Annual Results

Virgin Wines UK PLC

21 October 2026

 

21 October 2026

(“Virgin Wines”, the “Company” or the “Group”)

Audited Annual Results

Return to growth and significant market share gains, with strong progress across all four strategic growth pillars

Virgin Wines UK plc (AIM: VINO), one of the UK’s largest direct-to-consumer online wine retailers, announces its audited Annual Results for the year ended 3 July 2026 (“FY26” or the “Period”).

Financial highlights 

	Revenue increased by 3.4% year-on-year to £61 million (FY25: £59 million), representing a return to growth and significantly outperforming the wider online drinks market, which declined during the Period.1
	Group profitability reduced following the increased investment in its growth strategy, coupled with the challenging consumer environment and wider cost pressures, as predicted: Adjusted EBITDA of -£0.2m (FY25: £2.3m) Loss before tax of -£1.5m (FY25: £1.6m)
	Continued strong cost discipline with variable operational cost per case increasing by just 2% despite significant increases in wages, fuel and packaging costs.
	The active 1–12-month customer base grew year-on-year to 148k, the customer retention rate increased to 86% (FY25: 83%) whilst the sales retention rate also increased to 92% (FY25: 88%)
	The continued loyalty of the key WineBank customer base is evidenced by the low cancellation rate of just 15.5%
	The Group remains debt free with a strong balance sheet despite material investments in growth and a significant share buyback programme. Gross cash at year end was £14.7m (FY25: £17.6m) whilst net cash was £5.8m (FY25: £9.3m), excluding ring-fenced WineBank customer deposits. Balance Sheet strength has been maintained alongside continued investment in customer acquisition, technology and operational infrastructure, as well as £2.4m being returned to shareholders through the share buyback programme A strong Balance Sheet provides the Group with the flexibility to continue investing in its next phase of growth, including the development of its new National Distribution Centre

Results summary	FY26	FY25
	£'m	£'m
Revenue	61.0	59.0
Gross profit	17.2	17.8
Gross profit %	28.3%	30.1%
EBITDA pre share based payments	-0.2	2.3
Loss/profit before tax	-1.5	1.6
Diluted earnings per share	-2.1p	2.3
Net assets	19.3	22.6
Cash and cash equivalents	5.8	9.3

Strategic highlights

Continued execution of the Group’s growth strategy, with strong progress made across all four strategic pillars:

	Accelerating customer acquisition o         Delivered exceptional year-on-year gains with a 41% increase in customers acquired across the Group o         Continued to retain a disciplined and efficient approach to investment, despite an increase in volume with cost per acquisition modestly increasing to £15.63 (FY25: £13.76)
	Further development of Commercial partnerships o         Revenue generated through Commercial partnerships and corporate gifting delivered strong year-on-year growth with Moonpig and Ocado continuing to deliver growth   o         Strong pipeline of new opportunities across new and existing partnerships including a new initiative to expand distribution into UK sports stadiums
	Strong growth in Warehouse Wines o         Warehouse Wines continues to deliver excellent progress with revenue having increased by 92% year-on-year to £3.45m and 28,000 new customers acquired o         Strong evidence that the value-led proposition continues to resonate with a distinct and attractive segment of the UK wine market o         Warehouse Wines is expected to achieve profitability in FY27, one year ahead of schedule
	Technology and customer engagement o         Mobile app successfully delivered on time and on budget, with Q4 FY26 KPI’s showing strong performance across downloads, revenue generated and average order value o         Continued investment in technology and data capabilities to enable increasingly personalised, relevant and targeted customer communications o         Further technological investment planned for FY27 to improve data analytics, customer engagement and retention to help deliver sales growth

Investment in operational excellence

	Agreed a lease for a new National Distribution Centre in Preston, enabling the Group to consolidate its existing Preston and Bolton fulfilment operations onto a single site
	Expected to deliver meaningful synergies, economies of scale and structural operational benefits from FY28 onwards

Current trading and outlook

	Positive start to trading through Q1 FY27, with continued progress across all pillars of the growth strategy: o         Revenue up 4.5% year-on-year o         Customer acquisition up year-on-year with cost per acquisition reduced by 17% o         Commercial revenue delivered double-digit growth o         Warehouse Wines continues to grow, with repeat sales up 113%
	Despite inflationary pressures, rising duties, new regulatory costs and the continuation of a challenging consumer environment the Company is executing on its growth strategy and delivering solid year-on-year growth and vastly outperforming the market.
	Development of the new National Distribution Centre remains a key FY27 priority and is expected to deliver important operational efficiencies and benefits from FY28 onwards.
	While the sector continues to face a challenging consumer backdrop, cost of living pressures and significant increases in alcohol duty, EPR, wages and National Insurance contributions, the business remains focused on mitigating these pressures wherever possible.
	The Board is confident that the Group’s loyal customer base, disciplined approach to acquisition and costs, growing the Commercial and Warehouse Wines divisions, continued technology investment and operational efficiency leave the business well positioned to continue growing and take market share.

Jay Wright, Chief Executive Officer, commented:

“FY26 was another excellent year of progress for Virgin Wines. Despite a challenging consumer environment and significant cost pressures across the sector, we returned the business to growth after three years of flat like-for-like sales, with revenue increasing by 3.4% to £61 million and significant market share gains, in sharp contrast to the performance seen across the wider sector.

Importantly the investments we are making are delivering results. We saw strong growth in customer acquisition with 41% more customers acquired, Warehouse Wines grew revenue by 92% to £3.45 million, our Commercial partnerships continued to develop, and early indications are that our new mobile app is performing strongly.

“Looking ahead, we’ve entered FY27 with real momentum and remain confident in our medium-term strategy. With a loyal and growing customer base, increasing progress across our key growth pillars and a strong, debt-free balance sheet, we believe we are well positioned to continue taking market share and deliver further growth in FY27.”

1 Source: IMRG Online Retail Sales Tracker: June 26 & December 25

- Ends -

Enquiries:

Virgin Wines UK plc Jay Wright, CEO Amanda Cherry, CFO Cavendish (Nominated Adviser and Sole Broker)  Matt Goode, Seamus Fricker, Elysia Bough (Corporate Finance) Matt Lewis (Corporate Broking) Hudson Sandler (Public Relations) Dan de Belder Harry Griffiths Jackson Redley	Via Hudson Sandler
	Tel: [phone] [e-mail] Tel: [phone]

Notes to editors:

About Virgin Wines

Virgin Wines is one of the UK's largest direct-to-consumer online wine retailers. It is an award-winning business which has a reputation for supplying and curating high-quality products, excellent levels of customer service and innovative ways of retailing.

The Company was established in 2000 by the Virgin Group and was subsequently acquired by Direct Wines in 2005 before being bought out by the Virgin Wines management team, led by CEO Jay Wright and former CFO Graeme Weir, in 2013. It listed on the London Stock Exchange's Alternative Investment Market (AIM) in 2021. Virgin Wines is headquartered in Norwich, with two fully bonded national distribution centres in Preston and Bolton. The Company stocks over 650 wines sourced from an extensive global network of trusted winemaking partners and suppliers, which it sells to a large active customer base of over 145k, the majority of whom are on one of the Group's subscription schemes.

The Company drives the majority of its revenue through its WineBank subscription scheme, using a variety of marketing channels, as well as through its Wine Advisor team, Wine Plan channel and Pay As You Go service.

The Company also has a fast-growing Commercial division, as well as having recently launched Warehouse Wines, its DTC value proposition in 2024.

Along with its extensive range of award-winning products, Virgin Wines was delighted that its flagship WineBank service was awarded 'Wine Club of the Year' at the 2024 IWC Awards, as well as being voted as ‘Online Retailer of the Year’ for 2026 at the Drinks Business Awards. In addition, the Groups Wine Buying team have won a host of high profile awards in recent years with individual members being named ‘Buyer of the Year’ by Decanter magazine, ‘Wine Buyer of the Year’ and ‘Rising Star Drinks Buyer of the Year’ at the Drinks Buyer Awards 2026, whilst the team were awarded ‘Sustainable Drinks Buying Team of the Year

https://www.virginwinesplc.co.uk/

Chairman's statement

Overview

Virgin Wines achieved a resilient and creditable performance in FY26 amidst a challenging consumer backdrop and continued pressures facing the sector. Despite the headwinds affecting the UK consumer, as well as higher alcohol duty and broader inflationary cost pressures for the Company, we are pleased to have returned to growth and continued to take market share of the online sector.

Our performance demonstrates the resilience of our business model, the strength and loyalty of our customer base and, importantly, the impact of the growth strategy, which we set out last year. We have continued to invest across each of the four pillars of that strategy and are encouraged by the progress made to date.

We are also making an important investment in our operational infrastructure through the agreement of a new warehouse facility in Preston. This will enable us to consolidate fulfilment onto a single site and deliver meaningful improvements in efficiency and capacity as the business develops when the warehouse opens in the early part of next year.

Performance

During the year, we were pleased to deliver revenue ahead of the prior year at £61m, against a subdued market backdrop and compared with the overall online wine, beer and spirits sector, which saw a significant decline. This outperformance highlights the market share gains achieved by Virgin Wines.

Customer acquisition has been encouraging. As part of our strategy, we increased investment in targeting new customers and have delivered 41% growth in customers acquired year-on-year across the Group. Importantly, this has been achieved while maintaining our disciplined approach, leveraging the benefits of our multi-channel route to market.

Our value proposition, Warehouse Wines, has continued its fast start, with revenue increasing by 92% year-on-year.

Our Commercial channel has also continued to grow, supported by the strength of our key partnerships, including Moonpig and Ocado, both of which have delivered strong revenue growth.

Growth strategy

The progress on our strategy for growth during the year reinforces the Board’s confidence in the four pillars of our medium-term plan and in the opportunities for Virgin Wines over the coming years.

Customer acquisition remains a key focus for the Group. Whilst we are pleased with the 41% year-on-year increase in new customers, demonstrating that Virgin Wines can successfully increase customer recruitment while retaining a disciplined approach to investment, we are focused on accelerating this growth. We believe there remains a significant opportunity to build on this progress by increasing our use of digital channels, data and technology to make our marketing more personalised, targeted and efficient.

Our Commercial channel continues to develop into an increasingly important source of diversified growth. Existing partnerships continue to perform well and we have secured substantial new Commercial relationships during the year, alongside a new supply channel into a number of football and cricket stadiums. These partnerships broaden our reach, provide incremental revenue streams and enable the business to leverage its existing sourcing and operational capabilities efficiently.

