Naked Wines PLC - Norwich, England-based online wine seller - sets out a new strategic plan. Will now target £10 million to £15 million in annual earnings before interest, tax, depreciation and amortisation, against £5.0 million in adjusted Ebit in financial 2024 and £15.9 million in financial 2023. This goal is to be supported by £23 million in newly identified annualised cost savings, creating up to £30 million in additional net cash. Naked Wines is also aiming to deliver sustainable underlying revenue growth, with a 5% to 10% exit growth rate. Revenue is expected to stabilise at £200 million to £225 million by financial 2029. The firm is also prioritising reaching £75 million in cash from the March 2025 balance sheet, which will be delivered over the medium term largely by liquidating £40 million in excess inventory.

Chief Executive Officer Rodrigo Maza says: ‘A year ago, I made a commitment to deliver real value to all our stakeholders. We now have a powerful plan that fulfills that promise, as we deliver on FY25 guidance even in the face of challenging market conditions.’

Adds: ‘We will look to commence distributions, unlock capital from surplus inventory, double down on serving our most valuable members, and transform how we attract and retain new customers.’

Naked Wines anticipates ‘material additional one-off returns’ over the medium-term, enabled by ‘sustained profitability’. This will include the firm considering share buybacks, when it considers its share price to be trading at a material discount to the board’s view of intrinsic value per share.

Current stock price: 81.75 pence, up 30% in London on Thursday

12-month change: up 42%

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