Naked Wines to return up to £5.7m to investors, share price soars

(Sharecast News) - Shares in Naked Wines fizzed on Friday, after the online wine retailer reiterated full-year guidance and unveiled plans to return up to £5.7m to shareholders.

The Aim-listed business, which funds production costs for independent winemakers, said it intended to repurchase ordinary shares at a fixed price of 80p per share through a tender offer, for an approximate aggregate value of between £2m and £5.7m.

The final amount returned to shareholders will be confirmed once Naked's peak pre-Christmas trading period, which has the greatest significant for full-year results, is taken into account.

The offer - which Naked said was the most effective way of returning surplus capital to shareholders, in line with its capital allocation framework - was announced alongside an update on interim trading. Naked confirmed its first-half performance had been in line with full-year guidance, including progressive growth in underlying earnings and continued cash generation, despite an expected dip in revenues.

It continued: "The first half delivered continued progress on the execution of our strategy to build a better and more profitable business. While customer acquisition volumes remain low, the members we are acquiring are of higher quality."

The group - which will publish interim results on 11 December - is currently forecasting annual revenues of between £158m and £175m, and adjusted earnings before interest, tax, depreciation, amortisation and inventory liquidation of £7.6m to £9m.

As at 1130 GMT, the stock had surged 16% at 72.80p.

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