Conviviality Retail reports profit growth despite fewer stores

Conviviality Retail, the owner of franchised off-licence convenience stores, reported a solid increase in profits despite a dip in revenue in its maiden first-half results as an AIM-listed company.Meanwhile, an update on trading showed that sales over Christmas were strong, with like-for-like (LFL) sales and average sales per store picking up.The firm, which owns brands such as Bargain Booze and Wine Rack, said that profit before tax excluding exceptional items rose to £2.2m in the 26 weeks to October 27th 2013, up 13.6% year-on-year.Retail sales, classed as sales by franchisees to customers, were down 5.2% at £261.9m during the period due to a "managed reduction" in store numbers to 592, from 616 at the start of the period.Nevertheless, the company reported a 1.5% increase in LFL franchisee retail sales, while average retail sales per store were up 4.9%.Wholesales sales, which are sales by Conviviality to its franchisees, were down 5.1% at £183.7m during the first half.The company, which joined the stock market in July 2013, declared an interim dividend of 2p per share.During the two weeks to January 5th, Conviviality said that LFL retail sales growth accelerated to 2.8%, with average sales per share rising 5.7% year-on-year. This was helped by strong sales growth in sparking wine and champagne sales, seasonal confectionery and beer.BC