Conviviality Retail serves final results as aperitif for Matthew Clark deal

13th Jul 2015 10:44

(ShareCast News) - Conviviality Retail, owner of the Bargain Booze chain of off-licence shops, posted final results showing small rises in revenue and profits, though the company's shares remain suspended as it attempts to engineer a reverse takeover of the larger Matthew Clark wine wholesaling business.Conviviality, which also owns the Thorougoods and Wine Rack retail brands, saw profits pop 4.4% higher to £9.7m as revenue bubbled up 2.4% to £364.1m.Gross margin improved to 10.2% from 9.2% primarily due to an increase in the number of company owned stores where Conviviality retains both the wholesale and retail margins.Investors will toast a 5% increase in the final dividend to 6.3p per share, bringing the year's total to 8.3p."This is a strong set of results reflecting the hard work of our employees, franchisees and suppliers," said chief executive Diana Hunter.Last week, ex-Waitrose director Hunter announced that the AIM-listed company was participating in a managed sale process of Matthew Clark, a drink wholesaler valued which is 50%-owned by Punch Taverns and valued at around £200m to Conviviality's £104m.No mention of the deal was made in the results, though Hunter said that "during the year ahead we plan to further leverage our wholesale capability into new markets".Broker WH Ireland said the results were in line with its expectations and progress in investing in the infrastructure, store base and personnel was praised as "providing very solid foundations for growth across the franchise estate"."With the shares currently suspended due to the fact that the deal would constitute a reverse takeover, we await further news on the sale process. However, this would clearly be a game-changing deal for Conviviality if successful."