Business
Growth Strategy and Capital Allocation Plan
Growth Strategy and Capital Allocation Plan.
About this update from Virgin Wines Uk Plc
[{"type":"text","content":"\n\n26 March 2025\n \n\n \nVirgin Wines UK plc\n(\"Virgin Wines\" or the \"Group\")\nGrowth Strategy and Capital Allocation Plan\nPlans to turbocharge growth delivering £100m in annual revenue at a 7% EBITDA margin in the medium term\nVirgin Wines UK plc (AIM: VINO), one of the UK's largest direct-to-consumer online wine retailers, is pleased to announce its new growth strategy (the \"Growth Strategy\") and capital allocation plan (the \"Capital Allocation Plan\").\nJay Wright, Chief Executive Officer at Virgin Wines, commented:\n\"I am delighted to release our Growth Strategy and Capital Allocation Plan, both of which underpin the next chapter of Virgin Wines' growth. The underlying business is performing well, and we have a unique business model as well as a dedicated and highly experienced team. We look forward to executing this strategy to turbocharge Virgin Wines' growth and deliver value for all of our stakeholders.\"\nSince Virgin Wines listed on AIM in March 2021, the Group has remained debt free, consistently cash generative and has grown its revenues by 45% since the start of FY2020 despite volatile and challenging trading conditions. This growth has been driven by strong commercial disciplines, a loyal and active customer base and the introduction of new initiatives and propositions to attract new customers. As of end Dec 2025, the Group had net cash of £17.3m and a further £6.4m of customer WineBank deposits giving a gross cash position of £23.7m. The Board has been actively engaging in discussions with investors as to the best use of cash to deliver increased value to shareholders and drive growth.\nThe Growth Strategy, which is to be implemented over the next 5 years, has been devised with the objective of propelling annualised revenue to at least £100m at the end of that period (FY24: £59m revenue), at EBITDA margins of 7%. Alongside the Growth Strategy the Group intends to launch a share buyback programme enabling the Group to purchase up to 15% of the existing share capital of the Company in order to return value to shareholders.\nThe Growth Strategy is focused around 4 key strategic goals:\n1) Increased customer acquisition\nIncreasing the size of the customer base by acquiring high numbers of new, quality customers is the fuel that drives the Group's growth. Given the volatility of the co...