.
Growing our Commercial channel
Our Commercial business continues to go from strength to strength, delivering
17% year-on-year growth, and offers exciting growth prospects for the future.
We are delighted to have secured an exciting partnership with Ocado where an
initial selection of 55 different wines are available to purchase by the
bottle. 17k bottles were sold through the partnership over Q2 2025, with both
parties being encouraged by the initial results and looking forward to
developing the partnership further.
Similarly, our relationship with Moonpig continues to deepen, with both
parties having recently agreed for Virgin Wines to manage the full alcohol
category within Moonpig, which should lead to a significantly increased range,
and volume of sales, through our joint efforts.
With a number of further opportunities in the pipeline, a first class
corporate sales team in place, sales through corporate gifting remaining
strong over the Christmas period and our existing train supply partnerships
renewed, we see the development of our Commercial channel as a major growth
driver, as set out in our separate Growth Strategy announcement today.
Warehouse Wines
We continue to be encouraged by the early growth of our value proposition,
Warehouse Wines. The brand is designed to target the supermarket buyer who is
looking for everyday low prices, without a subscription scheme, delivery to
their door and providing the superior value a wine specialist can bring. With
25 years' experience in sourcing and blending outstanding wines from across
the globe, we can deliver quality/value ratios that far exceed those available
from mass branded products. With sales of £1m in H1 2025 and entirely
positive customer feedback, we are on course to reach our first-year
objectives and see substantial opportunities for future growth to deliver
circa 10% of Group revenue.
Current trading and Outlook
The business has traded in line with market expectations, which included the
strong trading performance in Q2 and particularly the key peak trading period
over Christmas. We trialled a number of exciting initiatives during the
Christmas period, which gives us confidence in future initiatives and
investment, and we look forward to implementing these on a permanent basis.
In March, we were delighted to be named Online Wine Retailer of the Year at
the 2025 People's Choice Wine Awards. The award is unique in the sector as
it's voted for by wine consumers rather than industry judges and is therefore
further evidence that Virgin Wines is connecting with, and delighting, wine
enthusiasts across the UK.
The Board has taken the opportunity over recent months to review the short to
medium term strategic direction of the business and has concluded that, in
order to deliver future shareholder value, the Group's strong cash reserves
should be used to accelerate the growth of the business by investing in a
number of key growth drivers. Furthermore, funds will be used to generate
shareholder returns via the introduction of a share buyback programme as
approved by shareholders at the recent General Meeting. The investment to
drive top line revenue growth is necessary to enable the future success of the
Group. The additional investment being made will naturally have a short-term
impact on profitability, however, given the strength of the balance sheet,
alongside the operational and cost discipline demonstrated over many years,
the Board has confidence to pursue this strategy and the next phase of growth.
The current trading environment is not without its challenges. In February,
the Group saw the most significant adjustment to the duty regime ever, which
has increased the tax paid on a bottle of wine by up to 54p depending on the
alcohol by volume of the product. In addition, the administrative burden on
managing duty has also significantly increased. However, we are mitigating the
impact of this, partly through pricing but also in the short term by
pre-paying the duty on as much stock as possible prior to the adjustment,
again demonstrating the benefits of a strong balance sheet.
The sector is also set to be subjected to the new Extended Producer
Responsibility (EPR) tax which we believe will add around £900k per annum of
additional year-on-year costs alone. This would equate to a minimum of another
10p to the cost price of each bottle if added to the cost of sales. EPR is a
policy that requires businesses to pay for the environmental impact of their
products and packaging. This includes the cost of recycling, collecting, and
disposing of packaging. EPR is intended to reduce the amount of packaging
waste and its environmental impact. Business will be liable to pay EPR fees
based on the amount of packaging they put into the market.
It is therefore vital the business continues to scale to drive cost
efficiencies, increased productivity and economies of scale. We are
confident our new 5 Year Growth Strategy will deliver such improvements.
