Naked Wines PLC shares rose on Tuesday, as it said it expects annual revenue to be in line with guidance and leave it with a ‘strengthening platform’ despite a ‘challenging year’.

The stock was trading 11% higher at 57.64 pence on Tuesday afternoon in London.

The Norwich-based online wine seller said it expects a statutory operating loss between £13 million and £18 million for the 52 weeks to April 1, compared with the £14.3 million from the 53 weeks to April 3, 2023.

The ‘main adjusting items’ should include between £9 million and £11 million in goodwill and asset impairments, and £6 million and £8 million in US inventory provisioning.

Naked Wines also anticipates adjusted earnings before interest & tax of around £5 million, at the higher end of its £2 million to £6 million guidance range but down from £15 million ‘on a 52-week comparable basis’.

Furthermore, Naked Wines said it expects total revenue to have dropped 13% to approximately £290 million from £333 million.

Naked Wines did however report a ‘strengthened’ cash position, with net cash of £20 million at April 1 having doubled the £10 million it had on April 3, 2023.

Naked Wines also said it made ‘good progress on delivering key initiatives’ throughout the year, having cut both operating general & administrative costs and inventory, excluding the impact of provisioning, by 11%.

‘These results demonstrate the continued progress that is being made to make the business leaner and stronger,’ said Chief Executive Officer Rodrigo Maza. ‘With higher levels of cash, a moderating decline in sales and demonstrable underlying profitability we have a strengthening platform from which to build as we continue to drive towards profitable growth.

‘FY24 was a challenging year for our winemakers, our staff, our customers and our shareholders and I’d like to thank all of them for their continued support and loyalty. We hope to continue demonstrating tangible progress in FY25.’

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