Booze chains on the rack

Tax bill blow for drinks shop owners

THE owners of off-licence chains Bargain Booze and Wine Rack could be on the brink of administration, analysts have warned.

Trading in Conviviality shares was suspended yesterday as bosses revealed they faced an unexpected £30million tax bill in two weeks’ time.

It led to a second profit warning in a week after they previously disclosed a “material error” in financial forecasts for their wholesale arm.

Conviviality have 650 stores run by more than 400 franchisees and employ nearly 2700 people.

As well as their own outlets, they deliver to 10,000 business customers and 23,000 independent shops.

The firm, headed by chief executive Diana Hunter, who earned nearly £1million in pay and perks last year, are due to hold talks with HM Revenue & Customs – but refused to explain what the tax bill was.

The payment, due on March 29, would create a “short-term funding requirement” they said.

The board later announced they were scrapping a 4.5p-a-share interim THE Co-operative Bank have slashed annual losses to £140million. The shortfall, compared with £477million in 2016, came amid a wave of cost-cutting.

Boss Liam Coleman said they were “drawing a line under the past”.

The bank plunged into crisis in 2013 and nearly collapsed. They then fell into the hands of US hedge funds. dividend that was due to be paid this Friday, saving about £8.2million.

Old Mutual, Conviviality’s third biggest shareholder, had already sold their entire 6.95 per cent stake before the shares were suspended.

A spokeswoman could not confirm if and when trading in the firm’s stock would resume.

Analyst Phil Carroll of stockbroker Shore Capital said: “Our concern is that the business could be trapped in a vicious cash cycle.”

He said he believed Conviviality’s problems were “very fixable” and “the business model still remains relevant”.

But he explained: “Our fear is that the short-term funding alongside further liquidity pressure could result in the business being insolvent and therefore going into administration.”

CONSTRUCTION giants Balfour Beatty posted a 1000 per cent profit rise last year after avoiding risky projects. But the £117million – up from £10million in 2016 – was a fraction of their £8.2billion revenue, revealing their tight margins. Boss Leo Quinn urged the Government to look at bidders’ balance sheets, not just price, when choosing contractors – after the failure of Carillion.