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Majestic Wine PLC Preliminary Results

‘Strong progress’

13 June 2011

Majestic Wine PLC (“Majestic”), the UK’s largest wine specialist with 165 stores, today announces its preliminary results for the 52 weeks ended 28 March 2011.

Download the full statement (PDF format) | Investors page

Highlights

  • Group profit before tax increased by 26.6% to £20.3m (2010: £16.0m).
  • Total sales up 10.3% to £257.3m (2010: £233.2m).
  • Like for like sales in UK retail stores up 5.3%.
  • Final dividend of 9.7p net per share, bringing the total dividend for the year to 13.0p, an increase of 26.2% on last year (2010: 10.3p).
  • Lay & Wheeler: Profit before interest and tax at £701k (2010: £23k).
  • Wine and Beer World: Like for like sales grew 23.6% with profit before interest and tax at £1.0m (2010: £0.4m).

Key Metrics

  • A continued increase in the number of customers who have made purchases in the last twelve months, up 8.2% to 511,000.
  • Average spend per transaction declined just 2.5% down at £126 but strong growth in transaction numbers, up 12.5% to 2.0m.
  • Average bottle of still wine purchased at Majestic is now £6.94 (2010: £6.56).
  • Online sales increased 9.6% on last year and now represent 10.2% of UK retail sales.
  • Majestic Commercial: Sales to business customers grew 17.2% on last year and now represent 24.2% of total UK sales.
  • Sales of fine wine (priced at £20 per bottle and above) increased by 23.7% on last year, representing 6.0% of UK store sales.

Stores

  • Accelerated number of new store openings during the period, to twelve from six in the previous year. Redhill, Windsor, Totnes, Ashbourne, Bracknell, Canterbury, Cardiff (a second site), Cobham, Newmarket, Yeovil, Chiswick and the Isle of Wight. With a resite in Ipswich.
  • Since the year end, we have opened in Evesham and Weston-Super-Mare, giving us 165 stores in the UK.
  • Due to our reduction in minimum purchase requirements and following a detailed mapping exercise, we are confident of being able to expand Majestic to an estate of at least 330 stores.

Current Trading

  • In the ten weeks from 29 March to 6 June 2011, UK like for like sales up 4.4%.

Commenting on the results Steve Lewis, Chief Executive, said:

“We are delighted that so many new customers have chosen to shop with Majestic and are encouraged that all parts of the business are showing strong progress.”

For further information, please contact:

Majestic Wine PLC
Steve Lewis (CEO) / Nigel Alldritt (FD)
Tel: 01923 298 200

Buchanan Communications
Tim Thompson / Nicola Cronk / Christian Goodbody
Tel: 020 7466 5000

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Download the full statement (PDF format) | Investors page