Virgin Wines has said it is confident it will meet its profit target after reporting “positive” half-year results.
The London-listed company posted a pre-tax profit of £1m for the six months to December 29, 2023, up from £90,000 in the same period in 2022.
Its revenue also increased from £33.6m to £34.2m over the same time, according to a new filing with the London Stock Exchange.
Virgin Wines said the first half of its financial year had been “positive… in spite of cost and consumer pressure” which gives it “confidence in ability to meet FY24 profit expectations”
The direct-to-consumer wine retailer added that its half-year performance was “underpinned by resilient business model and introduction of strategic initiatives”.
Chief executive Jay Wright said: “We are pleased to report a positive first half performance, with the underlying business performing well including through the peak Christmas period, and the introduction of our key strategic initiatives better positioning the company to achieve further growth into the future.
“Our customer base remains active and loyal, with cancellation rates continuing to trend positively despite macroeconomic uncertainties.
“We remain focused on high quality customer acquisition and are pleased that our conversion rate increased by 22 per cent year-on-year.
“Our flagship WineBank offering continues to prove popular, with the scheme achieving its second highest H1 revenue since inception.
“Looking ahead, we remain optimistic about the future prospects of the group.
“Warehouse Wines, our new proposition, has delivered encouraging early results, bringing in almost 2,000 previously ‘lapsed’ customers, and we have received positive feedback on our brand refresh.
“We expect a full year profit for 2024 in line with market expectations and continue to look at opportunities to continue our growth trajectory moving forward.”
Shares in Virgin Wines, which is listed on AIM, have slumped 33 per cent in the last 12 months as consumers squeezed by the high cost of living scale back on their favourite brands.
It swung to a £700,000 pre-tax loss in the previous financial year amid rampant cost inflation and warehouse issues.