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Majestic Wine's expansion boosts profits

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Majestic Wine has today posted rising sales and a 26.6 per cent rise in profits for its last financial year.

In the 52 weeks ending March 28th profits totalled £20.3 million as total sales increased 10.3 per cent and like-for-like (LFL) sales in UK retail stores grew by 5.3 per cent.

Over the year 12 new stores were opened by the retailer, an impressive rate of growth considering the current trading conditions and the fact that rival wine and beer specialist Oddbins fell into administration during the period.

Steve Lewis, CEO of Majestic Wine, commented: “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.”

Customer numbers rose 8.2 per cent to 511,000 over the 12 months, although the average spend did decline 2.5 per cent to £126 perhaps reflecting the tighter finances of consumers.

Wine still accounts for the majority of the firm’s sales, 85 per cent, of which French varieties remain the most popular - 34.4 per cent of total still wine sales.

A final dividend of 9.7p per share has been announced by the company bringing its total dividend to 13p, up 26.2 per cent on 2010.

Despite acknowledging the that trading will be tricky this year Majestic Wine has also reported a continued rise in sales and the opening of two new stores, bringing its total to 165, since the year end.

Phil Wrigley, Chairman of Majestic Wine, said: “Whilst we recognise that market conditions continue to be challenging, we are encouraged to have achieved UK LFL sales growth of 4.4 per cent in the first ten weeks of the new financial year, from March 29th to June 6th 2011.

Published on Monday 13 June by Editorial Assistant

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