This is an exciting time for Virgin Wines and the whole team is highly
motivated to deliver our new Growth Strategy, which is expected to deliver
increased revenue growth, enhanced long-term profitability and create
incremental shareholder value.
FINANCIAL REVIEW
Profit before tax
Against a backdrop of economic uncertainty Profit before tax increased by 20%
to £1.3m (H1 2024: £1.1m). This reflected the continued stability of the
unique business model including the loyalty of the active customer base,
disciplined cost management and strong working capital controls generating
free cash. This discipline has always been a feature of the business and one
that will continue, notwithstanding the new strategy around investment and
driving customer acquisition harder.
Revenue
Group revenue was broadly in line at £34.1m (H1 2024: £34.3m). This was
supported by an improved performance in Q2 which saw year on year revenue
improve by 2.1%.
Gross profit
Reported Gross Profit margin decreased by 1.4% to 29.7% (H1 2024: 31.1%). This
was the result of a more proactive and determined approach to new customer
acquisition in terms of strength of offers and the trialling of new customer
acquisition formats. Reported Gross Profit margin includes the cost of wine,
duty, packaging and delivery costs.
EBITDA
EBITDA was unchanged at £1.6m, (H1 2024: £1.6m) despite a highly
inflationary environment and significant cost pressures, which were mitigated
by a 10.1% reduction in operating variable costs compared to H1 2024.
Share based payments
The Group provided for a share-based payment expense of £34k (H1 2024:
£137k) relating to the share based long-term incentive plan for the
leadership team.
Finance income
Finance income improved to £372k (H1 2024: £161k) frombank interest earned
on cash balances. The improvement is due to strong working capital controls,
in particular ensuring inventory levels are appropriate for the scale of the
operation.
Finance expenses
Finance expenses of £68k (H1 2024: £80k) relates to the interest charge for
Right of Use Assets. The Group has no borrowings so there are no expenses
relating to servicing overdrafts or loans.
Earnings per share
Earnings per share increased to 1.6p from 1.4p in H1 2024 due to the increase
in Group Profit. Diluted earnings per share were 1.6p (H1 2024: 1.4p).
Dividend
The Board is not recommending the payment of an interim dividend, but it will
keep the Group's dividend policy under review as part of the decision-making
process around capital allocation and the growth strategy announced
separately.
Foreign currency
All Group income is derived from UK activity and denominated in GBP. The Group
purchases supplies, mainly wine, from the global market predominantly in
Euros, US Dollars and Australian Dollars. The Group hedges its foreign
currency purchases to provide clarity on future cost prices.
Inventory
Closing Inventory was £6.5m, 22% or £1.9m lower than December 2023 (H1 2024:
£8.4m). We continue to monitor the wine range and supply chain to ensure we
optimise the carrying value of inventories.
Cash
Gross cash at the period end was £23.7m, an increase on H1 2024 which was
£17.4m. The net cash in hand excluding WineBank deposits was up £6.3m to a
healthy £17.3m, H1 2024: £11.0m. WineBank deposits remain unchanged at
£6.4m, H1 2024: £6.4m. The WineBank deposits are ring fenced and are not
used to fund stock purchases or working capital.
