Trading update

8 March 2018

Conviviality Plc

("Conviviality", the "Company" or the "Group")

Trading update

Conviviality Plc (AIM: CVR), the UK's leading independent wholesaler and distributor of alcohol and impulse, serving customers through its franchised retail outlets and through hospitality and food service, is providing the following update on trading for the 52 week period ending 29 April 2018.

Following a review of current year projections, the Company now expects that adjusted EBITDA for the current year will be approximately 20% below current market expectations. The previous guidance for net debt of approximately £150 million for the period ending 29 April 2018 remains unchanged.

The change in current expectations reflect two main influences:

· A material error in the financial forecasts of the Conviviality Direct business, which means the EBITDA for the current period will be impacted by approximately £5.2 million; and

· Whilst our sales and orders have held up at levels ahead of last year, demonstrating that our one stop shop model is working, margins in Conviviality Direct have softened across January and February. In the revised guidance the Company has assumed a continuation of the margin weakness for the remainder of the current financial year. A number of enhanced controls and disciplines have been introduced to address this and management believes that appropriate corrective actions are in place.

The Company has not seen any material weakness in overall demand and the previously announced cost saving actions remain fully on track.

The company will provide a pre-close update on 27 March 2018.