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Profit more than doubles at Conviviality

Published:  17 July, 2017

The Conviviality steam train shows no sings of stopping if its FY17 results are anything to go by.

In its annual financial results released today, the UK’s biggest independent alcohol wholesaler reported strong top-line growth, with both revenues and profit reflecting another year of consolidation and expansion.

Annual profits for the 52 weeks to April 30, 2017, rose by 147% to £22.5m, while sales climbed 85% to £1.56bn – helped significantly by the acquisition of Bibendum PLB in May 2016.

This morning, the group called FY17 “a transformational year with the integration of the recent acquisitions ahead of plan, resulting in a doubling of profit and delivery of £6m of synergies”.

The distribution giant began to swell significantly in October 2015 when it acquired on-trade specialists Matthew Clark.

Bibendum PLB’s addition last year continued the group’s aggressive expansion plan which began with the company’s floatation in 2013, when turnover was at £372m.

A “full re-structuring of the business,” followed, according to chairman David Adams in today’s statement.

The past year also saw a re-structure into three business units: Conviviality Retail, which includes fascias Wine Rack and Bargain Booze; on-trade supplier Conviviality Direct; and Conviviality Trading which offers  brand building, activation and events.

The group’s retail division, headed by the newly joined former Argos director David Robinson, performed particularly well, generating sales of £378m, up 6.1% on the previous year.

Conviviality CEO executive Diana Hunter said tdoay: “The balance we have created across the enlarged group, and resilience this creates, gives us confidence in the future success of the business.

“Importantly the culture that we have created at Conviviality, with its entrepreneurial and innovative focus, remains true across the group and we firmly believe there is exciting potential for significant organic growth for our businesses, with further potential opportunities to build on the current platform.”