Warehouse Wines continues to demonstrate the potential of its value led proposition. With revenue growth of 92% over the year, the brand is resonating with a different customer segment of the UK wine market. We are optimistic about its continued growth and its potential to become a more meaningful contributor to Group revenue and profitability over the medium term.

Finally, our mobile app was successfully launched on time and on budget during the year and its early performance has been encouraging, with high engagement and approximately 15,000 downloads in the three months since launch. We will continue to develop the app and invest in our wider technology and data platforms, allowing the business to engage customers more effectively, enhance the personalisation of our communications and improve operational efficiency and ultimately customer acquisition.

Together, the progress across these four pillars gives us confidence in the strategy. While the external environment has been tough, the underlying direction of travel remains encouraging.

Investment in our operations and capital allocation

During the year, we agreed a lease for a new warehouse facility in Preston, enabling us to consolidate our existing Preston and Bolton fulfilment operations onto a single site. The build and fit out will take place during FY27, with the Bolton site expected to close by the end of February 2027.

The investment is expected to deliver meaningful synergies, economies of scale and structural operational benefits from FY28 onwards. It represents an important investment in the long-term efficiency and scalability of Virgin Wines and provides the operational platform required to support our growth ambitions.

The Group remains debt-free and maintains a healthy cash position.

Outlook

The consumer environment remains challenging, however the Board remains confident in Virgin Wines’ strategy and in the Company’s ability to deliver increased revenue growth and improved underlying profitability over the medium term.

Trading so far in FY27 has been in line with our expectations and we remain focused on building on the progress made across our strategic growth priorities.

The resilience, commitment and enthusiasm shown by the Virgin Wines team has once again been exceptional. On behalf of the Board, I would like to thank everyone across the business for their hard work during the year.

John Risman

Chairman

20 October 2026

Chief Executive’s review

Introduction

I am pleased to report on another year of excellent progress for Virgin Wines, as we have continued to invest in our growth strategy. Despite a challenging consumer environment, we returned the business to growth after three years of flat like-for-like sales, as well as delivering meaningful market share gains.

During the year we increased revenue by 3.4% to £61m, which is all the more creditable when compared with the broader online wine, beer and spirits market which experienced a double-digit decline. Against a backdrop of continued pressure on consumer confidence, alongside increased alcohol duty, EPR and inflationary cost pressures, this performance demonstrates the resilience of the business and the strength of our proposition.

Importantly, we are seeing clear evidence that the investments we are making are having a demonstrable impact, in particular reflected by a 41% increase in customers acquired year-on-year. Our active 1–12-month customer base grew year-on-year to 148k, our customer retention rate increased to 86% (FY25: 83%) whilst the sales retention rate also increased to 92% (FY25: 88%). The loyalty of our key WineBank customer base continued to be shown by its low annual cancellation rates of just 15.5%.

Our Commercial channel continued to grow, generating revenue of £9.4m during the year, with our key partnerships such as Moonpig and Ocado continuing to perform well and show growth. We continue to believe our commercial proposition has the potential to become an increasingly meaningful contributor to the Group over the medium term with a significant pipeline of new opportunities available.

Warehouse Wines also maintained its strong trajectory, with revenue increasing by 92% to £3.45m.

Technology is also playing an increasingly important role. During the year we launched our mobile app on time and on budget, with 15k downloads in the first three months following launch and encouraging early levels of engagement. We are continuing to invest in our wider technology and data capabilities, which will allow us to communicate with customers in a more personalised, relevant and targeted way, enhancing the customer experience.

Alongside investing in growth, we have maintained our focus on operational efficiency. We continue to enhance our warehouse management technology and the integration of our systems, helping us improve productivity, accuracy and service levels. We have also taken an important step in the evolution of our operational infrastructure through the agreement of a lease for a new warehouse facility in Preston, which will consolidate our fulfilment operations onto a single site and provide meaningful efficiencies as the business expands.

Our balance sheet also remains healthy, the Group remains debt-free with gross cash of £14.7m and net cash of £5.8m (excluding customer WineBank deposits). Our strong cash position has enabled us to invest in customer acquisition, technology and our operational infrastructure while also returning a further £2.4m to shareholders through our share buyback programme (following £2m the previous year).

Finally, I would like to thank everyone across Virgin Wines for their continued hard work, energy and commitment. The team has shown great tenacity in what has been another challenging year for the sector, working tirelessly to implement a strategy of investment and change across the Business, which positions the Group well for the future.

Financial overview

During the year, revenue increased by 3.4% to £61m (FY25: £59.0m), demonstrating an encouraging return to growth.

Adjusted EBITDA for the year was -£0.2m (FY25: £2.3m), with a loss before tax of £1.5m (FY25: £1.6m profit). As previously stated, the fall in profitability reflects both the planned increased investment behind our growth strategy and the significant cost pressures currently facing the sector.

FY26 represented the first full year of the new alcohol duty regime and EPR, alongside further increases in the National Living Wage, National Insurance contributions and other significant input costs.

We have continued to work hard to mitigate these pressures through disciplined management of our operations, customer acquisition and fixed costs, alongside the flexibility provided by our open-source buying model. This includes adapting where we source from, blending wines to deliver the best possible quality and value, managing alcohol levels where appropriate and making greater use of UK bottling.

Our balance sheet remains strong, and the Group remains debt-free, with gross cash of £14.7m at year end and net cash, excluding ring-fenced WineBank customer deposits, of £5.8m. This is after continued investment in our growth strategy, technology and operations, and leaves us well positioned to fund our next phase of growth.

Growth strategy

We have made encouraging progress across each of the four pillars of our growth strategy during the year. Our strategy is focused on four key levers:

1. New customer acquisition

Customer acquisition remains a major focus and an area where the increased investment made during FY26 is delivering clear results.

Across the Group, the number of customers acquired increased by 41% year-on-year to 113k. Importantly, we have achieved this significant increase in volume while retaining our disciplined approach to investment, with cost per acquisition at a still modest level of £15.63 (FY25: £13.76).

We continue to use a broad mix of channels to recruit customers, including partnerships, strategic accounts, digital and social marketing and email re-recruitment. This diversity gives us flexibility over where we deploy investment and allows us to focus on the channels delivering the strongest customer returns for various customer segments and at certain times.

There remains considerable opportunity ahead. Continued investment in our technology and data platforms will allow us to make our marketing increasingly personalised, relevant and targeted, supporting further recruitment while maintaining attractive lifetime value.

2. Commercial

Our Commercial channel continues to provide an important source of growth, allowing us to utilise our sourcing, fulfilment and operational capabilities across a broader range of partners, customers and occasions.

Revenue from the channel increased to £9.4m during the year (FY25: £8.9m). Key partnerships, such as Moonpig and Ocado, continue to perform well. We continue to strengthen our presence in the travel sector, through our ongoing relationships with train operators including Avanti and Great Western Railway, which continue to provide valuable routes to market. We have also started to expand into new areas of supply, including a presence across sports stadiums and events/ festivals across the UK, where we see considerable room for further growth.

Corporate gifting remains an important element of the channel, alongside the business incentives market, while relationships with partners including Virgin Red and Amazon provide further opportunities to reach customers through incremental channels.

We are excited about the pipeline of opportunities available to us, both through expanding existing partnerships and establishing relationships in new areas.

3. Technology and customer engagement

Technology is increasingly central to how we acquire, engage and retain our customers.

We successfully delivered our mobile app on time and on budget during FY26. Early performance has been encouraging, with the app outperforming our mobile website across key measures including average order value, browse time on site, engagement rate, visits per week and order frequency. Our focus in FY27 will be on building scale and increasing adoption.

The launch of our app is complemented by a broader investment in our technology and data capabilities, helping us better understand customer preferences and deliver more personalised, relevant communications. Over time, we expect this to strengthen engagement and retention while making customer acquisition increasingly effective.

4. Warehouse Wines

In its second full year of trading, Warehouse Wines has continued its excellent progress and remains an exciting growth opportunity for the Group. Revenue increased by 92% year-on-year to £3.45m, with 28,000 new customers acquired during the year.

Warehouse Wines was created to address a significant segment of the market looking for great quality wine at highly competitive price points. Our existing sourcing expertise, infrastructure, fulfilment network and technology mean we can operate the proposition efficiently while offering customers outstanding value.

The performance to date gives us confidence that Warehouse Wines is resonating strongly with its target customer. We remain optimistic about its continued growth and its potential to become an increasingly meaningful contributor to Group revenue and profitability.

Operational excellence

Operational efficiency has always been an important characteristic of Virgin Wines, and our ambition remains to continue being the lowest cost to serve operator in the sector.

Despite significant increases in wages, fuel, packaging and other operating costs, variable operational cost per case increased by just 2% during FY26, demonstrating the continued focus across our warehouse and Customer Service teams on productivity and cost discipline.

We have continued to invest in and enhance our warehouse management technology, improving integration between our systems and creating further opportunities to improve productivity, accuracy and fulfilment.

Crucially, our focus on efficiency has been achieved without compromising customer experience. Delivering exceptional levels of customer service remains our number one operational priority.

Towards the end of the year, we agreed a lease for a new warehouse facility in Preston. The new site will enable us to consolidate our existing Preston and Bolton fulfilment operations into a single facility, removing inter-site transport requirements and delivering meaningful synergies, economies of scale and structural operational benefits from FY28 onwards. The build and fit-out will take place during FY27, with the Bolton site expected to close by the end of February 2027.

Our open-source wine buying model

Our flexible open-source buying model remains one of Virgin Wines' key competitive advantages and is especially important in an environment where both consumers and our business face significant cost pressures.

Rather than being tied to particular vineyards or regions, our buying team works with a wide network of trusted winemaking partners around the world. This gives us the flexibility to adapt our sourcing according to changes in quality, cost and availability and focus volumes on the areas delivering the most attractive quality to value ratios for our customers.

We also work closely with our winemaking partners on blending and alcohol levels where appropriate, without compromising the stylistic integrity or quality of the product, while increasing the amount of wine shipped in bulk and bottled in the UK.

This flexibility has helped us mitigate some of the increased costs facing the industry and minimise price rises for our customers. During the year, we also utilised our strong cash position to prepay duty ahead of the latest increase in February, protecting both pricing and margin.

Maintaining relatively low inventory levels remains important to this model, with the business holding approximately 12–14 weeks of stock at any given point. This allows us to respond quickly to changes in the market, ensure cash committed to working capital is low, whilst maintaining a largely exclusive range of wines that continue to be highly rated by our customers.

Sustainability

Sustainability remains an important part of how we operate and how we think about the long-term development of Virgin Wines. We continue to focus on practical changes across our value chain that reduce our environmental impact while also strengthening the resilience and efficiency of the business.

