StocksMedium•6 November 2026•

4 min read

Naked Wines Offers to Buy Back Shares Worth Up to £5.7 Million

Key Facts

1The buyback offer ranges from £2.0 million to £5.7 million at 80 pence per share.

2The proposed maximum is 7,100,000 shares, or about 10.72% of issued shares excluding treasury shares.

3The company intends to accept about £5.7 million if trading reaches or exceeds the midpoint of its net cash guidance range, and about £4 million if it falls in the lower half.

4Member retention rose to 79% from 76%, and gross profit margin increased to 21.7% from 19.5% in the first half of FY27.

Naked Wines plc announced on November 6, 2026, its intention to buy back ordinary shares through a tender offer with a total value ranging from £2.0 million to £5.7 million. The company set a fixed price of 80 pence for each ordinary share. In its announcement, it said eligible shareholders were invited to tender their shares. The final purchase value remains linked to trading performance, as the board said it would determine the amount accepted partly on the basis of the performance of the pre-Christmas season. The announcement therefore combines a share buyback offer with a trading update for FY27, while the company left the final size of the transaction subject to developments during the season.

The proposed maximum purchase is 7,100,000 shares, equivalent to about 10.72% of issued ordinary shares excluding shares held in treasury, according to the announcement. The value the company intends to accept varies according to where trading falls within its FY27 net cash guidance range. If trading is at or above the midpoint of the range, the company said it intends to accept tenders worth about £5.7 million. If trading falls in the lower half of the guidance range, it intends to accept tenders worth about £4 million. This condition makes the actual size of the offer dependent on financial performance, rather than the announced maximum alone.

Naked Wines said trading since the start of the financial year had been in line with the FY27 guidance it had previously announced. In the first half of the financial year, the member retention rate rose to 79%, compared with 76% in HY26. Gross profit margin also increased to 21.7% from 19.5% in the comparable period, following price increases, the company said. It estimated the change in margin at about 220 basis points. These indicators provide the operating performance picture set out by the company in its update, alongside its use of trading performance to determine the offer’s final value.

The company added that customer acquisition payback for cohorts acquired during HY27 was on track to meet its 24-month target. That compares with 44 months in HY26 and 42 months in FY26. The company said retention and margin levels improved in the first half, while the payback trajectory remained in line with the target set for new cohorts. In FY26 results published in July, the company reported revenue of £199.1 million, down 20% year on year, or 18% at constant exchange rates. In the same financial year, adjusted earnings before interest, tax, depreciation and amortisation were £7.6 million, up 13% from £6.7 million in FY25 at actual exchange rates.

Naked Wines ended FY26 with net cash of £33.4 million, excluding lease liabilities, up £3.3 million from FY25. The company attributed this to generating £9 million in cash after accounting for a £6 million share buyback. Positive free cash flow was £10.6 million, compared with £18.5 million a year earlier, and the company said the decline was mainly related to slower inventory reduction as levels approached normal in the UK and Australia. Total inventory, including advance payments to winemakers, fell by £10.4 million to £97.2 million, its lowest level in five years, from £107.6 million in FY25. FY27 guidance included revenue of between £158 million and £175 million, adjusted profit of between £7.6 million and £9 million, and net cash of between £34 million and £42 million, with lease liabilities excluded from the net cash measure.

The company previously carried out a share buyback programme during FY26 that covered 7.7 million shares, equivalent to 10.5% of issued capital at the start of April 2025, according to its annual results. The offer announced in November is subject to subsequent dates and procedures. The company intends to announce the offer’s final value, the number of shares available, the basic entitlement ratio and the outcome of the general meeting on December 8, 2026. The deadline for receipt of tender forms is December 10, 2026, while the company expects to complete the offer on December 16. It also set December 11 as the date for announcing first-half results for the 26 weeks ended September 28, 2026.