(Alliance News) - Naked Wines PLC late Tuesday said it is mulling plans to improve profit and keep a lid on costs as it grapples with slower sales progress due to pandemic tailwinds unwinding.
Shares in the company tumbled 32% to 98.58 pence each in London on Wednesday morning.
The Norwich, Norfolk-based firm also said Pratham Ravi, a non-executive director, stepped down effective immediately. Ravi was appointed in August and is an analyst at Punch Card Capital LP, one of online wine retailer's largest shareholders.
Naked Wines said it is "reviewing potential operational and financial plans for the next 18 months".
"The group's focus is on developing plans demonstrating increased profitability, cost restraint and improved payback. Alongside this process we are in active discussions to address our credit facility to reflect any revised plan," Naked Wines explained.
It said it is in compliance with all its financial obligations related to the loan. It expects to have the capacity to meet second-quarter covenant tests.
Back in June, Naked Wines warned that it expects little sales progress in the year ahead.
For the current financial year, which ends in late-March, it expects sales in the range of GBP345 million to GBP375 million, at best a rise of 4% on financial year 2022, but at worst a 4% decline.
Naked Wines was one of the standout performers during Covid. Lockdown measures meant bricks and mortar sites such as bars and clubs were forced to close, meaning consumers turned to online offerings for their fix of wine and spirits.
In July, Naked Wines lost its chief financial officer. Shawn Tabak stepped down, after taking on the role in December 2020. Former James Crawford resumed the role on an interim basis through to June 2023, Naked Wines said in July. Crawford is also managing director.
The company's board got smaller on Tuesday. Non-Executive Ravi stepped down with immediate effect.
Ravi is an analyst at Punch Card, an investment partnership based in Florida. Naked Wines in August said Punch Card is one of its largest shareholders, holding roughly a 10% stake.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
Naked Wine (WINE)