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(Alliance News) - Virgin Wines UK PLC on Tuesday said it plans to list on London's junior AIM market in March.
The online-only wine retailer, akin to AIM-listed Naked Wines PLC, said admission is expected to take place on March 2.
The company, which like Naked Wines is based in Norwich, offers pay-as-you-go services but also provides customers with the WineBank and Wine Plan subscriptions programmes. Recently, Virgin Wines has expanded into craft beer and premium spirits. Virgin Wines is operating in an addressable market worth around GBP2.4 billion annually, it said.
In the financial year that ended June 30, 2020, the company generated revenue of GBP56.6 million and adjusted earnings before interest, tax, depreciation and amortisation of GBP4.8 million.
More recently, adjusted Ebitda in the six months ended December 31 more than doubled to GBP4.5 million, on revenue which climbed 55% to GBP40.6 million.
In the year to February 29, 2020, so before Covid-19 gripped the UK, 99% of its orders received before 4pm were dispatched on the same day.
"The off-trade market for wine specialists is anticipated to be buoyed by consumer trends that include an increasing shift toward premiumisation in the alcoholic beverage market, consumers increasingly purchasing alcohol online, and increasing consumer spend on 'Food & Drink' based subscriptions," Virgin Wines said.
At the end of 2020, the company had 169,000 active customers, with 147,000 of those using its subscription services.
Once part of the Virgin Group, the company left the Richard Branson-founded marquee in 2005, after being purchased by Direct Wines. The IPO follows a GBP15.9 million management buyout in 2013 backed by Mobeus Equity Partners and Connection Capital.
Virgin Wines is chaired by John Risman, who also is CEO of window furnishing firm Hillarys.
Its board includes Non-Executive Director Ed Wass, who is portfolio director at Mobeus, and Helen Jones, a former executive director of Caffe Nero Group Ltd and managing director of Zizzi restaurants. Jones currently is non-executive director of automobile and cycling shop chain Halfords Group PLC, pub chain Fuller, Smith & Turner PLC, and Mr Kipling cake brand owner Premier Foods PLC.
Virgin Wines Chief Executive Officer Jay Wright said: "Virgin Wines is a distinctive, fast-growing direct-to-consumer retail business with a unique wine sourcing model and a loyal customer base. We are delighted to announce our intention to list on AIM signifying an exciting new chapter in the group's long-term development."
Liberum Capital Ltd is acting as nominated advisor and sole broker. In late-January, Sky News reported a Virgin Wines float would value the company at around GBP100 million.
By Eric Cunha; ericcunha@alliancenews.com
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