Naked Wines (WINE) Trading update summary

Financial performance and guidance

• FY26 revenue expected to be around £200m, aligning with strategic focus on a smaller, more profitable core business.

• Adjusted EBITDA anticipated towards the top end of the £5.5m to £7.5m guidance range.

• Net cash increased by £3m to £33.4m, reflecting £9m cash generation and £6m share buybacks.

• Inventory at its lowest level in five years, showing improved operational efficiency.

• Inventory liquidation costs expected to be around $17m over the medium term.

Cost savings and operational improvements

• Achieved £25m in annualised savings, surpassing the 3-5 year target set in March 2025.

• About £5m of G&A savings from Zero Based Budgeting will impact FY27 onwards.

• Price increases in Q4 FY26 had a meaningful impact on profitability, with greater effects expected in FY27.

Digital transformation and future outlook

• Transitioning from legacy in-house architecture to a third-party SaaS platform to enhance cost savings and customer experience.

• New platform expected to deliver up to £5m annualised opex savings by late FY29, with total potential annualised savings of up to £10m by FY29/30.

• Anticipated non-cash adjusted item of £2-£3m in FY26 results due to write-down of previously capitalised development costs.

• Capitalised technology development spend for FY27-FY30 now expected to be around £1m, down from up to £7m previously guided.