Preliminary Results
16 June 2008
Majestic Wine PLC ("Majestic"), the UK’s largest wine warehouse chain, today announces its preliminary results for the 52 weeks ended 31 March 2008.
Download the full statement (PDF format)
Highlights
- Profit before tax increased by 3.4% to £16.7m (2007: £16.2m).
- Total sales up 3.1% to £197.0m (2007: £191.2m). On a comparable 52 week basis, total sales increased by 5.1%. Like for like UK sales up 2.4%.
- Like for like UK sales up 0.8% in the first ten weeks to 9 June 2008. Since April, sales have been significantly stronger with like for like UK sales up 4.4% for the six weeks ending 9 June 2008.
- Final dividend of 7.0p net per share, bringing the total dividend to 9.8p net per share, an increase of 15.3% on 2007.
- Average bottle of wine purchased at Majestic is now £5.98 (2007: £5.75). Average spend per transaction has risen to £133 (2007: £123).
- Good growth of fine wine, sales increased 25% on last year and now represent 4.2% of UK retail sales. 45 stores having a dedicated fine wine display area and plans to add a further 10 this year.
- Continuing growth in internet sales, now representing 7.9% of UK retail sales.
- Good progress made in increasing the rate of the store-opening programme with ten new stores opened during the financial year and three re-sites. Since the year end an additional store opening in Hereford, gives us 145 stores in the UK. Several more new stores in advanced stages of negotiation.
Commenting on the results Tim How, Chief Executive of Majestic, said:
"Although the consumer environment is challenging, Majestic has a clearly differentiated retail model and is well positioned for future growth in this highly competitive market."
For further information, please contact:
Tim How
Majestic Wine PLC, Tel: 01923 298 200
Tim Thompson / Nicola Cronk/ Susanna Gale
Buchanan Communications, Tel: 020 7466 5000
Jeff Keating
Landsbanki Securities, Tel: 020 7866 5000.
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Chairman's Statement
I am pleased to announce that the Group has achieved a further year of profit growth.
Profit before tax for the 52 weeks ended 31 March 2008 was £16.7m, an increase of 3.4%. Diluted earnings per share increased 6.6% to 17.7p. This enhanced growth in earnings per share is the result of the share buy-back programme.
Total sales were £197.0m which was £5.8m higher than the prior year (a 53 week period). On a comparable 52 week basis total sales increased 5.1% with like for like UK store sales growing 2.4%.
Dividend
We are recommending for approval by shareholders at the Annual General Meeting a final dividend of 7.0 pence net per share payable on 15 August 2008 to shareholders on the register on 18 July 2008. This brings the total dividend to 9.8 pence net per share, an increase of 15.3% on 2007.
Board Changes
Tim How, who has been Chief Executive for the last 19 years, will be retiring after the forthcoming Annual General Meeting. Majestic, which over those 19 years has delivered exceptional customer satisfaction, provided fulfilling work for thousands of people, and generated tremendous shareholder value, owes these achievements in large part to Tim’s leadership. I would like to thank Tim for his invaluable contribution to Majestic.
Steve Lewis, our Chief Operating Officer for the past two years, will be appointed Chief Executive on Tim’s retirement. Steve, aged 44, joined Majestic in 1985 as a graduate trainee manager. He became Retail Director in 1991 and was appointed to the Board in 1998.
People
As I have noted before, the quality of our people at Majestic is central to our success. In challenging markets, their job is far from easy but it is thanks to their unstinting efforts that we have been able to record these results.
Share Buy-Back Programme
We are continuing to buy back our shares in line with the programme announced previously. We have now purchased 4.4 million shares for an aggregate consideration of £14.9m. In executing this programme, the Board is committed to acting in the best interests of shareholders, taking account of all circumstances.
Current Trading
Like for like UK sales for the ten weeks from 1 April 2008 to 9 June 2008 were up 0.8%. The sales performance during this period has been affected by the above inflation increase in duty rates, which pulled forward some of April’s sales into March. Since April, sales have been significantly stronger with like for like UK sales for the most recent six weeks ending 9 June 2008 up 4.4%.
Simon Burke
Chairman
16 June 2008
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