We are now in our second year of reporting greenhouse gas emissions, with our carbon footprint independently verified against the international standard. Having moved away from carbon offsetting, we are directing resources towards insetting and measures that can deliver genuine reductions across our value chain.

During the year, emissions from gas and electricity use were 41.13% lower than FY22, reflecting continued energy efficiency and operational improvements. We also increased the proportion of wines shipped in bulk to 49%, compared with 46% in FY25 and 28% at our FY22 starting point.

We were delighted that our buying team was recognised for its work by being named Sustainable Drinks Buying Team of the Year at the Drinks Buyers Awards 2026.

We remain committed to our emissions reduction ambitions and will continue increasing the proportion of wine shipped in bulk where appropriate. Our move to the new consolidated warehouse in Preston, which will include solar panels, also provides another opportunity to improve the efficiency and environmental performance of our operations.

Our people, culture and values

Our people remain fundamental to Virgin Wines and the culture we have built. Our 25th anniversary celebrations provided an opportunity to recognise both the journey of the business and the contribution made by colleagues, many of whom have been with the company for a substantial part of that journey.

The loyalty and experience within our team is an important strength, while new colleagues bring fresh thinking. Together, this combination creates the energy, enthusiasm and entrepreneurial approach that we believe sets us apart.

Our latest employee engagement survey achieved an 85% participation rate and we were pleased to be recognised by Best Employers Eastern Region for “Most Improved Scores”.

We continue to bring the Virgin Wines brand to life through consumer events, providing opportunities for customers to meet members of the team and experience our wines first-hand. These interactions are an important reminder that the relationships we build with customers extend well beyond an online transaction.

We are committed to creating a positive, supportive and inclusive working environment where people can develop and thrive. We also continue to promote responsible drinking through our communications with both employees and customers.

Capital allocation

Our strong, debt-free balance sheet provides us with the flexibility to continue investing in the long-term growth of Virgin Wines.

Having now reached the current limit of the share buybacks available to us, our priority is now to deploy capital behind the organic growth opportunities where we see the strongest potential returns.

This includes continued investment in customer acquisition and Warehouse Wines, our website and technology platforms, as well as technology that will allow us to deliver more personalised marketing at scale. The move to our new National Distribution Centre in Preston represents another significant area of investment in FY27 as we build an operational infrastructure capable of supporting our medium-term ambitions.

We will continue to assess M&A opportunities where appropriate but believe that investing in the growth opportunities within the existing business currently provides the clearest route to creating long-term shareholder value. The Board continues to periodically review the possibility of introducing a dividend policy.

Outlook

Following the encouraging progress made over FY26 by focusing on the key pillars of our growth strategy, we enter our new financial year with real momentum.

Trading conditions continue to be challenging and IMRG have consistently reported significant monthly declines in revenue through the online drinks sector over recent months. Despite this, Virgin Wines continues to grow and take market share by delivering revenue growth of 4.5% year-on-year during the first quarter of our new financial year.

We have doubled down on our growth strategy, with the number of new customers acquired across the Group continuing to grow whilst our cost per acquisition has declined from Q1 FY25, showing the excellent cost discipline embedded in the company culture. Revenue through our Commercial channel has been particularly encouraging with double digit growth through Q1 FY27, as well as substantial progress made in opening new long-term opportunities that will deliver continued growth.

Our investment in technology continues, particularly where it allows our marketing to be more personalised, relevant and targeted. Over recent months we have implemented Bloomreach, a market leading customer data platform, that will assist greatly in our ability to understand customers' propensity to purchase, as well as segment and target our push marketing more appropriately. In addition, over the second half of this financial year we will be implementing HubSpot, which will be of significant benefit to our Commercial, Customer Acquisition, Wine Advisor and Customer Service teams.

Warehouse Wines continues its growth trajectory with increased numbers of customers acquired, higher levels of converted customers, and repeat sales growth of 113% showcasing the loyalty and positive ongoing purchase behaviour of the customer base.

As we move into Q2 the development of our new National Distribution Centre is particularly significant given the operational benefits and efficiencies this will deliver from FY28 onwards. The aim is to have exited our Bolton warehouse by the end of February and to have 100% of our fulfilment operating out of the new site by the end of this financial year.

Whilst we acknowledge the many headwinds the sector is dealing with, including the subdued consumer climate, cost of living pressures, unprecedented increases in alcohol duty, the introduction of Extended Producer Responsibility costs, increased wage inflation and National Insurance contributions, the business continues to do all in its power to mitigate these costs.

We also understand that increased scale will allow our business to thrive in a climate where the overall sector is in decline. Our strategy is clear that we believe Virgin Wines is uniquely positioned to capitalise on the significant opportunity the online drinks sector still has for the outstanding businesses to grow over the coming years.

We will achieve this through the following:

	Outstanding loyalty of our existing customer base
	Low cost of new customer acquisition
	Extreme rigour and cost discipline across our business
	Investment in operational efficiencies, maintaining our position as the lowest cost to serve
	Significantly growing the Commercial channel
	Continued growth of Warehouse Wines
	The use of technology to ensure our marketing is increasingly personalised and targeted

I’d like to finish by once again thanking the exceptional team I have the pleasure of working with every day. The talent, commitment, dedication and enthusiasm shown by our people is something I never take for granted, and I am hugely grateful to every one of them for the passion and energy consistently shown.

Jay Wright

Chief Executive Officer

Financial review

The increase in revenue from £59m to £61m provides encouraging early evidence that our growth strategy is beginning to deliver results. At the same time, we remain firmly committed to cost control and operational efficiency, ensuring that growth is achieved in a disciplined and sustainable manner.

	FY26 £m	FY25 £m
Revenue	61.0	59.0
Gross profit	17.2	17.8
Operating expenses	(17.4)	(15.5)
Adjusted EBITDA¹	(0.2)	2.3
Share-based payments	(0.1)	0.0
Amortisation and depreciation	(1.5)	(1.3)
Operating (loss)/profit	(1.7)	1.0
Finance income	0.4	0.7
Finance expense	(0.1)	(0.1)
(Loss)/profit before tax	(1.5)	1.6
Tax	0.5	(0.3)
(Loss)/profit for period	(1.0)	1.3

Financial Summary

In the first full year following the launch of the Group's growth strategy, we delivered encouraging progress across each of our four strategic growth pillars.

	Customer recruitment increased by 41% year-on-year, illustrating the effectiveness of the Group’s customer acquisition initiatives. Payback on newly acquired customers is achieved in under two years, reinforcing the Group's confidence in the returns generated from its investment in customer growth.
	Commercial revenue grew from £8.9m to £9.4m in FY26. Performance benefited from acquisition of new commercial customers and increased activity from existing customers, driving revenue growth despite continued challenges in the trading environment.
	Warehouse Wines revenue increased by 92% year-on-year to £3.5m. The business is now expected to become profit-generative in FY27, one year ahead of the original five-year plan.
	The Group successfully launched its customer app, receiving more than 15,000 downloads in FY26. The app enhances customer engagement by providing a more convenient and personalised shopping experience, while creating a direct channel that enables targeted marketing and provides valuable customer insights.

These initiatives contributed to Group revenue increasing from £59.0m in the 52-week FY25 to £61.0m in the 53-week FY26, demonstrating the early success of the strategy and establishing a platform for future growth.

KPIs

Membership of our award-winning WineBank scheme grew 2.8% in the year with revenue from WineBank customers up 4.3% year-on-year.

Back-end sales retention improved from 88% to 92% and customer retention increased from 83% to 86%, reflecting the strong loyalty of our customer base.

Gross margin

The reduction in gross margin from 30.1% to 28.3% reflected a change in sales mix with a higher proportion of lower-margin customer acquisition sales. Margin was also impacted by cost pressures arising from duty increases, the first full year of Extended Producer Responsibility (EPR) charges and inflationary pressures, including higher energy prices which increased transportation and packaging costs.

EBITDA

Consistent with the Group's strategic focus on accelerating growth, £2.7m was invested in customer acquisition during the year. As a result, adjusted EBITDA decreased from £2.3m to a loss of £0.2m as the Group prioritised investment in expanding its customer base to drive future earnings potential.

The Group continued to exercise strong cost management, with fulfilment costs per case increasing by only 2% despite a challenging inflationary environment.

Amortisation and depreciation

The business continues to invest in IT development where there is a clear business case to enhance operational performance or strengthen our consumer proposition.

Amortisation and depreciation increased by £0.2m during the year, primarily reflecting higher right-of-use asset depreciation following rent reviews across the Group's warehousing facilities. Following the reviews, the Group has exercised the break option on its Bolton facility and will relocate to a new warehouse in FY27. The move is expected to deliver operational efficiencies through the consolidation of fulfilment operations while creating capacity for future growth.

Cash and working capital

The Group has no borrowing and continues to maintain a strong balance sheet and disciplined approach to working capital management.

During the year, £5.3m of surplus cash was utilised to prepay excise duty ahead of the duty rate increase implemented in February 2026. This proactive measure mitigated the impact of higher duty costs on margins, with £0.9m of prepaid duty remaining on the balance sheet at the year end.

Gross cash as at 3 July 2026 was £14.7m (2025: £17.6m). Group cash net of WineBank customer deposits was £5.8m (2025: £9.3m). The reduction was driven primarily by £2.4m returned to shareholders through the share buyback programme, alongside investment in customer acquisition initiatives and the development and launch of the Group's customer app.

The Group remains focused on maintaining appropriate inventory levels to support growth while ensuring efficient use of working capital. Inventory remained well controlled at £6.9m compared to £7.2m in the prior year.

Capital allocation

The Group's capital allocation framework is focused on delivering long-term shareholder value through targeted investment in organic growth opportunities while maintaining a strong financial position.

Investment in both operational expenditure and capital expenditure remains the primary use of capital, facilitating the execution of the Group's growth strategy and strengthening the platform for future expansion.

During the year, the Company returned £2.4m to shareholders through the repurchase of 4,262,563 of its own shares. In aggregate, since the commencement of the buyback programme, the Company has repurchased 15% of its issued share capital, the maximum number of shares permitted under the Rule 9 waiver. A total of 726,325 shares were cancelled during the year, and 7,669,536 shares were held in treasury at the year end.

The Board continues to evaluate selective acquisition opportunities

Key performance measures

	Revenue	Adjusted EBITDA1	Reported gross margin
FY26	£61m	-£0.2m	28.3%
FY25	£59m	£2.3m	30.1%
	Gross cash	Net2 cash
FY26	£14.7m	£5.8m
FY25	£17.6m	£9.3m

1 Adjusted EBITDA is before share-based payments

2 Net cash excludes WineBank customer deposits and other initiatives that may enhance shareholder value. However, the Group's primary focus remains on delivering sustainable organic growth.

The Group does not currently propose the payment of a dividend. The Board will continue to review its dividend policy regularly, balancing future capital requirements, growth opportunities and shareholder returns.

Impairment review

In accordance with IAS 36 Impairment of Assets, the Directors performed an annual impairment assessment of goodwill at the reporting date.

The carrying value of the Group's cash-generating unit was compared with its estimated value in use, based on discounted future cash flow projections. The review concluded that no impairment charge was required during the year. Further details are provided in Note 14 to the financial statements.

Outlook

Trading since the year end has been in line with the Board's expectations.

Despite ongoing challenges in the consumer environment, the Group is encouraged by the momentum generated by the growth strategy. The Board remains confident that the Group's differentiated proposition, loyal customer base and effective execution position the business to deliver sustainable growth and long-term shareholder value.

Consolidated statement of comprehensive income

for the 53-week period ended 3 July 2026

Note	Note	53-weeks to 3 July 2026 £’000	52-weeks to 27 June 2025 £’000
Revenue	5	61,012	59,021
Cost of sales		(43,774)	(41,240)
Gross profit		17,238	17,781
Administrative expenses		(5,931)	(5,940)
Selling and distribution costs		(13,033)	(10,845)
Operating (loss)/profit	6	(1,726)	996
Finance income	10	361	725
Finance costs	11	(132)	(129)
(Loss)/profit before taxation		(1,497)	1,592
Taxation credit/(expense)	12	467	(290)
(Loss)/profit for the financial period and total comprehensive income		(1,030)	1,302
Basic earnings per share (pence)	13	(2.1)	2.4
Diluted earnings per share (pence)	13	(2.1)	2.3

The results for the periods shown above are derived entirely from continuing activities.

The Group has no other comprehensive income or expense other than the profit above and therefore no separate statement of other comprehensive income has been presented.

Consolidated statement of financial position

as at 3 July 2026

Company number 13169238	Note	3 July 2026 £’000	27 June 2025 £’000
ASSETS
Non-current assets
Intangible assets	14	12,305	11,357
Property, plant and equipment	15	167	110
Right of use assets	16	1,150	1,877
Deferred tax asset	17	456	–
Total non-current assets		14,078	13,344
Current assets
Inventories	18	6,850	7,153
Trade and other receivables	19	2,624	3,041
Cash and cash equivalents	20	14,707	17,579
Total current assets		24,181	27,773
Total assets		38,259	41,117
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables	21	(17,125)	(15,874)
Derivative financial instruments	23	(16)	(6)
Lease liability	16	(413)	(554)
Total current liabilities		(17,554)	(16,434)
Non-current liabilities
Provisions	22	(501)	(413)
Lease liability	16	(915)	(1,639)
Deferred tax liability	17	–	(11)
Total non-current liabilities		(1,416)	(2,063)
Total liabilities		(18,970)	(18,497)
Net assets		19,289	22,620
Equity
Share capital	24	553	560
Share premium		11,989	11,989
Own share reserve		(77)	(43)
Merger reserve		65	65
Share-based payment reserve		276	294
Retained earnings		6,483	9,755
Total equity		19,289	22,620

The financial statements were approved by the Board of Directors and authorised for issue on 20 October 2026. They were signed on their behalf by:

Amanda Cherry

Chief Financial Officer

The notes form part of these financial statements.

Consolidated statement of changes in equity

for the 53-week period ended 3 July 2026

	Share capital	Share premium	Own share reserve	Merger reserve	Share-based payment reserve	Retained earnings	Total Shareholders’ funds
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
28 June 2024	560	11,989	(3)	65	552	10,157	23,320
Loss for the financial period	–	–	–	–	–	1,302	1,302
Total comprehensive income for the period	–	–	–	–	–	1,302	1,302
Share-based payments (note 9)	–	–	–	–	(35)	–	(35)
Shares issued on exercise of share based payment	–	–	1	–	(223)	223	1
Own shares distributed	–	–	(41)	–	–	(1,927)	(1,968)
Total transactions with owners recognised in equity	–	–	(40)	–	(258)	(1,704)	(2,002)
27 June 2025	560	11,989	(43)	65	294	9,755	22,620
28 June 2025	560	11,989	(43)	65	294	9,755	22,620
Loss for the financial period	–	–	–	–	–	(1,030)	(1,030)
Total comprehensive income for the period	–	–	–	–	–	(1,030)	(1,030)
Share-based payments (note 9)	–	–	–	–	68	–	68
Shares issued on exercise of share based payment	–	–	2	–	(86)	86	2
Shares repurchased, held in treasury (note 24)	–	–	(43)	–	–	(2,328)	(2,371)
Cancellation of shares	(7)	–	7	–	–	–	–
Total transactions with owners recognised in equity	(7)	–	(34)	–	(18)	(2,242)	(2,301)
3 July 2026	553	11,989	(77)	65	276	6,483	19,289

The notes form part of these financial statements.

Consolidated statement of cash flows

for the 53-week period ended 3 July 2026

Note	Note	3 July 2026 £’000	27 June 2025 £’000
Cash flows from operating activities
(Loss)/profit before taxation		(1,497)	1,592
Adjustments for:
Depreciation and amortisation	6	1,493	1,298
Share-based payment (credit)/expense	9	68	(35)
Net finance income	10, 11	(229)	(596)
Decrease/(increase) in trade and other receivables		417	(356)
Decrease/(increase) in inventories		302	(1,285)
Increase in trade and other payables		1,405	1,412
Corporation tax paid		(60)	–
Net cash generated from operating activities		1,899	2,030
Cash flows from investing activities
Interest received	10	361	725
Purchase of intangible and tangible fixed assets	14, 15	(1,767)	(911)
Net cash used in investing activities		(1,406)	(186)
Cash flows from financing activities
Payment of lease liabilities	16	(864)	(539)
Payment of lease interest	11, 16	(128)	(129)
Payment of other interest		(4)	–
Issue of treasury shares		2	1
Purchase of own shares	24	(2,371)	(1,968)
Net cash used in financing activities		(3,365)	(2,635)
Net decrease in cash and cash equivalents		(2,872)	(791)
Cash and cash equivalents at beginning of period		17,579	18,370
Cash and cash equivalents at end of period		14,707	17,579
Cash and cash equivalents comprise: Cash at bank and in hand		14,707	17,579

The notes form part of these financial statements.

Notes forming part of the financial statements

for the 53-week period ended 3 July 2026

1. General information

The principal activity of the Group is import and distribution of wine.

The Company was incorporated on 1 February 2021 in the United Kingdom and is a public company limited by shares registered in England and Wales. The registered office is 37-41 Roman Way Industrial Estate, Longridge Road, Ribbleton, Preston, Lancashire, United Kingdom, PR2 5BD. The registered company number is 13169238.

2. Accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the Group consisting of Virgin Wines UK plc and its subsidiaries.

Basis of preparation

The Group's financial statements have been prepared in accordance with UK-adopted International Accounting Standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under these standards. The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these Group financial statements.

The financial information set out in this announcement does not constitute the Group's financial statements for the period ended 03 July 2026 as defined by Section 434 of the Companies Act. This financial information should be read in conjunction with the financial statements of the Group for the period ended 27 June 2025 (the "Prior year financial statements"), which are available from the Registrar of Companies. The Prior year financial statements were prepared in accordance with UK adopted international accounting standards and the applicable legal requirements of the Companies Act 2006. The auditors, Azets Audit Services, reported on those accounts and their report was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498 (2) or (3) of the Companies Act 2006.

Accounting reference date

UK company law permits a company to draw up financial statements to a date seven days either side of its accounting reference date. For operational reasons the Company has adopted an accounting period of 53 weeks, and as a result of this, the exact year-end was 3 July 2026 (2025: 52 weeks to 27 June 2025).

Historical cost convention

The financial statements have been prepared on a historical cost basis except for certain financial assets and liabilities (including derivative instruments), measured at fair value through the income statement.

New and revised IFRS Accounting Standards in issue but not yet effective

At the date of authorisation of these financial statements, the Group has not applied the following new and revised IFRSs that have been issued but are not yet effective.

The Directors do not expect that the adoption of the Standards listed above will have a material impact on the financial statements of the Group in future periods.

Effective Date	IFRS
1 January 2027	IFRS 18 - Presentation and Disclosures in Financial Statements
1 January 2027	IFRS 19 - Subsidiaries without Public Accountability: Disclosures
1 January 2026	Amendments to IFRS 9 and IFRS 7 - Classification and measurement of financial instruments
1 January 2026	Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity
1 January 2026	Electricity Annual Improvements to IFRS Accounting Standards — Volume 11 Amendments to IFRS 1 - First-time Adoption of International Financial Reporting Standards IFRS 7 - Financial Instruments Disclosures and its accompanying Guidance on implementation IFRS 9 - Financial Instruments IFRS 10 - Consolidated Financial Statements IAS 7 - Statement of Cash Flows

Going concern

The Group's business activities, together with the factors likely to affect its future development, performance and position, are set out in the Strategic Report and the Directors' Report, which also describe the financial position of the Group. The Group's financial risk management objectives and its exposure to credit risk and liquidity risk are set out in note 23.

During the period the Group met its day-to-day working capital requirements through cash generated from operating activities. The Group's forecasts and projections, taking account of a severe but plausible change in trading performance, show that the Group should be able to operate using cash generated from operations, and that no additional borrowing facilities will be required.

Having assessed the principal risks, the Directors considered it appropriate to adopt the going concern basis of accounting in preparing its consolidated financial statements.

Climate change

The Group recognises the risks of climate change. The Group’s current climate change strategy focuses on reducing its carbon footprint through independent verification under ISO 14064-1 and sustainability initiatives to reduce greenhouse emissions. The impact of climate change has been considered in the preparation of these financial statements, including the risks identified as part of the Principal Risks and Uncertainties disclosures. None of these risks had a material effect on the consolidated financial statements of the Group. In particular, the Directors have considered the impact of climate change in respect of the following areas:

• Going concern and viability of the Group over the next three years;
• Carrying value and useful economic lives of property, plant and equipment; and
• The discounted cash flows included in the value in use calculation used in the annual goodwill impairment testing.

Whilst there is currently no material impact expected from climate change, the Group is aware of the ever-changing risks related to climate change and will continue to develop its assessment of the impact on the financial statements.

Basis of consolidation

The financial statements consolidate the financial information of the Group and companies controlled by the Group (its subsidiaries) at each reporting date.

Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity, has the rights to variable returns from its involvement with the investee and has the ability to use its power to affect its returns. The results of subsidiaries acquired or sold are included in the financial information from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the results of acquired subsidiaries to bring their accounting policies into line with those used by the Group.

All intra-Group transactions, balances, income and expenses are eliminated on consolidation.

The financial statements of all Group companies are adjusted, where necessary, to ensure the use of consistent accounting policies.

Revenue recognition

Revenue from contracts with customers contains one performance obligation, unless it is a WineBank sale, in which case there are two performance obligations and this is described separately below. The single performance obligation is the supply of goods. The transaction price is fully allocated to the single performance obligation for non-WineBank sales. The Group recognises revenue at a point in time when the single performance obligation is satisfied. The performance obligation is satisfied when control is passed to the customer. Control is deemed to pass to the customer upon delivery of the goods.

Revenue is recognised at the transaction price of the sale of goods, net of discounts and excluding value added tax, in the ordinary course of business.

The Group uses its accumulated historical experience to estimate the level of returns on a portfolio level using the expected value method. Credit terms are only provided to corporate customers, and the average credit period is 60 days.

WineBank

Amounts deposited by customers for WineBank are initially reported as a contract liability in the Statement of Financial Position. On registering as a WineBank customer, subscription customers agree to lodge a regular monthly sum into their WineBank account. These sums accumulate in the customer account and build a balance to use against their next purchase from the Group.

Amounts deposited by WineBank customers are reported within the Group cash balance but are held separate to Group funds. WineBank deposits are not used to fund the working capital of the business. WineBank customers can cancel their WineBank account at any time and may request to receive their money back immediately with no penalty whatsoever.

Using funds deposited through the WineBank scheme entitles account holders to benefit from an extra discount on the Group's website prices. This discount represents a 'material right' under IFRS 15 Revenue from Contracts with Customers when customers spend their WineBank cash balance but not the associated interest. The material right performance obligation is calculated on a portfolio basis taking into account inactive customers and expected future cash receipts which reduce the portfolio value of the material right. The material right provision is included within contract liabilities and deferred until the customer uses the discount on a future order.

Orders placed through the WineBank scheme also contain the same performance obligation as for other sales, as described above. The transaction price allocated to this performance obligation is the remaining amount after allocating the element to the material right, and is recognised upon delivery to the customer.

Finance costs

Finance costs on financial liabilities are recognised in the profit and loss account over the term of such instruments at a constant rate on the carrying amount. Issue costs relating to financial instruments are recognised in the income statement over the term of the debt at a constant rate over the instrument's life.

Interest on leases is calculated based on the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Group, the lessee's incremental borrowing rate is used (see lease accounting policy).

Taxation

Tax on the profit or loss for the year comprises current and deferred tax.

Tax is recognised in the Consolidated Statement of Comprehensive Income except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates and laws enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of goodwill, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.

The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates and laws enacted or substantively enacted at the reporting date. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised.

The carrying amounts of deferred tax assets are reviewed at each reporting date.

Foreign currencies

Functional and presentational currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The functional currency of the Group is GBP. The financial statements have been rounded to thousands.

Transactions and balances

Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at quoted rates of exchange ruling at the balance sheet date. Exchange profits and losses arising from current trading are included in operating profit.

Goodwill

Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired is capitalised.

The goodwill in the consolidated financial statements represents the goodwill recognised in the predecessor holding company financial statements at the original carrying value.

Goodwill is not amortised but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or groups of cash-generating units) expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period.

Intangible assets

Computer software is stated at cost less accumulated amortisation and impairment losses. Software is amortised over its estimated useful life, of between five and eight years, on a straight line basis.

Included within intangible assets are capitalised internal development costs, which are calculated based on the salary costs of employees who have directly attributable time to internal development projects.

Where factors, such as technological advancement or changes in market prices, indicate that residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances.

Property, plant and equipment

Property, plant and equipment are stated at historic purchase cost less accumulated depreciation and impairment losses. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

• Leasehold property - over the life of the lease
• Fixtures and fittings - 33.33% per annum
• Computer hardware and warehouse equipment - 33.33% per annum

Assets classified as ‘work in progress’ are not depreciated as such assets are not currently available for (or in) use. Once in use, assets will be re-categorised and depreciated at the rate appropriate to their classification.

The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the net sale proceeds and the carrying amount of the asset and is recognised in the Statement of Comprehensive Income.

Impairment of non-financial assets (excluding goodwill)

At each reporting date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in comprehensive income.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss to the extent that it eliminates the impairment loss which has been recognised for the asset in prior years.

Leases

A contract, or a portion of a contract, is accounted as a lease when it conveys the right to use an asset for a period of time in exchange for consideration. Leases are those contracts that satisfy the following criteria:

• There is an identified asset;
• The Group obtains substantially all the economic benefits from use of the asset; and
• The Group has the right to direct use of the asset.

The Group considers whether the supplier has substantive substitution rights. If the supplier does have those rights, the contract is not identified as giving rise to a lease. In determining whether the Group obtains substantially all the economic benefits from use of the asset, the Group considers only the economic benefits that arise from use of the asset. In determining whether the Group has the right to direct use of the asset, the Group considers whether it directs how and for what purpose the asset is used throughout the period of use. If the contract or portion of a contract does not satisfy these criteria, the Group applies other applicable IFRS rather than IFRS 16.

The group leases various offices, warehouses and equipment. Rental contracts are typically made for fixed periods of 5 to 10 years.

Contracts may contain both lease and non-lease components. The group allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices.

Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

• fixed payments (including in-substance fixed payments), less any lease incentives receivable;
• variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the commencement date;
• amounts expected to be payable by the Group under residual value guarantees;
• the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and
• payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Group, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

To determine the incremental borrowing rate, the Group:

• where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect changes in financing conditions since third-party financing was received;
• uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by Virgin Wines UK plc, which does not have recent third-party financing; and
• makes adjustments specific to the lease, for example term and security.

If a readily observable amortising loan rate is available to the individual lessee (through recent financing or market data) which has a similar payment profile to the lease, then the group entities use that rate as a starting point to determine the incremental borrowing rate.

The group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

The Group has elected not to recognise right of use assets and lease liabilities for leases of low-value assets and short-term leases. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

Inventory

Inventories are valued at the lower of cost and net realisable value on a FIFO basis. Cost comprises purchase price plus associated freight and duty costs for imported goods. Inventories are regularly assessed for evidence of impairment. Where such evidence is identified, a provision is recognised to reduce the value of inventories to its selling price after incurring any future costs to sell.

Cash and cash equivalents

Cash and cash equivalents include cash on hand and with banks, as well as any deposits made with financial institutions with a maturity period of less than three months from the date of deposit. Cash and cash equivalents also includes amounts received from WineBank customers which are not restricted and as such are presented as cash and cash equivalents.

Financial instruments

Recognition, initial measurement and derecognition

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted by transaction costs, except for those carried at fair value through profit or loss which are measured initially at fair value. Subsequent measurement of financial assets and financial liabilities are described below.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.

Classification and subsequent measurement of financial assets

For the purpose of subsequent measurement, financial assets are classified into the following categories upon initial recognition:

• financial assets at amortised cost; and
• financial assets/liabilities held at fair value through profit or loss (FVTPL).

Financial assets at amortised cost

Financial assets at amortised cost are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.

After initial recognition, these are measured at amortised cost using the effective interest method, less provision for impairment. Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments.

The Group recognises a loss allowance for expected credit losses (ECL) on financial assets that are measured at amortised cost. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.

The Group always recognises lifetime ECL on trade receivables. The expected credit losses on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate.

All income and expenses relating to financial assets that are recognised in the Consolidated Statement of Comprehensive Income are presented within finance costs or finance income, except for impairment of trade receivables which is presented within other administrative expenses.

Classification and subsequent measurement of financial liabilities

The Group’s financial liabilities include trade and other payables and accruals, loans and borrowings and derivative financial instruments.

Financial liabilities are measured at amortised cost using the effective interest method, except for financial liabilities held for trading or designated at FVTPL, that are carried at fair value with gains or losses recognised in the Consolidated Statement of Comprehensive Income.

All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in the Consolidated Statement of Comprehensive Income are included within finance costs or finance income.

Derivative financial liabilities

Derivatives are initially recognised at fair value at the date a derivative is entered into and are subsequently remeasured to their fair value at each reporting date. A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a negative fair value is recognised as a financial liability. The resulting gain or loss is recognised in the Consolidated Statement of Comprehensive Income immediately. A derivative is presented as a non-current asset or non-current liability if the Group has an unconditional right to defer payment beyond 12 months. Otherwise derivatives are presented as current assets or liabilities.

Provisions

Provisions are recognised when the Group has a legal or constructive present obligation in relation to dilapidation costs on exit of leased properties where it is probable that the Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

Employee benefits

The Group provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and defined contribution pension plans.

(i) Short-term benefits

Short-term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

(ii) Defined contribution pension plans

The Group operates a number of defined contribution plans for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

(iii) Share-based payments

A transaction is accounted for as a share-based payment where the Group receives services from employees, Directors or third parties and pays for these in shares or similar equity instruments.

The Group makes equity-settled share-based payments to certain employees and Directors. Equity-settled share-based schemes are measured at fair value (excluding the effect of non-market-based vesting conditions) at the date of grant, measured by use of an appropriate valuation model. The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the period services are received, based on the Group’s estimate of shares that will eventually vest. Share options are forfeited when an employee ceases to be employed by the Group unless determined to be a ‘Good Leaver’. A ‘Good Leaver’ is a participant who ceases employment by reason of death, retirement, injury, ill-health or disability.

The Group has discretion to recover the employer’s National Insurance liability from the employee. For the current active schemes the Company has chosen to do so.

Merger reserve

The merger reserve was created as a result of the share-for-share exchange under which Virgin Wines UK plc became the parent undertaking prior to the IPO. Under merger accounting principles, the assets and liabilities of the subsidiaries were consolidated at book value in the Group Financial Statements and the consolidated reserves of the Group were adjusted to reflect the statutory share capital, share premium and other reserves of the Company as if it had always existed, with the difference presented as the merger reserve.

Retained earnings

Retained earnings includes all current and prior period retained profits and losses. All transactions with owners of the parent are recorded separately within equity.

Dividends are recognised when approved by the Group’s shareholders or, in the case of interim dividends, when the dividend has been paid.

Section 479c Companies Act 2006 audit exemption

The subsidiaries Virgin Wine Online Limited (registered number 03800762) and Virgin Wines Holding Company Limited (registered number 07970057) are exempt from the requirements of the Act relating to the audit of accounts under section 479a of the Companies Act 2006.

3. Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these Financial Statements, the Directors have made the following key judgements and estimates:

Goodwill impairment assessment (note 14)

At each reporting date, the Group tests goodwill for impairment in accordance with the requirements of IAS 36. The recoverable amount of the Group's single cash-generating unit (CGU) is determined by calculating its value in use. The value in use calculation requires the Group to estimate the future cash flows expected to arise from the single CGU and to use a suitable discount rate in order to calculate their present value. The value in use is then compared to the total of the relevant assets and liabilities of the CGU. See note 14 for details of the test for impairment and the relevant key assumptions.

Assessment of carrying values of plc company investments and amounts due from Group undertakings

In relation to the plc company's investments in subsidiaries, the Directors are required to assess whether there are any indicators of impairment at each reporting date. All relevant potential indicators are considered, including the performance of the underlying trading subsidiary and the results of the Group’s impairment assessment performed as at the same date as described above. The Directors exercise their judgement in determining whether any such indicators exist. Where an indicator of impairment is identified in relation to the company’s investments or intercompany receivable balances, a full impairment review is performed. The Directors performed their assessment and concluded that no impairment indicators existed at 3 July 2026 and, as such, a full impairment review over the company’s investments in subsidiaries and intercompany receivables was not performed.

In relation to the amounts due from Group undertakings, the Directors are required to assess their carrying amount for any impairment using the expected credit losses (ECL) model. As set out in note 6 to the company financial statements, the amounts owed by Group undertakings are unsecured, interest free and repayable on demand. Consistent with the ECL model, the Directors have assessed the carrying amount for impairment on the assumption that repayment of the amounts were demanded at the reporting date. The Directors, having determined that the borrower had insufficient highly liquid resources at the reporting date, considered the expected manner of recovery and recovery period of these loans (the company’s ‘recovery scenarios’). The Directors determined that the only non-trivial recovery scenario would be realised by way of a dividend distribution by the Group's trading subsidiary, Virgin Wine Online Limited. The Directors, amongst other factors, considered the ability and intent of the subsidiary to make such a distribution if required, and ultimately determined that any reduction in the carrying amount of these receivables would be inconsequential to the company's financial statements. On that basis, no ECL provision has been recognised.

Sources of estimation uncertainty

The Group has recognised a provision in respect of potential dilapidation costs arising from the exercise of a break clause in relation to a property lease. The provision represents management’s best estimate of the costs that may be incurred to satisfy the Group’s obligations under the lease and is based on the information available at the reporting date, including property assessments and estimates of the work required.

There is estimation uncertainty in determining the final amount of the provision, as the actual costs will depend on the condition of the property at the date of handover, the extent of remedial works required and the outcome of discussions with the landlord. The provision will be reviewed and updated as further information becomes available.

The Group has considered other estimates and assumptions that, whilst not deemed to represent a significant risk of material adjustment, do represent important estimates at 3 July 2026 and are disclosed accordingly. The valuation of the material right provision is disclosed as another estimate in the current year.

4. Segmental reporting

IFRS 8 requires operating segments to be determined based on the Group's internal reporting to the Chief Operating Decision Maker (CODM). The CODM has been determined to be the Board as it is primarily responsible for the allocation of resources to segments and the assessment of performance of the segments.

The level of aggregation of results reported to and assessed by the CODM supports that there are not operating segments smaller than the business as a whole, there is only one operating segment, which comprises all of the operations of the Group. Performance of this operating segment is assessed on revenue and Adjusted EBITDA (being operating profit excluding share-based payments and any exceptional items, see the Financial review table). These are the financial performance measures that are reported to the CODM, along with other operational performance measures, and are considered to be useful measures of the underlying trading performance of the segment. Adjusted items are not allocated to the operating segment as this reflects how they are reported to the Board.

5. Revenue

The Directors have considered the requirement of IFRS 15 with regards to disaggregation of revenue and do not consider this to be required as the Group has only one operating segment which is the sale of alcohol.

There is one geographical market being the UK, all revenue streams having similar recognition policies and whilst the Group provides services, Management do not believe such analysis would provide meaningful information for users of the financial statements.

There were no major customers that individually accounted for more than 10% of total revenues (2025: no customers).

6. Operating profit

Operating profit is stated after charging/(crediting):

	3 July 2026 £’000	27 June 2025 £’000
Inventory charged to cost of sales	40,277	38,137
Depreciation (note 15)	150	171
Depreciation of right of use asset (note 16)	730	493
Staff costs (note 7)	8,718	7,881
Share-based payments (note 9)	68	(35)
Net exchange gains (including movements on fair value through profit and loss derivatives)	29	(33)
Movement in inventory provision	209	(17)
Intangible asset amortisation (note 14)	613	634
Low value and short-term rentals excluded from right of use asset	58	70
Auditors’ remuneration:
– for the audit of the Group and Parent Company Financial Statements	147	141
– non-audit fees (tax compliance services)	–	–

7. Staff costs

	3 July 2026 £’000	27 June 2025 £’000
Staff costs (including directors) consist of:
Wages and salaries	7,250	6,630
Social security costs	957	780
Other pension costs	511	471
	8,718	7,881

The amount recognised in the Consolidated Statement of Comprehensive Income as an expense in relation to the Group’s defined contribution schemes is £511,000 (2025: £471,000).

The monthly average number of employees (including directors) during the period was as follows:

By function	3 July 2026 £’000	27 June 2025 £’000
Sales	134	124
Management and administrative	44	42
	178	166

The majority of employees are eligible to join the defined contribution pension plan.

8. Key management personnel

	3 July 2026 £’000	27 June 2025 £’000
Short-term employee benefits Post employment benefits	624 22	683 25
	646	708

During the period, retirement benefits were accruing to two Directors (2025: 2) in respect of defined contribution pension schemes. Key management personnel include only the Directors and as such no further disclosures in respect of compensation are given.

Additional analysis can be found in the Remuneration Committee report.

9. Share-based payments

In the 53-week period ended 3 July 2026 the Group operated an equity-settled share-based payment plan as described below.

The charge in the period attributed to the plan was £68,000 (2025: credit of £35,000). The total amount recognised in relation to share-based payments is £700,800 (2025: £632,500).

Under the Virgin Wines UK plc Long-Term Incentive Plan, the Group gives performance share awards (PSA) and restricted share awards (RSA) to Directors and senior staff subject to the achievement of a pre-agreed revenue and net profit figure for the financial year of the Group, three financial years subsequent to the date of the award. These shares vest after the delivery of the audited revenue and profit figure for the relevant financial period has been announced.

Awards are granted under the plan for no consideration and carry no dividend or voting rights. Awards are exercisable at the nominal share value of £0.01.

Awards are forfeited if the employee leaves the Group before the awards vest, except under circumstances where the employee is considered a ‘Good Leaver’.

			27 June 2025		28 June 2024
Grant date	Vesting date	Expiration date	Share price at grant	Number of share options issued	Share price at grant	Number of share options issued
PSA Share Awards
2 May 2025	2 May 2028	2 May 2035	47p	963,101	–	–
30 April 2024	30 April 2027	30 April 2034	–	–	48p	2,077,748
RSA Share Awards 6 March 2025	6 March 2028	6 March 2035	43p	300,000	–	–

	Number of Shares 3 July 2026	Number of Shares 27 June 2025
Outstanding at start of period	3,601,200	4,189,775
Granted during the period	–	1,263,101
Lapsed during the period	(2,077,748)	(1,685,544)
Exercised during the period	(123,956)	(166,132)
Outstanding at end of period	1,399,496	3,601,200

Of the above shares, 136,395 were vested and exercisable at 3 July 2026 (2025: 260,351).

The average remaining time for awards to vest is 1.6 years (2025: 2.1 years). The awards outstanding at 3 July 2026 have a weighted average remaining contractual life of 8.5 years (2025: 9.1 years).

The fair value at grant date was determined with reference to the share price at grant date, as there are no market-based performance conditions and the expected dividend yield is 0%. Therefore there was no separate option pricing model used to determine the fair value of the awards.

10. Finance income

	3 July 2026 £’000	27 June 2025 £’000
Bank interest	361	725

11. Finance costs

	3 July 2026 £’000	27 June 2025 £’000
Interest payable for lease liabilities	128	129
Other finance charges	4	–
	132	129

12. Taxation

	3 July 2026 £’000	27 June 2025 £’000
Analysis of charge for the period
Current tax
Charge for the year	–	85
Total current tax	–	85
Deferred tax
Origination and reversal of timing differences	169	212
Adjustment in respect of prior period	3	(7)
Tax losses	(639)	–
Total deferred tax	(467)	205
Tax (credit)/charge on profit on ordinary activities	(467)	290

Factors that may affect future tax charges:

Deferred taxes at the balance sheet date have been measured using the effective tax rate (25%).

The tax assessed for the period is lower (2025: lower) than the standard rate of corporation tax in the UK applied to profit before tax. The differences are explained below:

	3 July 2026 £’000	27 June 2025 £’000
(Loss)/profit before tax	(1,497)	1,592
Profit before tax at the standard rate of corporation tax in the UK of 25% (period ended 27 June 2025 – 25%)	(374)	398
Effects of:
Expenses not deductible for tax purposes	8	3
Adjustment in respect of prior period	3	(7)
Other permanent differences	(104)	(104)
Total tax (credit)/charge for the period	(467)	290

For further information on deferred tax balances see note 17.

13. Earnings per share

Basic and diluted earnings per share are calculated by dividing the earnings attributable to equity shareholders by the weighted average number of ordinary shares in issue during the period.

At 3 July 2026 the total number of potentially dilutive shares issued under the Virgin Wines UK plc long-term incentive plan was 1,399,496 (2025: 3,601,200). Due to the contingent nature of options under the long-term incentive plan, these shares have no dilutive effect on the profit per share.

The calculation of basic profit per share is based on the following data:

Statutory EPS

	3 July 2026	27 June 2025
Earnings (£'000)
Earnings for the purpose of basic earnings per share	(1,030)	1,302
Number of shares
Adjusted average number of shares for the purposes of basic earnings per share	49,964,151	55,038,450
Adjusted average number of shares for the purposes of diluted earnings per share	49,964,151	57,618,515
Basic and diluted earnings per ordinary share (pence)	(2.1)	2.4
Diluted earnings per ordinary share (pence)	(2.1)	2.3

14. Intangible assets

	Goodwill £’000	Software £’000	Total £’000
Cost
At 29 June 2024	9,623	3,872	13,495
Additions	–	832	832
At 27 June 2025	9,623	4,704	14,327
Additions	–	1,561	1,561
3 July 2026
Accumulated amortisation and impairment
At 29 June 2024	–	2,336	2,336
Amortisation charge	–	634	634
At 27 June 2025	–	2,970	2,970
Amortisation charge	–	613	613
3 July 2026	–	3,583	3,583
Net book value
3 July 2026	9,623	2,682	12,305
27 June 2025	9,623	1,734	11,357

Included within Software is £0.9m (2025: £0.2m) net book value in relation to development of the Virgin Wines app which has a remaining amortisation period of four years (2025: five years) Included in Software is £1.3m (2025: £1.1m) net book value of internally generated asset.