Jay Wright
Chief Executive Officer
26 March 2025
Condensed consolidated statement of comprehensive income
Note Unaudited Unaudited
27 December 29 December
2024 2023
£'000 £'000
Revenue 34,084 34,286
Cost of sales (23,962) (23,632)
Gross profit 10,122 10,654
(9,153) (9,678)
Operating expenses
3 969 976
Operating profit
5 372 161
Finance income
Finance costs 6 (68) (80)
1,273 1,057
Profit before taxation
(352) (256)
Taxation
921 801
Profit for the financial period and total comprehensive income
7 1.6 1.4
Basic earnings per share (pence)
7 1.5 1.4
Diluted earnings per share (pence)
Condensed consolidated statement of financial position
Unaudited Unaudited Audited
Note 27 December 2024 29 December 2023 28 June
2024
£'000 £'000 £'000
ASSETS
Non-current assets
Intangible assets 8 11,067 11,145 11,159
Property, plant and equipment 9 133 306 202
Right of use assets 10 2,120 2,620 2,370
Deferred tax asset 28 240 194
Total Non-current assets 13,348 14,311 13,925
Current assets
Inventories 6,517 8,400 5,868
Trade and other receivables 11 2,656 2,689 2,684
Derivative financial instruments 11 6 -
Cash and cash equivalents 23,661 17,412 18,370
Total current assets 32,845 28,507 26,922
Total assets 46,193 42,818 40,847
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables 12 (19,067) (16,718) (14,425)
Derivative financial instruments - - (3)
Lease liability (544) (534) (539)
Loans and borrowings - - -
Total current liabilities (19,611) (17,252) (14,967)
Non-current liabilities
Provisions (390) (344) (367)
Lease liability (1,917) (2,462) (2,193)
Total non-current liabilities (2,307) (2,806) (2,560)
Total liabilities (21,918) (20,058) (17,527)
Net assets 24,275 22,760 23,320
Equity
Share capital 13 560 558 560
Share premium 11,989 11,989 11,989
Own share reserve (3) - (3)
Merger reserve 65 65 65
Other reserve 586 539 552
Retained earnings 11,078 9,609 10,157
Total Equity 24,275 22,760 23,320
Condensed consolidated statement of changes in equity
Called Share Own Merger Other Retained Total
up premium share reserve reserve earnings Shareholders'
share reserve funds
capital
£'000 £'000 £'000 £'000 £'000 £'000
1 July 2023 558 11,989 - 65 402 8,808 21,822
Profit for the financial year - - - - - 801 801
Share-based payments - - - - 137 - 137
29 December 2023 unaudited 558 11,989 - 65 539 539 22,760
29 June 2024 560 11,989 (3) 65 552 10,157 23,320
Profit for the financial year - - - - - 921 921
Share-based payments - - - - 34 - 34
27 December 2024 unaudited 560 11,989 (3) 65 586 11,078 24,275
Condensed consolidated statement of cash flows
Unaudited Unaudited
27 29 December 2023
December 2024
£'000 £'000
Cash flows from operating activities
Profit before taxation 1,273 1,057
Adjustments for:
Depreciation and amortisation 643 642
Net finance costs (304) (81)
Share-based payment 34 137
Decrease/(increase) in trade and other receivables 43 (80)
Increase in inventories (649) (33)
(Decrease)/increase in trade and other payables 4,449 2,522
Net cash (used in)/generated from operating activities 5,489 4,164
Cash flows from investing activities
Interest received 372 161
Purchase of intangible and tangible fixed assets (232) (90)
Net cash used in investing activities 140 71
Cash flows from financing activities
Payment of lease liabilities (270) (257)
Payment of lease interest (68) (80)
Net cash used in financing activities (338) (337)
Net (decrease)/increase in cash and cash equivalents 5,291 3,898
Cash and cash equivalents at beginning of period 18,370 13,514
Cash and cash equivalents at end of period 23,661 17,412
5,291 3,898
Notes to the interim financial information
1. General Information
The principal activity of the Group is import and distribution of wine.
The Company was incorporated on 1 February 2021 in the United Kingdom and is a
public company limited by shares registered in England and Wales. The
registered office is 37-41 Roman Way Industrial Estate, Longridge Road,
Ribbleton, Preston, Lancashire, United Kingdom, PR2 5BD. The registered
company number is 13169238.
2. Significant accounting policies
Basis of preparation
The consolidated interim financial information of the Virgin Wines UK Plc
group have been prepared in accordance with the principal accounting policies
used in the Group's consolidated financial statements for the year ended 28
June 2024. These interim financial statements should be read in conjunction
with those consolidated financial statements, which have been prepared in
accordance with the international accounting standards in conformity with the
requirements of the Companies Act 2006.
