16th Sep 2022 09:27
(Alliance News) - Naked Wines PLC on Friday named founder, former chief executive and shareholder Rowan Gormley as an advisor, just days after it announced it will undertake a strategy review.
The position of board advisor is unpaid, it said, and is expected to last for two to three months. Gormley owns a 2.9% stake in the online wine retailer.
"We wanted shareholder involvement in our ongoing operational and financial planning process. I welcome Rowan providing his insight to us because his operational familiarity with the business and his viewpoint as a shareholder will provide a unique and valuable perspective to the board as we position Naked for long-term sustainable growth," said Chair Darryl Rawlings.
Gormley founded online wine retailer Naked Wines in 2008. Naked was acquired by then London-listed Majestic Wines in a GBP70 million deal in 2015. Gormley was made CEO of the enlarged firm.
Then in 2019, the Majestic part of the business, consisting of its high-street shops, was sold for GBP95 million.
Naked Wines on Tuesday had said it was mulling plans to improve profit and keep a lid on costs as it grapples with slower sales progress due to pandemic tailwinds unwinding.
It said Pratham Ravi, a non-executive director, had stepped down effective immediately. Ravi was appointed only in August and is an analyst at Punch Card Capital LP, one of online wine retailer's largest shareholders, with roughly a 10% stake.
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.
However, it warned back in June that it expects little sales progress in the year ahead.
For the current financial year, which ends in late-March, Naked Wines 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 shares were 1.0% higher at 91.95 pence each in London on Friday morning. They are down 89% over the past 12 months.
By Eric Cunha; [email protected]
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