Virgin Wines UK has said performance for the year to June 30 is in line with expectations.

The ecommerce wine retailer said in its FY23 trading update today that total sales for the year reached £59 million, with adjusted profit before tax “no less than £0.5 million” for the period.

The latest figures represent a dip in performance for the company, with FY22 overall group revenue at £69.2 million, and profits before tax at £5.1 million.

Virgin said today that the company continued to execute its “disciplined strategic approach” to customer acquisition during the year, with around 90,000 new customers acquired during the period at an average cost per recruit of £12. This was an improvement of 9.2% year-on-year (FY22: £13.22), the retailer said.

“Conversion and cancellation rates also trended positively throughout Q4, while customer deposits into WineBank achieved a seasonal high of £8m at the year-end,” Virgin said.

The company also highlighted recent activity including a commercial partnership with WH Smith Travel, which sees a selection of wines stocked across 39 WH Smith stores within airports and train stations.

Company CEO Jay Wright said: “Despite the inflationary environment, we have delivered results in line with expectations. We have successfully maintained our disciplined approach to customer acquisition, conversion and cancellation rates are trending positively, and our flagship WineBank scheme continues to be resilient in challenging market conditions.”

Looking ahead, Wright said the company remains confident in the underlying business model and opportunities for future growth.