Trading Update
12 June 2026
("Virgin Wines", the "Company" or the "Group")
Trading Update
Agreement of new warehouse facility; resilient trading in challenging markets
Virgin Wines UK plc (AIM: VINO), one of the UK's largest direct-to-consumer online wine retailers, is pleased to provide a trading update in respect of the current financial year ending 3rd July 2026 ('FY26') ahead of reporting audited results in October.
New warehouse
In order to enable the delivery of Virgin Wines' growth strategy, the Company is pleased to announce it has signed a lease for a new warehouse facility in Preston. This will also provide meaningful synergies, economies of scale and structural operational benefits from FY28 onwards, while removing transport costs between the current Preston and Bolton facilities. The warehouse build and fit-out will be completed during FY27, with associated exceptional operating costs expected to be ~£0.7m and increased capex investment of ~£1.6m. As a consequence, the Company will exit its current Bolton site by the end of February 2027 meaning all fulfilment will be based in Preston.
Continued progress against growth strategy
Against a challenging consumer market, the Company continues to deliver good progress against the four pillars of its medium-term growth strategy. The business also continues to win significant market share and expects to achieve ~4% revenue growth during FY26 compared to an online drinks sector which has experienced a decline year-on-year.
In keeping with its growth strategy, the Company continues to invest in customer acquisition and expects to deliver over 40% growth in customers acquired year-on-year across the Group for FY26 as a whole. Substantial new Commercial partnerships have been secured, as well as a new supply channel into UK sports stadiums promising to ensure significant growth over the coming year, while the key partnerships with Moonpig and Ocado continue to deliver double digit revenue growth. The new mobile app was launched on time and on budget, achieving approximately 13,000 downloads in the first two months during April and May. Our value proposition, Warehouse Wines, is expected to deliver FY26 revenue up 90% year-on-year. This encouraging progress provides confidence in the strategy and underpins the Company's ability to deliver its medium-term targets.
Outlook
The current macro environment, exacerbated further in recent months by the effects of the war in the Middle East, continues to exert pressure on consumer confidence and discretionary spend. Whilst the business has worked hard to mitigate the material increases in costs, particularly with regards to increased duty and EPR, it has proved difficult to eliminate these completely when partnered with a worsening consumer environment.
Following the continued execution of the growth strategy this year, the business has seen positive sales trends each quarter with Q1 -4.5%, Q2 +5%, and Q3 +8%. The Company now expects FY26 revenue of c.£61m, FY26 EBITDA1 of -£200k and FY26 PBT1 of -£1.5m2.
The Company remains debt free and the balance sheet remains strong, with the investment in the new warehouse facility being funded through existing cash reserves. WineBank cash balances remain ringfenced and are not being used to fund our capex requirements.
The Board remains confident in the strategy, and will continue to invest in customer acquisition, Warehouse Wines, the Commercial channel and technology, whilst also investing in the new operational infrastructure that can deliver efficient and productive growth. The continuation of this strategy will deliver increased revenue growth and a rebound in underlying profitability.
Jay Wright, Chief Executive Officer of Virgin Wines, commented:
"We are pleased to have agreed a lease for a new warehouse in Preston, streamlining our operations and providing significant synergies and economies of scale, all funded from our strong cash position. Our execution against the key pillars of our growth strategy is delivering encouraging progress, despite that growth now being slightly slower than our original plan due to external market pressures. We are evidencing that the strategy is working, and we remain focused on taking further market share and continuing to invest in our growth channels.
We have an exceptionally loyal customer base who appreciate the outstanding quality and value of our exclusive wine portfolio and the exceptional levels of customer service we consistently deliver. We look forward to pressing ahead with our growth strategy and delivering on our medium-term goals."
1 EBITDA and PBT are stated before share based payments
2 Current market expectations for FY26 were revenue of £63.25m, EBITDA at £100k and PBT of -£1m.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
- Ends -
Enquiries:
Virgin Wines UK plc
Jay Wright, CEO
Amanda Cherry, CFO
Cavendish
(Nominated Adviser and Sole Broker)
Matt Goode, Seamus Fricker, Elysia Bough (Corporate Finance)
Matt Lewis (Corporate Broking)
Hudson Sandler
(Public Relations)
Dan de Belder
Harry Griffiths
Jackson Redley
Via Hudson Sandler
Tel: +44 20 7220 0500
Tel: +44 20 7796 4133
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 former 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 of over 140k, the majority of whom are on one of the Group's subscription schemes.
The Company drives the majority of its revenue through its WineBank proposition, using a variety of marketing channels, as well as through its 30 strong Wine Advisor team, Discovery Club subscription programme and Pay As You Go service.
The Company also has a fast-growing Commercial division, as well as having recently launched Warehouse Wines, its DTC value proposition in 2024.
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, as well as being voted by UK consumers as Online Retailer of the Year for 2025 at the People's Choice Awards. In addition, in 2023 the Group's Buying Director, Sophie Lord, was named Buyer of the Year by Decanter magazine.
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