Conviviality's revenues rise as it performs in line with expectations

Food and drink wholesaler Conviviality revenues increased as it said it is performing in line with market expectations for the year.

In an update for the 26 weeks to 30 October, total revenues were 211% ahead of last year to £783m, which includes revenues from the acquisitions of Matthew Clark, a drinks wholesaler, in October 2015, Peppermint, an events company, in December 2015 and wholesaler rival Bibendum PLB Group in May.

The AIM-listed company said it is making progress with the integration of Matthew Clark and Bibendum ahead of plan, with synergies on track.

For the Conviviality Direct business unit, which serves 23,000 outlets in hotels, pubs and restaurants, sales were up 5.2% generating sales of £515m.

Conviviality Retail, a franchised off-licence and convenience chain, had a 2% rise in sales to £189m and like-for-like sales up 1.7% compared to last summer. LFL store revenue up 1.1%.

In October Conviviality retail announced a two year supply agreement with Palmer & Harvey, a cash and carry, to provide lower volume beers wines and spirits.

Conviviality Trading, a wine agency, sales increased 5.1% to £79m due to strong growth in Peppermint, the company's festivals and events business which was bought in December 2015.

Chief executive Diana Hunter said: "I am pleased that the group has delivered this strong performance across all divisions during such a transformational period. This further demonstrates the teamwork and dedication of all of our people in maintaining excellent levels of service to their customers.

“The organic growth in each business unit demonstrates that existing and new customers are increasingly recognising Conviviality as the leading solution provider and distributor to the UK drinks market."

Shares in Conviviality were up 4.39% to 214p at 1127 GMT.