Naked Wines continues to slash costs as the online booze retailer looks to leave behind what was a disappointing year for sales.
The business that introduces customers to independent winemakers has today reported in its half year results a total revenue of £132.3m, down 20 per cent from £165.8m last year.
However, the loss-making firm has now said its “doing what we said we would” as the number of its customer orders are in line with forecasts.
Just last month the company had again reduced its forecast for full-year revenues, which are expected to decline by up to 16 per cent, compared to an earlier forecast of between eight and 12 per cent.
Total sales also slumped to £131.6m, down 21 per cent from a previous £165.8m.
Despite Naked Wines’ attempt to inch its way back to customers, new sales dropped to £9.1m, down 32 per cent from £13.4m.
Rowan Gormley, executive chairman, said: “We are moving towards a period of sustained cash generation.
“We have taken out £3m of cost with £10m more to come and expect to generate £40-50m of cash from inventory over the next 18 months.
“In addition we have made good progress with testing an enhanced customer proposition to restore us to growth.
“I want to thank our people, our winemakers and our customers for their support and reiterate our determination to make sure that they are rewarded for it.”
In September, Gormley had apologised in a letter to shareholders after it had reported disappointing full year results.
The past year has caused Naked Wines to struggle while trying to burn through excess stock and sustaining high inflation in key markets impacting their supply chain costs.
