Conviviality sees annual EBITDA ahead of market views

Conviviality sees its full-year EBITDA coming in marginally ahead of market expectations as the company confirmed sales up 137% to about £864m in the 53 weeks to 1 May.

Wholesale sales were in line with the prior year and like-for-like retail (LFL) sales generated by its franchise stores rose to -1.3%, from -1.7%. Wine Rack continued to trade well with LFL sales up 3.2%.

Shares in the independent alcohol wholesaler, which acquired Matthew Clark in October last year, were up more than 5% following its trading update. It expected to end the year with net debt of about £87m.

"Matthew Clark has traded strongly since acquisition with sales up 4.9% on the corresponding prior period," said Conviviality in a statement. "The number of outlets supplied has increased 2.9% since acquisition with the number of customers also 2.9% higher."

The company's directors believed the recently-approved acquisition of Bibendum PLB Group would provide further opportunities and benefits, and a detailed integration plan was in place.

"We look forward to a strong set of results," said chief executive Diana Hunter