Matthew Clark owners Conviviality double sales as company issues trading update
Conviviality Plc, the company that now owns Matthew Clark and Bibendum has reported that sales have almost doubled over the last 12 months, In a trading update covering the 52 weeks to 30 April 2017 ( (FY16: 53 weeks to 1 May 2016), the company, which is now the UK’s largest independent wholesaler, revealed sales of £1.560m.
Last year, at the same time, the group reported sales of £86.1m and profits after tax of £17m. Although FY16 revenue was subsequently restated to reclassify retrospective discounts given to customers and franchise fees earned from cost of goods sold to revenue and from operating costs to revenue respectively, to £84.1m.
It revealed that Net debt at 30 April 2017 was £99 million.
Conviviality has strengthened its management team and reorganised its activities into three business units; Conviviality Direct, Conviviality Retail and Conviviality Trading, enabling each to focus on serving its customers and suppliers. Conviviality Direct saw sales rise 6.4%, while Retail increased 6.1% and Trading sales were up 1%.
Conviviality Direct, the arm which includes Matthew Clark and Bibendum, saw sales of sales of £1,040m in the 52 weeks to 30 April 2017; up 6.4% on the corresponding prior period. With growth driven, said the company, by both a 1.6% increase in outlets and an increase in sales per outlet of 4.8%; a strong indication of customers switching to a “one stop shop” model as they benefit from the combined range and expertise of Matthew Clark and Bibendum.
Diana Hunter, Chief Executive Officer of Conviviality said,“We have come to the end of an unprecedented year of change and I am pleased to report a strong trading performance for the Group and for each of its business units. It is encouraging to see our customers and suppliers benefiting from the skills and the expertise of the enlarged Group, its scale and reach and its positioning as the UK’s leading drinks wholesaler and distributor.
“We have made great progress on the integration of Matthew Clark and the acquisition and integration of Bibendum PLB Group. Our focus will continue to be on improving the business and ensuring that benefits are realised from our greater scale, as we drive efficiencies for the Group and greater service for our customers.
“I would like to thank our passionate and talented team, as well as our suppliers, our customers and our Franchisees, for their loyal support through what continues to be an exciting journey for Conviviality.”
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