Naked Wines FY earnings seen at higher end of previous guidance

Online wine retailer Naked Wines said on Tuesday that full-year earnings would likely be at the higher end of previous guidance as it continues to make efforts to become "leaner and stronger".

Naked Wines said revenues were seen at roughly £290.0m, down 13% year-on-year but up from the 18% decline seen at the time of its interim results. Underlying earnings, on the other hand, were anticipated to be around £5.0m, compared to previous guidance of £2.0m to £6.0m.

The AIM-listed noted that its statutory operating loss for the year ended 1 April was predicted to be between £13.0m and £18.0m, mainly as a result of impairments and restructuring charges.

Naked Wines also highlighted an improvement in its net cash position to £20.0m, ahead of guidance which had called for somewhere between £5.0m and £15.0m, and said it had made "notable progress" in reducing general and administrative spending by 11%.

"With higher levels of cash, a moderating decline in sales and demonstrable underlying profitability we have a strengthening platform from which to build as we continue to drive towards profitable growth," said chief executive Rodrigo Maza.

As of 1330 BST, Naked Wines shares had surged 11.54% to 58.0p.

Reporting by Iain Gilbert at Sharecast.com