RE: Interim Results...19 Jan 2015 11:06
Also...
Improved Franchisee Performance
· Franchisee loyalty increased with average wholesale sales per store up 1.1%
· Like for Like Franchisee retail sales2 down 1.7% (as previously announced in November)
· Franchisee profits improved 6.4%
· Franchisee financial stability much stronger
Non-Financial
· Store numbers increased to 599 (FYE 2014: 595)
· Bargain Booze brand re-fresh continues with over 50% of stores benefiting from a new fascia
· Rhythm and Booze stores converted and successfully integrated
· Plans for expansion into Scotland through the Scotmid trial progressing well
· Wine Rack expanding into the North and products popular with Franchisees
· "As if it wasn't cheap enough" APP launched and over 2,000 customers are already subscribing
· Logistics capability transformed enabling more efficient distribution
Christmas Trading Highlights and Outlook
· Strong Christmas trade in the two weeks to 4th January 2015 with growth 2.6% above last year
· Like for like Franchisee retail sales2 up by 1.2%, average store sales up 2.8% year on year
· Trading in line with expectations
Commenting on the results, Diana Hunter, Chief Executive Officer of Conviviality, said:
"I am pleased with our first half year results which are in line with our expectations in a highly competitive market. Despite closures of underperforming stores in the period and the integration of the Rhythm and Booze units, sales have been maintained and store numbers have started to grow as we open higher quality outlets. This has led to increased profits for both the Company and its Franchisees. We now have a solid platform from which to accelerate Franchisee growth, our pilot with Scotmid demonstrates the potential for Bargain Booze to expand throughout the UK, and with our strong balance sheet we have the ability to exploit growth opportunities as they arise. I am confident in the progress we have made and I would like to thank our Franchisees, Employees and Suppliers for their commitment and the important part they all play in achieving these results."
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