Bibendum's profits surge 11%

Published: 19 August, 2010

UK wine distributor Bibendum is "cautiously optimistic" after announcing gross profits have risen 11% on last year to £20.8 million, following strong cost controls.

The group's turnover increased by 5% to £144.5 million, while the gross profit grew by £2 million from £18.8 million. Profit after tax was £1.27 million.

A statement read: "This substantial increase in profitability was achieved through strong cost control and efficiency gains in every area of the business."

The business has also renegotiated banking facilities and benefited from a lower interest charge of £0.3m. It reduced net debt by 20% to £10.3 million.

A valuation of the group's freehold property portfolio has shown an increase in the open market value of the property by £200,000 to £2.9 million.

James Kowszun, Bibendum's head of finance, descibed the results as "encouraging" adding that the group was "cautiously optimistic about what's coming up".

"We're a long way from being bullish and bubbly, but we're optimistic about the future if we continue to work hard and be professional."

He said that the strong results were difficult to attribute to either on or off-trades, instead being "much more customer specific".

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