£300m wiped of Bargain Booze owner following profit warning

bargain booze

Alcohol retailer Conviviality saw 60 per cent wiped off its share values following a profit warning due to an error in its forecasts.

Earlier this week the Bargain Booze and Wine Rack owner announced that its profits would come in around £5.2 million lower than expected.

It attributed this 20 per cent drop to a “material error in the financial forecasts” in its wholesale and distributor arm Conviviality Direct.

The mistake has cost the retailer dearly, wiping more than £300 million of its market value, with shares dropping to the lowest levels since it floated on the London Stock Exchange in 2013.

“A number of enhanced controls and disciplines have been introduced to address this and management believes that appropriate corrective actions are in place,” it said.

In the 26 weeks to October 29, Conviviality saw sales jump 10 per cent year-on-year to £203 million.

Click here to sign up to Retail Gazette‘s free daily email newsletter