These interim financial statements do not fully comply with IAS 34 'Interim
Financial Reporting', as is currently permissible under the rules of AIM.
Historical cost convention
The interim financial information has been prepared on a historical cost basis
except for certain financial assets and liabilities (including derivative
instruments), measured at fair value through the income statement.
Going concern
The Group's business activities, together with the factors likely to affect
its future development, performance and position are set out in the Chief
Executives Statement, which also describes the financial position of the
Group.
During the period the Group met its day to day working capital requirements
through cash generated from operating activities. The Group's forecasts and
projections, taking account of reasonably possible changes in trading
performance, show that the Group should be able to operate using cash
generated from operations, and that no additional borrowing facilities will be
required. Having assessed the principal risks, the directors considered it
appropriate to adopt the going concern basis of accounting in preparing its
consolidated financial statements.
Goodwill
Goodwill is not amortised but is reviewed annually for impairment. The
recoverable amount of the Group's single cash-generating unit (CGU) is
determined by calculating its value in use. The value in use calculation
requires the
Group to estimate the future cash flows expected to arise from the single CGU
and to use a suitable discount rate in order to calculate the present value.
The value in use is then compared to the total of the relevant assets and
liabilities of the CGU.
3. Operating profit
Operating profit is stated after charging/(crediting):
Unaudited Unaudited
27 December 2024 29 December 2023
£'000 £'000
Inventory charged to cost of sales 22,144 21,575
Amortisation of intangible asssets (note 8) 299 272
Depreciation of property, plant and equipment (note 9) 94 120
Depreciation of right of use asset (note 10) 250 250
Net exchange gains (including movements on fair value through profit and loss (32) (22)
derivatives)
Movement in inventory provision (9) (38)
4. Share-based payments
In the period ended 27 December 2024 the Group operated an equity-settled
share-based payment plan as described below.
The charge in the period attributed to the plan was £34k (2023: £137k).
Under the Virgin Wines UK Plc Long-Term Incentive Plan, the Group gives awards
to Directors and senior staff subject to the achievement of a pre-agreed
revenue and net profit figure for the financial year of the Group, three
financial years subsequent to the date of the award. These shares vest after
the delivery of the audited revenue and profit figure for the relevant
financial year has been announced.
Awards are granted under the plan for no consideration and carry no dividend
or voting rights.
Awards are exercisable at the nominal share value of £0.01.
Awards are forfeited if the employee leaves the Group before the awards vest,
except under circumstances where the employee is considered a 'Good Leaver'.
Unaudited Unaudited
27 December 2024 29 December 2023
Number of Shares Number of Shares
Outstanding at start of period 4,189,777 2,811,645
Granted during the period - -
Outstanding at end of period 4,189,777 2,811,645
The Company granted its first share options on 23 June 2021. Further share
options were granted on 6 December 2021, 6 December 2022 and 30 April 2024.
The awards outstanding at 27 December 2024 have a weighted average remaining
contractual life of 8.6 years (2023: 8.7 years).
The fair value at grant date was determined with reference to the share price
at grant date, as there are no market-based performance conditions and the
expected dividend yield is 0%. Therefore there was no separate option pricing
model used to determine the fair value of the awards.
5. Finance income
Unaudited Unaudited
27 December 2024 29 December 2023
£'000 £'000
Bank interest 372 161
6. Finance costs
Unaudited Unaudited
27 December 2024 29 December 2023
£'000 £'000
Interest payable for lease liabilities 68 80
7. Earnings per share
Basic and diluted earnings per share are calculated by dividing the earnings
attributable to equity shareholders by the weighted average number of ordinary
shares in issue during the period.
