Naked Wines has unveiled a new strategic plan to return the online wine seller to sales growth and to boost earnings.
Shares in the company shot up by as much as a quarter in early trading as investors welcomed the turnaround efforts.
The company’s share value has tumbled by more than 75% over the past three years on the back of waning sales and further operating losses.
Last year, the company said it was starting to see signs of improvement after a major restructuring process designed to reduce costs and stock levels.
On Thursday, chief executive Rodrigo Maza said: “A year ago, I made a commitment to deliver real value to all our stakeholders.
“We now have a powerful plan that fulfils that promise, as we deliver on full-year 2025 guidance even in the face of challenging market conditions.
“We will look to commence distributions, unlock capital from surplus inventory, double down on serving our most valuable members, and transform how we attract and retain new customers.”
Naked Wines told shareholders it is aiming to return to “sustainable” underlying revenue growth as part of its fresh five-year plan.
The group is also seeking to boost the level of cash on its balance sheet and to reach between £10 million and £15 million of annual earnings before tax, interest, depreciation and amortisation.
It stressed that it has made “significant strides” in improving its financial position over the past 18 months and is on track to report £33 million in net cash for the year to March 31.
This will reflect a £13 million year-on-year increase and is near the top end of forecasts.
Naked said its recent performance has been particularly buoyed by reduced inventory levels.
Jefferies equity analyst Andrew Wade said: “While there is plenty of detail to be worked through here, it is encouraging to see Naked committing to significant cash returns, a substantial sustainable Ebitda and a longer-term growth agenda.”
Shares in the company were 25% higher at 78.9p in early trading.
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