The boss of the online wine retailer – which operates from its headquarters in The Union Building in Rose Lane – said that the current trading environment is likely to “remain tough” but stressed that he believes the business can emerge stronger following turnaround efforts.
On Tuesday, the firm swung to a £15m pre-tax loss for the year to April 3, from a £2.9 m profit a year earlier.
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Meanwhile, reported sales for the year moved slightly higher to £354m, although the company saw new sales drop by over a fifth.
Naked said it has had a tougher start to the current financial year, with revenues over the first quarter down 18pc after a 41pc decline in new sales.
It told shareholders it expects revenues to be between 8pc and 12pc lower for the year.
Naked’s bosses highlighted that it should be able to continue as a going concern even in its “downside” scenario, which would see sales slide by 17pc – but this would need more predictable trading, co-operation from suppliers and new borrowing.
If it fails to secure this combination, then it could fail to meet the requirements to repay its debts and put its future at risk.
In its accounts, the company said: “There remains a risk that a combination of these assumptions could result in a reduction in actual cash flows, which would result in the business being unable to meet its covenant commitments.
“As such these factors give rise to a material uncertainty that may cast significant doubt over the going concern assumption of the financial statements.”
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Chief executive, Nick Devlin, said: “The trading environment is tough, but Naked remains highly resilient. Our focus now is on delivering profitable growth.
“We recognise that the environment is likely to remain tough and are configuring the business to be profitable and cash generative despite challenging conditions.
“A leaner and more focussed Naked will be best placed to deliver for our customers and winemakers.
“I believe we can emerge from these challenges a stronger business.”
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