Conviviality half-year figures show impact of Matthew Clark acquisition

By Mathew Lyons

Published: 01 February, 2016

Conviviality plc has released its first half-year results since its reverse takeover of leading on-trade distributor Matthew Clark last autumn.

Revenue for the 27 weeks to November 1, 2015 rose 38% to £252 million, with profit before tax climbing 19% to £3.8 million.

The impact of Matthew Clark on the group's business is evident in the fact it contributed £61 million of the headline £252 million turnover in the 23 days from its acquisition on October 7 to the end of the six-month period.

Conviviality itself reports sales up 0.8% across the half-year, with a 7% rise in the number of stores owned by multi-site franchisees. Closures were down 49% and the new-store pipeline is at a three-year high with 162 potential sites under review.

Turnover at Matthew Clark was up 2.7% to £60.6 million in the period from October 7 to November 1.

Since the acquisition, Matthew Clark has added 841 outlets to its roster of customers, up 27% year on year. The group also announced its Christmas trading figures today, with off-trade sales up 1.1% in the two weeks to January 3 and on-trade sales up 20%.

Diana Hunter, chief executive of Conviviality, said: "This is a strong set of results during a period of significant transformational change. With Matthew Clark we now have a firm foundation in the expansive on-trade market from which to build on, and our success over the important Christmas period gives us confidence that the second half will deliver further growth.

"I am pleased with the progress we have made to bring our two businesses together. I would like to thank all of our people, our franchisees, our on trade customers and our suppliers who have contributed to our success."

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