Virgin Wines UK PLC (AIM:VINO), the AIM-listed online wine merchant, fell more than 12% on Wednesday following its annual audited results for the 2023 financial year.
Group revenues fell 15% to £59 million, though this was above pre-Covid levels revenues of £42.3 million in 2019.
Underlying earnings, however, tanked over 70% to £1.8 million, while profit before tax came to just £600,000.
Gross margins took a hit due to inflationary pressures.
Chief executive Jay Wright commented that the year had been affected by a number of challenges, from well-documented macroeconomic headwinds to a number of one-off, exceptional issues, including the implementation of Virgin Wines’ new warehouse management system.
“Despite this, we have continued to grow our WineBank membership, maintain excellent discipline in our customer acquisition channel and deliver a healthy balance sheet, remaining debt free with £5.5m cash reserves and much reduced levels of stock,” said Wright.
Shares were swapping for 35.89p at the time of writing, less than half their price at the start of the year.