Wine merchant Majestic Wine reported a 20% increase in half year profit, helped by soaring sales of wines over £20 a bottle.
Pre-tax profit increase to £8.8m in the year to 26 September from £7.3m in 2010. Half-year revenues increased 9% to £127.8m.
Like for like sales in UK retail stores rose 2.7%, excluding VAT.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The wine warehouse group said sales of still wine priced at £20 per bottle and above increased by 20% and now represent 5.5% of UK retail sales. The group has increased the number of stores that sell expensive 'fine wines' to 122 from 96 the same half a year earlier.
Total sales were up 8.7% to £127.8m while online sales increased 8.7% on last year. Internet sales now represent 9% of UK retail sales.
Majestic, which opened eight new stores opened in the period and three since end of September, also saw a 7.7% increase in active customers to 534,000.
Lay & Wheeler, its fine wine specialist, recorded profit before interest and tax of £292,000 up from £77,000 before. Majestic in France posted profit before interest and tax of £658,000 from £574,000 in 2010.
In the six weeks from 27 September to 7 November 2011, like for like sales in our UK stores down 1.1% with total UK store sales up 3.8%.
The interim dividend increased 15.2% to 3.8p per share.
--
cj
-
-
Act now: First Direct’s £175 switching bonus ending soon
First Direct has launched a £12,500 prize draw on top of its £175 cash bonus - but they both finish soon, so you’ll need to be quick
-
Credit card providers slash 0% balance transfer deals
Customers face a double whammy of rising interest rates and shorter 0% balance transfer periods. We look at what’s going on in the credit card market and why you’ll need to act fast to get the top 0% balance transfer deal
