Virgin Wines UK (AIM:VINO) has reported revenue of £61.0 million for the year ended 3 July, up 3.4% from £59.0 million a year earlier, as the AIM-listed online wine and spirits retailer returned to growth after three years of flat like-for-like sales.
The company swung to a pre-tax loss of £1.5 million, against a £1.6 million profit in FY25, while adjusted EBITDA fell to -£0.2 million from £2.3 million, as increased investment in its growth strategy combined with a challenging consumer environment and wider cost pressures. Gross margin narrowed to 28.3% from 30.1%, and diluted earnings per share fell to a loss of 2.1p from a profit of 2.3p.
"FY26 was another excellent year of progress for Virgin Wines," said chief executive Jay Wright, adding that the business "returned to growth after three years of flat like-for-like sales... in sharp contrast to the performance seen across the wider sector."
The company said its revenue growth significantly outperformed the broader online drinks market, which it said declined over the period, citing the IMRG Online Retail Sales Tracker. Customer acquisition rose sharply, with a 41% year-on-year increase in customers acquired across the group, though cost per acquisition rose to £15.63 from £13.76.
The active customer base grew to 148,000, with customer retention improving to 86% from 83% and sales retention rising to 92% from 88%.
Warehouse Wines, the group's value-led proposition, grew revenue 92% to £3.45 million and added 28,000 new customers; the company now expects the division to reach profitability in FY27, a year ahead of schedule.
Commercial partnerships, including Moonpig and Ocado, delivered double-digit revenue growth, and the group's newly launched mobile app recorded roughly 15,000 downloads in its first three months.
Virgin Wines remained debt-free, with gross cash of £14.7 million at year-end, down from £17.6 million, and net cash of £5.8 million, down from £9.3 million, excluding ring-fenced WineBank customer deposits; the fall reflects continued investment in growth alongside £2.4 million returned to shareholders through a share buyback programme.
Read more about Virgin Wines Uk
The company has signed a lease for a new National Distribution Centre in Preston, consolidating its existing Preston and Bolton fulfilment operations onto a single site, which it expects to fund from existing cash reserves and which should deliver structural operational benefits from FY28.
Trading in the first quarter of FY27 has continued to improve, with revenue up 4.5% year-on-year, cost per acquisition down 17%, double-digit growth in commercial revenue, and Warehouse Wines repeat sales up 113%.
"We've entered FY27 with real momentum and remain confident in our medium-term strategy," Wright said, pointing to the group's "loyal and growing customer base" and "strong, debt-free balance sheet" as positioning it to continue taking market share.