Naked Wines FY earnings seen at higher end of previous guidance

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