LONDON (Alliance News) - Drinks wholesaler Conviviality PLC on Monday reported marginal growth in profit in its recently-ended financial year, as revenue more than doubled, bolstered by Conviviality's acquisition of fellow drinks wholesaler Matthew Clark last year.
Conviviality said its pretax profit in the year ended May 1 rose to GBP9.1 million from GBP9.0 million the year before, as revenue more than doubled to GBP864.5 million from GBP364.1 million.
Revenue was boosted by the acquisition of Matthew Clark in October last year, but this did also contribute to an increase in operating expenses to GBP87.6 million from GBP28.0 million, which held back profit.
Conviviality said its businesses continue to trade in line with expectations, with Matthew Clark trading at 4.8% above last year since the year end, while drinks wholesaler Bibendum, which Conviviality bought in late May, has brought in 110 new customers since acquisition.
It did say, however, that there was some softening in Conviviality Retail in June, leading to like-for-like sales to July 3 declining by 2.1% year-on-year in that area of the business.
Conviviality will pay a total dividend of 9.5 pence for the year, which is up 14% on the prior year's 8.3p.
"The experienced management team in place, coupled with the well invested and compelling businesses with market leading expertise and current trading in line with expectations, gives the board confidence for the future," Chief Executive Diana Hunter said in a statement.
"We look to the year ahead with a stronger and more resilient business able to thrive in uncertain economic times," she added.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.