Naked Wines PLC (AIM:WINE, OTCQX:NWINF) is becoming "leaner and stronger", said CEO Rodrigo Maza, in comments accompanying the firm’s pre-close trading update.
“With higher levels of cash, a moderating decline in sales and demonstrable underlying profitability we have a strengthening platform from which to build as we continue to drive towards profitable growth,” he said in the statement.
"[The financial year] was a challenging year for our winemakers, our staff, our customers and our shareholders and I'd like to thank all of them for their continued support and loyalty. We hope to continue demonstrating tangible progress."
Naked Wines told investors it expects total revenue to be around £290 million, a 13% reduction versus the prior year, but an improvement from the 18% decline seen at the half-year mark.
Earnings (adjusted EBIT) are anticipated to be around £5 million, which would be at the higher end of the previous guidance of £2 million to £6 million.
It noted, meanwhile, that statutory operating loss is anticipated between £13 million and £18 million, mainly through impairments and restructuring charges.
Significantly, the company highlighted an improvement in its net cash position which stood at £20 million, ahead of guidance which predicted between £5 million and £15 million as the year’s end total. The coffers were boosted by the early redemption of a vendor loan note.
It also highlighted ‘notable progress’ made in reducing general and admin spending by 11%, and said it successfully decreased inventory.