Naked Wines, the online wine retailer, has reported widening losses as it tries to improve its recent performance and regain investor confidence.
According to a statement released on Wednesday, the company’s revenue declined 18% to £290 million, representing a 13% decrease on a comparable basis due to challenges in the US market.
The company reported losses of £16.3 million, compared to £15 million the previous year, following impairments and stock write-downs totalling £12.2 million, down from £28.4 million.
Cash at the end of the year was unexpectedly higher at £20 million, compared to £10 million the year before.
Looking ahead to the year ending April 2025, Naked Wines projects sales to range between £240 million and £270 million, with underlying earnings anticipated to be between a £2 million loss and a £6 million profit.
Chairman Rowan Gormley assured investors that the company is on track for a return to growth but acknowledged that this may take time to be evident from the current trading results, which reflect the company’s past rather than its emerging future.
Following a surge in demand during the pandemic, Naked Wines has faced challenges with reduced demand and excess stock.
Additionally, the company announced the appointment of Dominic Neary as the new Chief Financial Officer, starting in November. Neary, previously CFO at Mind Gym, will be instrumental in the company’s efforts to stabilize.
Gormley commented, “We are making significant progress in turning things around. With the cost base and liquidity issues addressed, our focus now shifts to achieving profitable growth for Naked Wines.”
