(Sharecast News) - Naked Wines said in an update on Wednesday that full-year trading was in line with guidance, with adjusted EBITDA expected towards the top end of expectations after progress on pricing and cost reductions.
The AIM-traded online wine retailer said revenue for the 12 months ended 30 March was expected to be about £200m, reflecting its strategy to focus on a smaller but more profitable core business.

Its previous guidance range for revenue was £200m to £216m.

Adjusted EBITDA, excluding inventory liquidation and associated costs, was expected to be towards the top end of the £5.5m to £7.5m guidance range.

Naked Wines said inventory had continued to improve and was at its lowest level in five years.

Net cash, excluding lease liabilities, increased by £3m to £33.4m, reflecting £9m of cash generation, partly offset by £6m of share buybacks.

The company's previous net cash guidance, adjusted for the buyback programme, was £31m to £35m.

Naked Wines said price increases had made a meaningful contribution to profitability, particularly in the fourth quarter, and would have a significantly greater impact in the 2027 financial year as they annualise.

The firm said it had now actioned £25m of annualised savings, exceeding the £23m three-to-five-year target set in March 2025.

About £10m of those savings were actioned late in the 2026 financial year and would largely benefit 2027, while the total included around £5m of general and administrative savings from a zero-based budgeting process started in the fourth quarter.

Chief executive Rodrigo Maza said the company had delivered "a strong year" in 2026.

"We are pleased to have delivered a strong year in FY26, which reflects substantial progress with the new strategy set out last March," he said.

"The decisions we made during the year will materially improve our profitability over the periods to come, as we continue to build a stronger and more resilient business which will then grow."

Naked Wines also announced a planned transition from its legacy in-house digital architecture to a third-party software-as-a-service platform, citing recent advances in SaaS systems.

The company said the new platform was expected to generate future cost savings, improve site performance, marketing effectiveness and conversion, support improved customer acquisition break-even, and strengthen resilience and security.

Temporary implementation costs were expected to be offset by the newly identified £5m of annual general and administrative savings.

The transition was also expected to deliver up to £5m of annualised operating expenditure savings by late in the 2029 financial year, which were not included in the £25m of savings already actioned.

Naked Wines said that implied a potential total annualised saving of up to £10m in the 2029 and 2030 financial year compared with 2027.

As a result of moving to a third-party platform, Naked Wines said it expected to recognise a £2m to £3m non-cash adjusted item in its 2026 results relating to previously capitalised development costs.

Capitalised technology development spend for 2027 to 2030 w3as now expected to be about £1m, compared with previous guidance of up to £7m.

The company said it would provide 2027 guidance when it reports audited 2026 results in the summer.

"We go into FY27 with momentum and energised for what lies ahead for Naked," Maza said.

At 0919 BST, shares in Naked Wines were up 2.08% at 73.5p.

Reporting by Josh White for Sharecast.com.

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