// Majestic Wine expects profits to fall by 36% year-on-year to £11m

// The company continues to drive cash into Naked Wines as part of a major transformation

// Analysts predict that strong online sales will drive Majestic Wine’s revenue to climb by 6.3% to £508.1m in the year to April

Majestic Wine has said it expects its profits to dive as the company continues to drive cash into Naked Wines as part of a major transformation.

The wine retailer’s pre-tax profits for the year are forecast to plunge by 36 per cent year-on-year to £11 million.

However, analysts predict that strong online sales will drive Majestic Wine’s revenue to climb by 6.3 per cent to £508.1 million in the year to April.

Majestic Wine announced earlier this year that it will sell the Majestic Wine retail brand and focus on its online operation Naked.

Sales at the company rose by four per cent to £477.7 million in the previous year. On an underlying basis, pre-tax profits rose 63 per cent to £17.2 million for the period.

Last month, Majestic revealed that a number of potential buyers were eyeing the business after it began a sale process in April.

Majestic Wine will reveal its full-year figures on June 13.

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