Virgin Wines UK PLC shares fell on Thursday after the company said it expects revenue for fiscal 2023 to be below the prior year after its first-half performance was impacted by events such as the postal strike, bad weather and the death of Queen Elizabeth II.
Shares at 0817 GMT were down 14.5 pence, or 20%, at 58.0 pence.
The online wine retailer said revenue for the half year ended Dec. 31 was 33.7 million pounds ($40.9 million) compared with GBP40.5 million the same period a year ago.
The company said Christmas orders were cut off a week earlier than usual due to the postal strikes and reduced courier capacity caused by the cold snap, which is estimated to have caused around GBP1.5 million in lost revenue.
As a result, the group now expects revenue for fiscal 2023 to be around GBP63 million, compared with GBP69.2 million reported in fiscal 2022.
The earnings before interest, taxes, depreciation and amortization margin is forecast to be between 4% and 5%, while the underlying Ebitda margin–which strips out exceptional and other one-off items–is expected in the range of 6% to 7%.
The company said, however, that it remains debt free with a strong net cash balance of GBP7.8 million at Dec. 31, and with good levels of inventory.
“Whilst being mindful of the pressures on the business, especially with regards to the high inflationary landscape, we remain confident in our future prospects, driven by the ongoing strength of the brand, our unique offering and loyal customer base,” Chief Executive Jay Wright said.