The calculation of basic profit per share is based on the following data:
Statutory EPS
Unaudited Unaudited
27 December 2024 29 December 2023
Earnings (£'000)
Profit after tax 921 801
Earnings for the purpose of basic earnings per share 921 801
Number of shares
Weighted average number of shares for the purposes of basic earnings per share 55,972,405 55,837,560
Weighted average number of shares for the purposes of diluted earnings per 60,162,182 58,649,205
share
Basic earnings per ordinary share (pence) 1.6 1.4
Diluted earnings per ordinary share (pence) 1.5 1.4
8. Intangible assets
Group
Goodwill Software Total
£'000 £'000 £'000
Cost
At 1 July 2023 9,623 3,480 13,103
Additions - 67 67
29 December 2023 unaudited 9,623 3,547 13,170
At 29 June 2024 9,623 3,872 13,495
Additions - 207 207
27 December 2024 unaudited 9,623 4,079 13,702
Accumulated amortisation and impairment
At 1 July 2023 - 1,753 1,753
Amortisation charge - 272 272
29 December 2023 unaudited - 2,025 2,025
At 29 June 2024 - 2,336 2,336
Amortisation charge - 299 299
27 December 2024 unaudited - 2,635 2,635
Net book value
At 27 December 2024 unaudited 9,623 1,444 11,067
At 28 June 2024 audited 9,623 1,536 11,159
At 29 December 2023 unaudited 9,623 1,522 11,145
9. Property, plant and equipment
Leasehold property Computer hardware & warehouse equipment
Fixtures & fittings
Total
£'000 £'000 £'000 £'000
Cost
At 1 July 2023 20 980 538 1,538
Additions - 9 15 24
29 December 2023 unaudited 20 989 553 1,562
At 29 June 2024 20 994 552 1,566
Additions - 25 - 25
27 December 2024 unaudited 20 1,019 552 1,591
Accumulated depreciation
At 1 July 2023 20 750 366 1,136
Charge for the year - 69 51 120
29 December 2023 unaudited 20 819 417 1,256
At 29 June 2024 20 882 462 1,364
Charge for the period - 53 41 94
27 December 2024 unaudited 20 935 503 1,458
Net book value
At 27 December 2024 unaudited - 84 49 133
At 28 June 2024 audited - 112 90 202
At 29 December 2023 unaudited - 170 136 306
Depreciation is charged to operating expenses in the profit and loss account.
10. Right of use assets
Leasehold property Computer hardware & warehouse equipment
Total
£'000 £'000 £'000
Cost
At 1 July 2023 5,060 252 5,312
29 December 2023 unaudited 5,060 252 5,312
At 29 June 2024 5,060 252 5,312
27 December 2024 unaudited 5,060 252 5,312
Accumulated depreciation
At 1 July 2023 2,357 85 2,442
Charge for the period 225 25 250
29 December 2023 unaudited 2,582 110 2,692
At 29 June 2024 2,807 135 2,942
Charge for the period 225 25 250
27 December 2024 unaudited 3,032 160 3,192
Net book value
At 27 December 2024 unaudited 2,028 92 2,120
At 28 June 2024 audited 2,253 117 2,370
At 29 December 2023 unaudited 2,478 142 2,620
11. Trade and other receivables
Unaudited Unaudited
27 December 2024 29 December 2023 28 June 2024
£'000 £'000 £'000
Amounts falling due within one year:
Trade receivables 1,984 1,591 1,034
Prepayments 672 966 1,523
Other receivables - 132 127
2,656 2,689 2,684
12. Trade and other payables
Unaudited Unaudited
27 December 2024 29 December 2023 28 June 2024
£'000 £'000 £'000
Trade payables 5,975 4,648 2,398
Taxation and social security 4,275 3,119 1,675
Contract liabilities 6,908 6,548 8,703
Accruals and other creditors 1,909 2,403 1,649
19,067 16,718 14,425
13. Share capital
Unaudited Unaudited
27 December 2024 29 December 2023 28 June 2024
£'000 £'000 £'000
Authorised, Allotted, called up and fully paid
55,972,405 (2023: 55,837,560) ordinary shares of £0.01 each 560 558 560
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