Preliminary Results
16 June 2008
Majestic Wine PLC ("Majestic" or the "Company"), the UK’s largest wine specialist, today announces its preliminary results for the 52 weeks ended 30 March 2009.
Download the full statement (PDF format)
Highlights
- Total sales increased by 2.4% to £201.8m (2008: £197.0m).
- Underlying profit before tax down 22.3% to £12.7m (2008: £16.4m).
- Profit before tax down 55.8% to £7.4m (2008: £16.7m) after non-cash impairment charge of £5.3m.
- Impairment charge of £5.3m taken against the carrying value of goodwill of the French business, Wine and Beer World. It has seen a decline in sales as customers are discouraged from travelling due to the strength of the euro.
- Encouragingly UK like for like sales for the ten weeks from 31 March to 8 June 2009 were up 2.0%.
- Ecommerce sales achieved growth of 16% on previous year and now represent 9.1% of UK retail sales (2008: 7.9%).
- Average bottle of wine purchased at Majestic is now £6.35 (2008: £5.98) with 418,000 customers purchasing in the last year.
- Final dividend of 7.0p per share, maintaining the total dividend to 9.8p per share (2008: 9.8p).
- Acquisition of Lay and Wheeler, a fine wine specialist, in March 2009. Good progress with integration and encouraging sales performance since acquisition.
- Four new stores opened during the year in Hereford, Leatherhead, Finchley and Summertown in north Oxford. Since year end have opened in Shrewsbury and Southend-on-Sea. The opening on Leith Walk, Edinburgh in June will bring the total number of stores trading in the UK to 150.
Commenting on the results Steve Lewis, Chief Executive of Majestic, said:
"The resilience of our core consumer business is encouraging, our market share has held steady and we are confident that Majestic is well positioned to benefit from any upturn in the economy."
For further information, please contact:
Majestic Wine PLC
Steve Lewis
Tel: 01923 298 200
Buchanan Communications
Tim Thompson / Jennie Spivey
Tel: 020 7466 5000
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Chairman's Statement
This year, I am reporting a decline in profit at Majestic. Conditions in the economy have taken their toll, with the result that underlying pre-tax profit has declined by 22.3% to £12.7m. In addition, we have decided to write down the carrying value of our French business and the resulting non-cash impairment charge of £5.3m has reduced statutory profit before tax to £7.4m, a decline of 55.8% on last year.
Sales to private customers, which make up the core of our business, have held up well. In contrast, trading with UK corporate customers has been poor. Sales have also declined at our French business, which has been hard hit by the strength of the Euro. This has discouraged consumers from travelling to France.
Whilst short term performance has been affected by wider market conditions, we are confident that the business remains well positioned and that we will be able to capitalise on our underlying strengths as the economic backdrop improves.
We believe that the acquisition of the fine wine specialist Lay & Wheeler, which was completed just prior to the year end, will enhance Majestic’s growing fine wine business. We are making good progress with integration and early results are encouraging.
Dividend
We are recommending to shareholders a final dividend of 7.0p per share, maintaining the total dividend for the year at 9.8p (2008: 9.8p).
People
In times like this, maintaining differentiation is essential and in the case of Majestic this is centred on the expertise of our people and the great service they deliver. I believe that this has played a key role in retaining our customers and I thank all of our colleagues for their vital contribution.
Current trading
I am pleased to report a more encouraging start to the new financial year, with UK like for like sales for the ten weeks from 31 March to 8 June 2009 up 2.0%.
Simon Burke
Chairman
15 June 2009
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