Virgin Wines UK PLC (AIM:VINO) shares dripped 8.2% lower to 45p after it delivered interim results showing flat sales and increased profits.
The shares had climbed from a year's low at the start of the year to 50p in the past week, ahead of the results.
Total revenue came of £34.1 million, versus £34.3 million a year ago, feeding through to profit before tax that was up 20% to £1.3 million, where profitability was "driven by operational efficiency".
In a separate statement, the company announced a strategic growth plan focusing on four key areas: customer acquisition, commercial partnerships, Warehouse Wines and the development of a mobile app, projecting revenues to increase to £100 million over the duration of the plan.
Broker Panmure Liberum said the results contained "no surprises", but growth in new customers "is the new news".
Analysts said lessons learned by management "provides confidence to throw more into marketing, grow the base ... and use the >£17 million of cash on the balance sheet to invest behind commercial partnerships, technology and Warehouse Wines".
They said the short-term cut to estimates "gets rewarded by targeting £40 million more revenue by 2030 and recovering back to 7% EBITDA margins ... while shareholders get rewarded with a share buy-back but no dividends.
"The plan is sound, but targets are stretching getting the company back to margins c80bps greater than pre-COVID."