Virgin Wines UK (LON:VINO) said it expects revenue and underlying earnings (EBITDA) for the financial year just ended will be a shade ahead of expectations.
The company, which sells wines directly to consumers, expects revenue in the year to the end of June 2021 will be around £73.8mln, compared to current market expectations of £73mln and revenue the year before of £56.6mln.
EBITDA is expected to clock in at £6.4mln, up from £4.4mln the year before and versus the consensus broker forecast of £6.3mln.
READ Virgin Wines UK lifts full-year expectations
The customer base grew year-on-year by 24% and is up 44% since the start of 2020, the company revealed.
Net cash at the end of June stood at £8.4mln.
Revenue and earnings guidance was lifted after a strong performance in May and June and the company said the positive sales momentum has continued into July despite the Government's lifting of lockdown restrictions and the opening up of hospitality across England.
The board is confident that the underlying growth drivers that the directly-to-consumer wine sector is experiencing, as well as the shift in customer behaviour towards online retailing, remain strong.
Virgin Wines today basically telling that online wine is still a good business post lockdowns:
The Board is pleased to announce that the financial year finished positively with strong levels of customer demand in May and June
— Symmetry (@Symmetry_Invest) July 20, 2021
“We finish FY21 in excellent shape and in a stronger position than ever to continue our growth. Whilst we will all be watching with interest consumer trends that may develop over the coming year, we have seen nothing but encouraging signs over recent months that the customers we have acquired are staying loyal, our subscription schemes are as robust as ever and that our ability to attract new customers at a competitive cost per recruit remains.
“I strongly believe the strength of our business model, with our consistent and proven ability to deliver increased profit in tandem with increased revenue, places us in an advantageous position when it comes to being a long-term e-commerce winner in a post lockdown world," said Jay Wright, the chief executive officer of Virgin Wines.
Shares in Virgin Wines were up 3.8% at 205p.