Huge revenue gains for Conviviality in transformational year after Bibendum buyout

 
Alys Key
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Wine, food and hospitality services are a winning combination for the company (Source: Conviviality)

Drinks wholesaler and distributor Conviviality popped the cork on over £1bn in revenues and doubled profits today.

The parent of Matthew Clark, Wine Rack, and royally-accredited Walker and Wodehouse revealed a stellar year as acquisitions and integration bolstered the business.

The figures

Conviviality more than doubled pre-tax profit for the year to 30 April 2017 from £21.7m to £45.8m.

Revenues broke the £1bn barrier, coming in at £1.6bn. This marked an increase of 85 per cent on last year's total of £841m.

Shares were trading up 3.77 per cent at time of writing.

Why it's interesting

It has been a transformational period for the business, which acquired drinks supplier Bibendum at the beginning of this financial year.

The acquisition was just one part of Conviviality's expansion and restructuring this year, as integration delivered £6m in synergies.

Business operations now include everything from a retail franchise network to outdoor events and festivals, and even the launch of own label products such as Whipstitch cider through wholesale brand Matthew Clark.

What the company said

Chief executive Diana Hunter said:

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.