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(Alliance News) - Shares in Naked Wines PLC dived early Thursday after it reported a swing to annual profit, but its cash balance halved and it expects little sales progress in the year ahead.
Naked Wines shares were 31% lower at 199.30 pence each in London.
In its financial year that ended March 28, the Norwich-based online wine retailer posted a pretax profit of GBP2.9 million, versus a loss of GBP10.7 million in financial 2021.
Revenue increased by 3.0% to GBP350.3 million from GBP340.2 million.
Costs were similar to the year before. Advertising costs fell to GBP34.1 million from GBP42.3 million, but fulfilment costs increased to GBP62.6 million from GBP58.3 million.
However, Naked Wine's cash balance dropped to GBP40 million from GBP85 million a year ago.
For its current financial year 2023, Naked Wines expects group sales in the range of GBP345 million to GBP375 million, down 4% in the worst and up 4% in the best scenario on financial year 2022.
"We expect year-on-year sales growth to accelerate throughout the year," it added. Despite this, Naked Wines expects its adjusted earnings before interest, tax, depreciation and amortisation to be break even, down from a profit of GBP2 million in financial year 2022.
The retailer declared no annual dividend, unchanged from a year ago.
By Tom Budszus; tombudszus@alliancenews.com
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