Amortisation is charged to administrative expenses in the consolidated statement of comprehensive income. Software is amortised over its estimated useful economic life.

The Group is required to test, on an annual basis, whether goodwill has suffered any impairment. The recoverable amount is determined based on value in use calculations. The use of this method requires the estimation of future cash flows and the determination of a discount rate in order to calculate the present value of the cash flows.

The goodwill figure has been derived from the acquisition of 100% of the share capital of Virgin Wine Online Limited by Virgin Wines Holding Company Limited in 2013 and as such there is only one cash-generating unit.

The Group has estimated the value in use of the business as a cash generating unit based on a discounted cash flow model which adjusts for risks associated with the assets. The discount rate applied is a pre-tax rate of 13.4% (2025: 14.5%).

The forecasts for the business are based over a five-year projection period, use past experience and apply a forecast annual growth rate. The key assumptions used in the discounted cash flow were the sales and EBITDA figures (based on Board-approved plans), the future growth rate (including long-term growth rate of 2%) and the discount rate.

The Directors have assessed the sensitivity of the impairment test to reasonably possible changes in the key assumptions described above, and noted that sufficient headroom existed in all cases.

The forecasts in the model prepared expect an average of 11% revenue growth per annum to 2031. On average, a 3% reduction in revenue growth would cause headroom on the impairment of Goodwill to reduce to £nil. In this case, management would reassess marketing strategies and incremental costs to mitigate the impact of any shortfall.

15. Property, plant and equipment

		Computer
	Leasehold	hardware & warehouse	Fixtures &
	property £'000	equipment £'000	fittings £'000	Total £'000
Cost
At 29 June 2024	20	994	552	1,566
Additions	–	62	17	79
At 27 June 2025	20	1,056	569	1,645
Additions	88	127	7	222
Disposals	–	(371)	(15)	(386)
At 3 July 2026	108	812	561	1,481
Accumulated depreciation
At 29 June 2024	20	882	462	1,364
Charge for the period	–	99	72	171
At 27 June 2025	20	981	534	1,535
Charge for the period	59	71	20	150
Eliminated on disposal	–	(371)	–	(371)
At 3 July 2026	79	681	554	1,314
Net book value
At 3 July 2026	29	131	7	167
At 27 June 2025	–	75	35	110

Depreciation is charged to administrative expenses in the consolidated statement of comprehensive income.

16. Right of use assets

The Group leases a number of properties across the UK, in Norwich, Preston and Bolton.

	Leasehold property	Warehouse equipment	Total
	£’000	£’000	£’000
Cost
At 29 June 2024	5,060	252	5,312
At 27 June 2025	5,060	252	5,312
Lease modification adjustment	441	–	441
Reassessment adjustment	(690)	–	(691)
Additions	–	252	252
Disposals	–	(69)	(69)
At 3 July 2026	4,811	435	5,246
Accumulated depreciation
At 29 June 2024	2,807	135	2,942
Charge for the period	450	43	493
At 27 June 2025	3,257	178	3,435
Charge for the period	689	41	730
Eliminated on disposal	–	(69)	(69)
At 3 July 2026	3,946	150	4,096
Net book value
At 3 July 2026	865	285	1,150
At 27 June 2025	1,803	74	1,877
Lease liability
	Leasehold property	Warehouse equipment	Total
	£’000	£’000	£’000
At 29 June 2024	2,611	121	2,732
Interest expense	125	4	129
Lease payments	(620)	(48)	(668)
At 27 June 2025	2,116	77	2,193
New leases recognised	–	248	248
Lease modification	441	–	441
Lease reassessment	(690)	–	(690)
Interest expense	122	6	128
Lease payments	(949)	(43)	(992)
At 3 July 2026	1,040	288	1,328

The Group recognises right-of-use (“ROU”) assets in respect of leased properties in accordance with the applicable statutory accounting framework. During the year, the lease arrangements were subject to modifications, including a six-month extension to the lease term and a rent review. This resulted in the increase of the lease liability and ROU asset by £441k.

During the period, management also reassessed an expected lease term following the application of a contractual break clause. Based on the circumstances existing at the reassessment date, management determined that the break clause should be exercised and that the lease would therefore terminate earlier than previously anticipated. The remaining lease term and associated lease payments were consequently reassessed resulting in a decrease of £691k.

17. Deferred tax

				3 July 2026 £’000	27 June 2025 £’000
Brought forward				(11)	194
Utilisation through income statement				467	(205)
Carried forward				456	(11)
The balance comprises temporary differences attributable to:
		Fixed asset differences	Other timing differences	Tax losses	Total
		£'000	£'000	£'000	£'000
Deferred tax asset at 29 June 2024		73	23	98	194
Recognised in the period through income statement		(116)	9	(98)	(205)
Deferred tax asset at 27 June 2025		(43)	32	-	(11)
Recognised in the period through income statement		(169)	(3)	639	467
Deferred tax (liability)/asset at 3 July 2026		(212)	29	639	456

The Directors consider that sufficient future taxable profits will be available and as such deferred tax (liabilities)/assets have been recognised in full for Virgin Wine Online Limited and Virgin Wines UK plc.

A deferred tax asset has been recognised on losses in Virgin Wines Holding Company Limited to the extent to which the losses can be utilised through group relief. The deferred tax asset not recognised in Virgin Wines Holding Company is £0.9m (2025: £0.9m).

The deferred tax asset is expected to be utilised in more than one year. Deferred tax is calculated based on the expected tax rate in force when the timing differences reverse of 25% (2025: 25%).

18. Inventories

	3 July 2026 £’000	27 June 2025 £’000
Finished goods for resale	6,850	7,153

There is no difference between the replacement cost of stocks and carrying value (27 June 2025: £nil). Inventories are stated after provision for impairment of £454,000 (2025: £245,000).

19. Trade and other receivables

	3 July 2026 £’000	27 June 2025 £’000
Amounts falling due within one year:
Gross carrying amount - trade receivables	1,332	1,798
Loss allowance	(5)	(5)
Net carrying amount - trade receivables	1,327	1,793
Prepayments	1,258	1,183
Other receivables	39	65
	2,624	3,041

Trade receivables are considered past due once they have passed their contracted due date. Trade receivables and contract assets are assessed for impairment based upon the expected credit losses model.

The Group applies the IFRS 9 Simplified Approach to measuring expected credit losses using a lifetime expected credit loss provision for trade receivables and contract assets. To measure expected credit losses on a collective basis, trade receivables and contract assets are grouped based on similar credit risk and ageing. The contract assets have similar risk characteristics to the trade receivables for similar types of contracts.

The expected loss rates are based on the Group’s historical credit losses experienced over the three-years prior to the period end. The historical loss rates are then adjusted for current and forward-looking information on macroeconomic factors affecting the Group’s customers.

The average credit period on sales is 30 days after the invoice has been issued. No interest is charged on outstanding trade receivables.

At 3 July 2026 there were two (27 June 2025: one) customers who owed in excess of 10% of the total trade debtor balance. These customers were operating within their agreed credit terms and the Directors do not foresee an increased credit risk associated with these customers. As such no provision for impairment has been recognised on these balances.

Trade receivables and contract assets are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group, and a failure to make contractual payments for a period of greater than 60 days past due. There are no amounts outstanding on financial assets that were written off during the reporting period and which are still subject to enforcement activity. Impairment losses on trade receivables and contract assets are presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item.

Other receivables relate to uncleared sales receipts from customers, processed in the normal course of business. The maturity analysis of trade receivables and other debtors is shown below:

	3 July 2026			27 June 2025
	Gross £'000	Provision £'000	Net £'000	Gross £'000	Provision £'000	Net £'000
Trade receivables and other debtors	1,281	-	1,281	1,743	-	1,743
Not yet due	51	(5)	46	55	(5)	50
Overdue	1,332	(5)	1,327	1,798	(5)	1,793

Movements in the impairment allowance for trade receivables and contract assets are as follows:

	3 July 2026 £’000	27 June 2025 £'000
Opening provision for impairment of trade receivables and contract assets	5	6
Recovered provided debt	(2)	(5)
Increase during the period	3	5
Write off of provided debt	(1)	(1)
Carried forward	5	5

20. Cash and cash equivalents

Included in Cash and cash equivalents is a balance of £8.9m (27 June 2025: £8.3m) relating to advance payments received from WineBank customers. The corresponding creditor to customers is included in contract liabilities.

£6.6m of the cash balance is held on 95 day notice (2025: £5.4m) at preferential interest rates between 3.85% and 3.9% (27 June 2025: between 4.3% and 4.4%).

21. Trade and other payables

	3 July 2026 £’000	27 June 2025 £'000
Trade payables	3,437	2,511
Taxation and social security	2,424	2,458
Contract liabilities	9,543	8,876
Accruals and other creditors	1,721	2,029
	17,125	15,874

The Directors consider the fair value of creditors to be equal to the book value given their short-term nature.

22. Provisions

Leasehold dilapidation provision

	3 July 2026 £’000	27 June 2025 £'000
Brought forward	413	367
Charged in income statement	88	46
Carried forward	501	413

Leasehold dilapidations relate to the estimated cost of returning a leasehold property to its original state at the end of the lease as a result of general ‘wear and tear’. The cost is recognised as an expense in the Consolidated Statement of Comprehensive Income and accrued for over the term of the lease, on the basis that the ‘wear and tear’ increases over the period of the lease. The main uncertainty relates to estimating the cost that will be incurred at the end of the lease.

Maturity analysis for provisions

Dilapidation provisions are expected to mature at the end of the lease term as follows:

	3 July 2026 £’000	27 June 2025 £'000
October 2026	–	292
November 2026	313	292
March 2027	188	121
August 2030	–	121
	501	413

The provision relates to the Group's obligations to meet dilapidation and remedial costs arising under its property lease arrangements. During the year, the provision was reassessed following the exercise of a contractual break clause, resulting in an amendment to the estimated costs associated with the Group's lease obligations.

