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Naked Wines shares jump on positive trading update, refinancing talks 'constructive'

Naked Wines PLC (AIM:WINE, OTCQX:NWINF) shares climbed 14% after saying the improved trading it reported at the start of the year has continued.

The wine seller also revealed a much improved net cash position, expected to be around the top end of guidance this year.

Cash stands at around £17 million, up from nearer £3 million at the end of the third quarter and is anticipated to be at the top end of previous guidance (£0-15m) for 2024.

Also, while recent press coverage noted the appointment of debt advisers to explore refinancing options, Naked said it had already pointed this out in its results in December, confirming it was working with an adviser to explore options for replacing or renewing its existing credit facility.

Its existing credit facility expires in April 2025 and the company said it is "targeting a facility of similar scale with additional financial and operational flexibility, providing more capacity to pursue the actions being undertaken to return the company to profitable growth".

"Constructive discussions are being held with a number of parties to secure this," said the group.

A further update on trading and the refinancing process is planned before full-year results are published in July.

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