Conviviality slumps again as it confirms guidance range for full-year earnings

AIM-listed alcohol wholesaler and distributor Conviviality was under pressure again as it confirmed that adjusted earnings for the current year will come in between £55.3m and £56.4m, 20% below market expectations.

The company had already said last week that it expected earnings before interest, tax, depreciation and amortisation to be 20% lower than market views, but had not given a range. It said at the time that the change in expectations reflected a "material error" in the financial forecasts of the Conviviality Direct business and it confirmed on Tuesday that this was in fact an arithmetic error in the compilation of the forecast.

Conviviality said the guidance reflects trading for the current financial year to the date of the announcement, combined with the current expectation for the likely trading performance of the business for the remainder of the current financial year.

"This includes the impact of the error in the financial forecasts of the Conviviality Direct business and the assumption that the margin weakness seen in January and February continues for the remainder of the current financial year," it said.

At 1550 GMT, the shares were down 12% to 101.40p.