The provision represents management's best estimate of the expenditure required to settle these obligations and is based on the information available at the reporting date, including the expected condition of the property and the estimated scope and cost of remedial works. The timing and amount of the final expenditure remain subject to estimation uncertainty and may be affected by the condition of the property at handover and discussions with the landlord.

23. Financial instruments and financial risk management

The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows:

• trade and other receivables;
• cash and cash equivalents;
• trade and other payables; and
• lease liabilities.

The existence of these financial instruments exposes the Group to the following financial risks:

• credit risk;
• liquidity risk;
• foreign currency risk; and
• capital management.

The Group’s financial instruments may be analysed as follows:

	3 July 2026 £’000	27 June 2025 £'000
Trade and other receivables	1,366	1,858
Cash and cash equivalents	14,707	17,579
Financial assets measured at amortised cost	16,073	19,437
	3 July 2026 £’000	27 June 2025 £'000
Derivative financial liabilities measured at fair value through profit or loss	(16)	(6)
Financial liabilities measured at fair value through comprehensive income	(16)	(6)
	3 July 2026 £’000	27 June 2025 £'000
Trade and other payables, excluding non-financial liabilities	(5,158)	(4,540)
Lease liabilities	(1,328)	(2,193)
Financial liabilities measured at amortised cost	(6,486)	(6,733)

Financial assets which are debt measured at amortised cost comprise trade receivables, other debtors and cash and cash equivalents.

Financial assets measured at fair value through comprehensive income represent the Group’s derivative financial instruments, being foreign exchange forward contracts.

Financial liabilities measured at amortised cost comprise trade payables, accruals and other creditors, lease liabilities and loans and borrowings.

Credit risk

The Group’s maximum exposure to credit risk is limited to the carrying amount of the financial assets recognised at the reporting date, as summarised below:

	3 July 2026 £’000	27 June 2025 £'000
Financial assets measured at amortised cost	16,073	19,437

The Group’s cash and cash equivalents are all held on deposit with leading international banks and hence the Directors consider the credit risk associated with such balances to be low.

The Group provides credit to customers in the normal course of business. The principal credit risk therefore arises from the Group's trade receivables. In order to manage credit risk the Directors set credit limits for corporate customers based on a combination of payment history, credit references and a financial review of the business. Credit limits are reviewed on a regular basis in conjunction with debtor ageing and payment history. Historic credit losses of the Group have been negligible as referenced in note 19.

Details of the trade receivables impairment policy can be found in note 19.

Liquidity risk

Liquidity risk arises from the Group’s management of working capital and the amount of funding required for growth. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due.

The Group manages its cash and borrowing requirements through preparation of annual cash flow forecasts reflecting known commitments and anticipated projects in order to maximise interest income and minimise interest expense, whilst ensuring that the Group has sufficient liquid resources to meet the operating needs of the Group. Borrowing facilities are arranged as necessary to finance requirements.

The following table shows the maturities of gross undiscounted cash flows of financial liabilities as at 3 July 2026:

	Carrying amount £'000	Contractual cash flows £'000	<1 year £'000	1-5 years £'000	>5 years £'000
Non-derivative financial liabilities:
Trade and other payables	5,158	5,158	5,158	–	–
Lease liabilities	1,328	6,278	788	4,032	1,458
	6,486	11,436	5,946	4,032	1,458
Derivative financial liabilities:
Foreign currency forwards
(Inflow)	–	(2,159)	(2,159)	–	–
Outflow	–	2,143	2,143	–	–
	(16)	(16)	(16)	–	–
Total	6,470	11,420	5,930	4,032	1,458

Contractual maturities of financial liabilities as at 27 June 2025 are as follows:

	Carrying amount	Contractual cash flows	<1 year	1-5 years	>5 years
	£'000	£'000	£'000	£'000	£'000
Non-derivative financial liabilities: Trade and other payables	4,540	4,540	4,540	–	–
Lease liabilities	2,193	2,534	656	1,527	351
	6,733	7,074	5,196	1,527	351
Derivative financial liabilities: Foreign currency forwards (Inflow)		(1,717)	(1,717)	–	–
Outflow		1,711	1,711	–	–
	(6)	(6)	(6)	–	–
Total	6,727	7,068	5,190	1,527	351

Foreign currency risk

Foreign exchange risk is the risk that movements in exchange rates affect the profitability of the business. The Group purchases goods from overseas suppliers and is invoiced in currencies other than GBP. It is therefore exposed to movements in the GBP exchange rate against the currencies in which suppliers invoice the Group. The Group monitors exchange rate movements closely and ensures adequate funds are maintained in appropriate currencies to meet known liabilities.

The Group enters into forward foreign currency contracts to mitigate the exchange rate risk for certain foreign currency payables. At 3 July 2026, the outstanding contracts all mature within 6 months (2025: 6 months) of the period end. The Group is committed to buy euros, US dollars and Australian dollars (2025: euros and Australian dollars) with a GBP value of £2.16m (2025: £1.72m).

The forward currency contracts are measured at fair value, by reference to the spot rate. This is a level one valuation in that the spot rate is a directly observable input.

The Group’s exposure to foreign currency risk at the end of the respective reporting period (after the effect of forward contracts disclosed above) was as follows:

	3 July 2026 £’000	27 June 2025 £'000
AUD	–	1
Total	–	1

Liabilities include the monetary assets and liabilities of subsidiaries denominated in foreign currency.

The Group is exposed to foreign currency risk on the relationship between the functional currencies of Group companies and the other currencies in which the Group’s material assets and liabilities are denominated. The table below summarises the effect on reserves had the functional currencies of the Group weakened or strengthened against these other currencies, with all other variables held constant.

	3 July 2026 £’000	27 June 2025 £'000
Loss on 10% strengthening of functional currency	(109)	(87)
Gain on 10% weakening of functional currency	125	106

Capital risk management

The Group’s capital management objectives are:

• to ensure the Group’s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders; and
• to provide an adequate return to shareholders by pricing products and services commensurate with the level of risk.

To meet these objectives, the Group reviews the budgets and forecasts on a regular basis to ensure there is sufficient capital to meet the needs of the Group.

The capital structure of the Group consists of shareholders’ equity as set out in the Consolidated Statement of Changes in Equity. All working capital requirements are financed from existing cash resources.

	3 July 2026 £’000	27 June 2025 £'000
Cash net of lease liabilities (note 25)	13,379	15,386
Equity	19,289	22,620

24. Share capital

	3 July 2026 £’000	27 June 2025 £'000
Authorised, allotted, called up and fully paid 55,246,080 (2025: 55,972,405) ordinary shares of £0.01 each	553	560

On 2 March 2021 the Group underwent a reorganisation in which Virgin Wines UK plc became the ultimate parent undertaking of the Group. As part of the reorganisation 6,615,413 new Ordinary Shares of £0.01 each were created.

The new shares were fully paid and will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive all dividends and other distributions. £0.98m of costs in relation to the issue of new shares have been charged to the share premium account.

During the year no (2025: nil) Ordinary Shares of £0.01 were issued by Virgin Wines UK plc.

During the year Virgin Wines UK plc acquired 4,262,563 (2025: 4,112,651) of its Ordinary Shares of £0.01 for £2,370,439 (2025: £1,968,476). 726,325 of these shares were cancelled immediately following acquisition. As a result the issued share capital was reduced by £7,263. The remaining shares are held in treasury within the Group.

The Directors have not approved an interim dividend and do not recommend the payment of a final dividend (2025: nil).

25. Analysis and reconciliation of cash net of lease liabilities

This section sets out an analysis of the movements in net cash, which includes cash and cash equivalents and liabilities arising from financing activities.

	29 June 2024 £'000	New leases £'000	Other non-cash changes £'000	Cash flow £'000	27 June 2025 £’000
Cash at bank and in hand	18,370	–	–	(791)	17,579
Lease liabilities	(2,732)	–	(129)	668	(2,193)
Cash net of lease liabilities	15,638	–	(129)	(123)	15,386
Decrease in cash in the period					(791)
Lease interest					(129)
Lease payments					668
Movement in net cash in the period					(252)
Net cash at 29 June 2024					15,638
At 27 June 2025					15,386

	28 June	New	Other non-cash		3 July
	2025	leases	changes	Cash flow	2026
	£'000	£'000	£'000	£'000	£’000
Cash at bank and in hand	17,579	-	-	(2,872)	14,707
Lease liabilities	(2,193)	(248)	(569)	1,682	(1,328)
Net cash	15,386	(248)	(569)	(1,190)	13,379
Decrease in cash in the period					(2,872)
New leases recognised					(248)
Lease interest and remeasurement					(569)
Lease payments					1,682
Movement in net cash in the period					(2,007)
Net cash at 27 June 2025					15,386
At 3 July 2026					13,379

26. Related party disclosures

During the period ended 3 July 2026, sales of £802,208 (2025: £839,500) were made by Virgin Wines UK plc to Virgin Wine Online Limited. These have been eliminated on consolidation.

Balances between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation. Details of remuneration of key management personnel can be found in note 7.

During the period the Group paid £48,977 (2025: £47,198) in monitoring fees and expenses to Gresham House Asset Management Limited. At 3 July 2026 a balance of £5,014 (2025: nil) was due to Gresham House Asset Management Limited. Gresham House Asset Management Limited has significant control over the Group by virtue of their appointment of a Board member.

During the period sales of £26,606 (2025: £28,668) were made to LKB Enterprises Limited. At 3 July 2026 £3,984 (2025: £9,636) remained outstanding from LKB Enterprises Limited, a company in which Virgin Wines UK plc's CEO's wife has significant control.

27. Ultimate parent undertaking

In the opinion of the Directors, there is no single controlling party.

28. Events after the end of the reporting period

There have been no matters arising after the balance sheet date that would require disclosure in the financial statements.

29. Capital commitments and contingent liabilities

On 15 June 2026 the Group entered into a 10-year lease agreement in respect of new warehousing facilities, which is expected to commence on completion of construction.

The lease provides for a rent review at the end of year five. Based on the minimum rent increase, the minimum contractual lease payments over the 10-year lease term are £8,587,404.

As the property was not available for use at the reporting date and the lease had not commenced, no right-of-use asset or lease liability has been recognised in respect of this lease at 3 July 2026.

There were no other material capital commitments or contingent liabilities at the financial year end.

The Group has a bank guarantee in place of £0.1m in relation to the operation of its bonded warehouses.

30. Nature of each reserve

Share premium

Amount subscribed for share capital in excess of nominal value.

Own shares reserve

Nominal value of shares held in treasury.

Merger reserve

The difference between the nominal value of shares issued in exchange for the book value of assets acquired.

Share-based payment reserve

The movements on share-based payments.

Retained earnings

All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere.

 

END