5th Aug 2025 13:24
(Alliance News) - Naked Wines PLC on Tuesday said it expects another top-line to decline in its new financial year, as it reported a narrower annual loss but a revenue fall.
The Norwich, England-based online wine seller said revenue fell 14% to GBP250.2 million in the twelve months to the end of March from GBP290.4 million a year earlier. The pretax loss narrowed to GBP4.9 million from GBP16.3 million.
The firm did not face an impairment of non-current assets in financial 2025, compared to a GBP9.9 million hit a year ago.
Naked Wines said revenue was in line with market expectations for the year.
It said it made "significant progress" in reducing excess inventory, as total inventory fell 26% to GBP108 million from GBP145 million.
Naked Wines proposed a share buyback of GBP2 million to start "shortly after the results are announced".
It is now targeting ongoing distributions of the lesser of 40% of cash creation or adjusted earnings before interest, tax, depreciation and amortisation excluding inventory liquidation and associated costs.
The firm said it envisages "more significant" ad hoc distributions as it delivers on cash generation and sustained profitability.
"Over the course of [financial 2025], we have taken big steps to stabilise the business, to rebuild the team, and ground our strategy in real data and insights. We've announced a clear disciplined plan to reach in excess of GBP70m cash," said Chief Executive Officer Rodrigo Maza.
It said net cash excluding lease liabilities was up 54% to GBP30.1 million from GBP19.6 million.
"We are already executing with more focus, more discipline, and more conviction than ever. And while there's still work to do, I genuinely believe we have built the platform to take Naked to the next stage of growth; [financial 2026] will be an exciting year," Maza added.
Looking ahead, Naked Wines said it expects revenue to fall to between GBP200 million and GBP216 million in financial 2026. This would represent a decline of between 14% and 20% from GBP250.2 million.
The company guided for adjusted Ebitda, excluding inventory liquidation and associated costs, between GBP5.5 million and GBP7.5 million. This fell 23% to GBP6.7 million in financial 2025 from GBP8.7 million a year ago.
It expects net cash to increase further to between GBP35 million and GBP39 million.
Naked Wines said trading to date in financial 2026 is in line with guidance.
It said cost savings for the year, which amount to GBP15 million of the total GBP23 million annualised medium-term target, have already been actioned in the first quarter and are taking effect from the middle of the quarter.
Shares in Naked Wines were down 0.4% at 77.68 pence in London on Tuesday afternoon.
By Michael Hennessey, Alliance News reporter
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