We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Naked Wines Plc | LSE:WINE | London | Ordinary Share | GB00B021F836 | ORD 7.5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-1.25 | -2.28% | 53.50 | 52.50 | 53.40 | 56.00 | 53.40 | 55.90 | 126,514 | 16:35:25 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Wine,brandy & Brandy Spirits | 354.05M | -17.41M | -0.2353 | -2.27 | 39.52M |
TIDMWINE
RNS Number : 0969L
Majestic Wine PLC
17 April 2018
For immediate Release 17 April 2018
Majestic Wine PLC
("Majestic" or "the Group")
Acceleration of growth plans
Majestic is pleased to announce that it intends to accelerate growth, by materially increasing investment in new customer acquisition.
Key points:
-- FY18 Update - trading in line with market expectations: -- Sales on track to hit GBP500m sales target in 2019 -- FY18 adjusted EBIT expected to be in line with market expectations*
-- Balance sheet and cash flow remain strong, with FY18 net debt expected to be reported at c.0.4x EBITDA, below our target of 0.5x EBITDA
-- Dividend expected to be in line with market expectations for FY18* -- New information shows investment opportunity materially bigger than previously thought:
-- The Group is currently investing around GBP12m a year in new customer acquisition at a lifetime payback in excess of 4x, generating GBP48m per year of future value
-- Naked Wines Mature Angel sales retention, of 85%, is higher than the customer retention rate previously reported
-- The opportunity to invest in new customer acquisition is materially bigger than previously thought and the Board believes there is potential over time to double from the current level
-- Returns are trending higher as we continue to optimise our investment approach -- Early indications show the same returns are achievable in Majestic Retail as in Naked Wines -- As a result the group intends to increase investment in new customer acquisition in FY19:
-- We will invest an additional GBP9m to GBP12m, of which GBP7m to GBP10m is directed at growth and GBP2m will ensure we drive growth safely
-- This will reduce adjusted EBIT in FY19 by GBP2m to GBP3m (vs FY18), but increase annual generation of future value from GBP48m to GBP80m+ a year
-- The FY19 dividend is expected to be in line with current market expectations*
-- Additional financial data will be provided going forwards to facilitate assessment of both trading and investment performance
-- The Board expects to see significant benefits from this investment from FY21 and beyond
Rowan Gormley, CEO commented:
"We are in the fortunate position of having the option to accelerate growth by investing in new customer acquisition.
We are starting from a good place with the core business on track to meet our 2019 sales target of GBP500m and the market's expectation for profits and dividend in FY18.
In the last 3 years, we have doubled sales at Naked Wines and delivered profitability in all 3 markets - after increasing investment in new customer acquisition.
We believe we can double the level of investment again while maintaining the returns, driving sustained growth in shareholder value.
On a risk / return basis, the case for accelerating investment is clear. We can measure success in months while delivering returns over years.
This is the right thing to do to maximise shareholder value."
Notice of Capital Markets Days
Majestic Wine plc will host a Capital Markets Day for analysts and investors in London this afternoon to present the Group's future investment strategy and growth ambitions.
For US investors, Majestic will host a follow up Capital Markets Day on 1 May 2018 at the Naked Wines USA office in Napa, California.
For details on timing, venue and to register your interest in attending either event please contact Gabby Clinkard on the details below. A copy of the materials to be presented today and a CEO letter is now available on the company's website: www.majesticwineplc.co.uk, a webcast of the presentation will be made available later today.
Appendix: Guidance Information
1. Naked Wines historic performance (GBPm, unaudited, restated to constant FX rates) New customers Repeat customers Fixed costs (as reported) Sales Contribution Sales Contribution ------ ------------- ------ ------------- FY14 21 (8) 38 8 (7) ------ ------------- ------ ------------- --------------- FY15 28 (8) 57 14 (9) ------ ------------- ------ ------------- --------------- FY16 29 (10) 79 20 (10) ------ ------------- ------ ------------- --------------- FY17 36 (13) 103 26 (11) ------ ------------- ------ ------------- --------------- 2. Naked Wine forecasting metrics Naked FY18 Naked FY19 New customer investment GBP12-12.5m GBP16-20m ----------------- ------------------- Repeat sales retention c.85% c.85% ----------------- ------------------- New to repeat sales c.105% c.100% conversion ----------------- ------------------- New customer margin -200 to -300bps -600 to -900bpsYoY YoY ----------------- ------------------- Repeat contribution +70-100bpsYOY Unchanged margin ----------------- ------------------- Fixed cost growth Flat +10-15% ----------------- -------------------
*Current analyst consensus estimates can be found below and on www.majesticwineplc.co.uk :
FY 2018 FY 2019 Revenue GBP484.3m GBP518.0m ---------- ---------- Adjusted EBIT GBP17.9m GBP20.8m ---------- ---------- Adjusted Profit GBP16.8m GBP19.9m Before Tax ---------- ---------- Adjusted, Diluted 17.8 pence 21.1 pence EPS ---------- ---------- Dividend per share 5.6 pence 6.8 pence ---------- ----------
For further information, please contact:
Majestic Wine PLC Tel: 01923 298 200 Rowan Gormley, Chief Executive Officer James Crawford, Chief Financial Tel: 07891 206239 Officer gabby.clinkard@majestic.co.uk Gabriella Clinkard, Public & Investor Relations Investec (NOMAD & Joint Broker) Tel: 0207 597 5970 Garry Levin / David Flin / David Anderson / Carlton Nelson Liberum (Joint Broker) Tel: 020 3100 2222 Peter Tracey / Richard Bootle Instinctif Partners (PR Agency) Tel: 0207 457 2020 or 07931 Damian Reece / George Yeomans 598 593
About Majestic Wine PLC:
Majestic Wine plc is a quality wine specialist, with over 1m customers in the UK, USA and Australia.
Our goal is to try to beat the market by investing in customer relationships, rather than stores. We do that through:
-- Investing in models that compound, i.e. models that get stronger with growth.
-- Investing with discipline, because we are able to test new opportunities before we roll them out.
-- Using data and technology to continuously improve - every quarter we double up on our best performing investments, and cancel the worst performers.
Our divisions:
1) Majestic Retail - The UK's largest specialist wine retailer. We help people find wines they will love by employing highly engaged, well trained people equipped with state of the art tools and unique wines.
2) Naked Wines - Naked's customers in the UK, USA and Australia crowdfund independent winemakers in exchange for preferential prices on exclusive wines.
3) Majestic Commercial - A specialist on-trade supplier. We help our customers make more money from their wine list by offering national pricing and scale but local delivery and training.
4) Lay and Wheeler - A specialist fine wine merchant. We are a trusted guide for people who love fine wine, supplying the world's finest wines with a personal service.
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDVQLFFVZFEBBX
(END) Dow Jones Newswires
April 17, 2018 02:00 ET (06:00 GMT)
1 Year Naked Wines Chart |
1 Month Naked Wines Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions