Naked Wines PLC on Friday said its interim loss widened on impairments, while a decrease in customer sales drove a plunge in revenue.

Shares in Naked Wines rose by 7.6% to 46.25 pence each in London on Friday morning.

The Norwich-based online wine seller said in the half year ended October 2 its pretax loss widened to £9.7 million from £215,000 the year before, due to an impairment of non-current assets of £11.5 million.

Revenue fell by 20% to £132.3 million from £165.8 million a year earlier, driven by a 16% reduction in repeat customer sales, Naked Wines explained.

Looking ahead, Naked Wines left its guidance unchanged, anticipating adjusted earnings before interest and tax in the range of between £2 million and £6 million. In the financial year ended April 3, adjusted Ebitda was £16.3 million.

However, the firm lowered its outlook. It predicts annual sales for the year ending March 28 will fall between 12% and 16%, from £354.0 million a year prior.

Executive Chair Rowan Gormley said: ‘We are moving towards a period of sustained cash generation. We have taken out £3 million of cost with £10 million more to come and expect to generate £40-50 million 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.’

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