18th Nov 2013 09:04
LONDON (Alliance News) - Majestic Wine PLC said Monday it is well prepared for the Christmas shopping season, as it reported progress in half-year profit and revenue.
Majestic raised its interim dividend 5.0% to 4.2 pence per share from 4.0 pence a year before.
Pretax profit rose 4.2% to GBP9.5 million in the 26 weeks ended September 30, up from GBP9.2 million a year before. Sales grew 3.3% to GBP130.2 million from GBP126.0 million.
Majestic said like-for-like sales at its UK retail stores declined by 0.4% during the period, which it blamed on the timing of Easter and the comparison with strong sales in 2012 due to the Queen's Jubilee celebrations. However, it said that sales on the same basis have rebounded since June 4, rising 3.0% from that point to the end of September compared to the year before.
Majestic said it opened three new stores during the period and three since, bringing its total to 198. It said it expected to open its 200th store in Petersfield this month.
The wine merchant said online sales rose by 8.3% on the year before and now account for 10% of all UK retail sales. It said it has relaunched its website with improved click-and-collect functionality.
Outside the UK, Majestic was less successful in the period. It said Majestic Wine Calais's profit before interest and tax fell to GBP660,000 from GBP817,000 a year before. The company didn't provide a reason for the deterioration.
However, its Lay & Wheeler fine-wine division's profit on the same basis rose to GBP575,000 from GBP506,000.
"These results show we continue to make steady progress towards our strategic growth objectives and we are very well prepared for the peak Christmas trading period," Chief Executive Steve Lewis said in a statement.
In early trading Monday, Majestic shares were off 1.41 pence at 546.09p.
By Tom Waite; [email protected]; @thomaslwaite
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