UK: Majestic annual profits leap
Majestic Wine has seen pre-tax profit climb for the year to 29 March. The retailer announced today that pre-tax profit for the year reached £10.7m compared with £7.97m in the previous year. Turnover also rose, to £148.2m from £125.7m last year.
Sales growth in the first ten weeks of the financial year from 30 March to 7 June has continued to be very encouraging with UK like-for-like sales up by 8%, said the chairman.
The company also said that the strong sales growth, combined with its tight control over distribution and administrative costs, had enabled it to improve the operating profit percentage to 7% from 6.6% last year.
While sales growth is strongest in the newer stores, the 72 stores opened more than five years ago saw like for like sales growth of 8.2%, the company said.
The company said that it has seen particularly good growth in still wine sales from the Loire, Southern France, South Africa, Chile and New Zealand. Champagne, rose and beer sales also grew strongly. Majestic said that it made a good start to this summer's promotional period which started in early May and continues through to the end of August.
In a statement, chairman John Apthorp said: "We are planning to implement a four-for-one division, or share split, of the company's issued and authorised Ordinary Shares, subject to gaining shareholder approval at the Annual General Meeting. We believe that the share split will improve market liquidity and encourage more retail investors."
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