Wineflair, the Northern Ireland off-licence and convenience food chain, has said the acquisition of 12 new outlets and competition from UK multiples is a key factor behind a sharp dip in its pre-tax profits to just over £200,000 last year, according to its latest financial accounts.
The group, which has 44 stores throughout the North – predominately in the greater Belfast area – employs around 340 people including its seven directors. They are Alan McGuinness, Nial MacKinlay, Ronan Hughes, Nama's former Northern Ireland advisor Frank Cushnahan, Christopher McKay, Roger Hall and Andrea Carson.
Although Wineflair reported improved turnover of £32.1 million for the year to end-September 2015, pre-tax profit fell from £609,945 in 2014 to £203,164 last year.
Bank loans and overdrafts jumped from £374,841 in 2014 to more than £2 million in 2015 – a period when Wineflair acquired 12 new outlets.
The directors said in the accounts that they would continue to “seek opportunities to increase business both organically and through acquisition with a number of such opportunities currently under review”.
They also stated that, while the company maintains a significant grocery division, they envisage that any future expansion will be focused on its core business – off sales.
“The decline in gross margin was anticipated as arising from the integration of 12 additional outlets. The directors are satisfied that this has now been completed,” they said.
While they were “encouraged” by the growth in turnover year on year, directors warned that the business environment continues to be “challenging” because of competition. They are not recommending a final dividend payment but confirmed an interim ordinary dividend totalling £437,762 had been paid.
Wineflair’s wage bill increased to more than £2.9 million last year while the directors’ remuneration totalled £90,121.
The accounts record that the group has total assets less current liabilities of more than £18.5 million.
The group's financial statements were audited by chartered accountant David Gray, on behalf of RSM Northern Ireland.
