Preliminary Results
14 June 2010
Majestic Wine PLC (“Majestic”), the UK’s largest wine warehouse chain, today announces its preliminary results for the 52 weeks ended 29 March 2010.
Download the full statement (PDF format)
Highlights
Financial
- Profit before tax increased by 117% to £16.0m (2009: £7.4m).
- Underlying profit growth of 26% after adjusting for last year’s £5.3m reduction in the carrying value of our French business.
- Total sales up 15.6% to £233.2m (2009: £201.8m), now including £12.4m from Lay & Wheeler, the fine wine specialist we acquired in March 2009.
- Like for like sales in UK retail stores up 8.4%.
- Final dividend of 7.5p net per share, bringing the total dividend for the year to 10.3p, an increase of 5.1% on last year (2009: 9.8p)
Key Metrics
- The move to a six bottle minimum purchase (from twelve bottles) has resulted in a substantial increase in the number of customers who have made purchases in the last twelve months, up 54,000 to 472,000.
- Average spend per transaction is just 4% down at £129 but strong growth in transaction numbers, up 14.6% to 1.7m.
- Average bottle of still wine purchased at Majestic is now £6.56 (2009: £6.35).
- Online sales increased 19.7% on last year and now represent 10.0% of UK retail sales.
- Sales of fine wine (priced at £20 per bottle and above) increased by 22.7% on last year, representing 5.1% of UK store sales.
Stores
- During the period we opened six new stores in Shrewsbury, Southend, Leith Walk in Edinburgh, Market Harborough, Abingdon and Sale. Since the year end we opened in Redhill.
- We now operate from 153 stores in the UK and are encouraged by an increase in the level of opportunities for new sites appearing on the market.
- We will roll out fine wine display areas to all stores over the next two years.
- Like for like sales in UK retail stores up 8.4%.
Current Trading
- In the ten weeks from 30 March to 7 June 2010, like for like sales up 7.3%.
Commenting on the results Steve Lewis, Chief Executive, said:
"We are very encouraged by our ability to attract new customers which will allow us to continue to grow our market share. While the UK economic outlook remains uncertain, we believe that Majestic is well positioned for future growth."
For further information, please contact:
Majestic Wine PLC
Steve Lewis (CEO) / Nigel Alldritt (FD)
Tel: 01923 298 200
Buchanan Communications
Tim Thompson / Nicola Cronk
Tel: 020 7466 5000
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Chairman's Statement
I am very pleased to announce that profit before tax was £16.0m, an increase of 117% on last year. Total Group sales were up 15.6% to £233.2m and like for like UK sales grew 8.4%.
Underlying profit growth was 26% after adjusting for last year’s £5.3m reduction in the carrying value of our French business.
Dividend
We are proposing a final dividend of 7.5p per share, bringing the total dividend for the year to 10.3p, an increase of 5.1% on last year.
People
I am proud of our exceptional team of retailing professionals whose knowledge of, and passion for wine make Majestic what it is. At the heart of our business is the excellent customer service that they deliver. I would like to pay tribute again to the outstanding contribution they make to the success of Majestic.
Current trading
Sales growth in the first ten weeks of the new financial year, from 30 March to 7 June 2010, has continued to be encouraging with UK like for like sales up 7.3%.
Board Changes
Having completed 10 years on the Board I will be stepping down at the Annual General Meeting on 6 August 2010. Phil Wrigley, who joined the Board in April as a non-executive Director will succeed me as non-executive Chairman. Phil has a financial background and brings extensive retail management experience to Majestic. Currently he is Chairman of Habitat PLC and until recently he was Chairman of New Look having previously been its Chief Executive.
It has been a privilege to serve on the Board of such a wonderful business and I shall be very sorry to go. I believe Majestic is well placed to deliver another ten years of great service to its customers and great returns to its shareholders. In Phil Wrigley the Board will have an experienced and enthusiastic Chairman who will bring out the best in Majestic. I wish everyone in the business well for the future.
Simon Burke
Chairman
14 June 2010
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