Alcohol group Conviviality’s increased its dividend by 14 per cent after a spending spree boosted its revenue.
Its share price leapt more than six per cent to 190p on Monday morning following the report.
Turnover at the company was £864.5m, up 137 per cent year-on-year, from £364.1m.
Matthew Clark, acquired for £200m in March 2015, contributed £497m of the turnover, while Conviviality’s retail revenue was £366.9m, up 0.8 per cent.
Conviviality’s pre-tax profit, meanwhile, was up 124 per cent to £21.7m.
Adjusted earnings before interest, taxation, depreciation and amortisation (Ebitda) were £30.2m for the year, up 135 per cent.
Conviviality increased its dividend by 14 per cent to 9.5p.
Why it’s interesting
Conviviality was boosted by the acquisitions of Matthew Clark, Peppermint and Bibendum during the year.
The company behind Bargain Booze and Wine Rack acquired Matthew Clark in March last year for £200m.
It completed the purchase of Bibendum for £60m in May this year.
Conviviality, which today noted we are in “uncertain economic times”, is one of many companies whose shares were hit after the result of the EU referendum emerged.
Its share price dropped from 208p on 23 June and closed last week at 178p.
What the company said
Chief executive Diana Hunter:
We look to the year ahead with a stronger and more resilient business able to thrive in uncertain economic times. It is our intention to continue to deliver against our integration plan during the year, ensuring the benefits are realised from our transformational acquisitions. The performance of the businesses is encouraging, with the team's relentless focus on serving their customers well and supporting franchisees in the retail business evidenced by the consistent delivery of results. We continue to review the market within which we trade ensuring that we strengthen our position as the UK's leading drinks and impulse wholesaler and distributor.