Interim Results

INTERIM RESULTS

'Profit increase of 20%, like for like sales up 2.7%'

Majestic Wine PLC ("Majestic"), the UK's largest wine specialist, today announces its interim results for the

26 weeks ended 26 September 2011.

·; Profit before tax increased by 20.0% to £8.8m (2010: £7.3m).

·; Interim dividend increased 15.2% to 3.8p per share.

·; Total sales up 8.7% to £127.8m (2010: £117.6m).

·; Like for like sales in UK retail stores up 2.7% (excluding VAT).

·; Increase in active customers, up 7.7% to 534,000.

·; Online sales increased 8.7% on last year and now represent 9.0% of UK retail sales.

·; Eight new stores opened in period and three since end of September bring total number of stores to 174.

·; Lay & Wheeler, our fine wine specialist, recorded profit before interest and tax of £292k (2010: £77k).

·; Majestic in France recorded profit before interest and tax of £658k (2010: £574k).

·; In the six weeks from 27 September to 7 November 2011, like for like sales in our UK stores down 1.1% with total UK store sales up 3.8%.

Commenting on the results Steve Lewis, Chief Executive, said:

"I am very pleased that Majestic has achieved profit growth of 20.0% in the half year and we are very well prepared for the important Christmas trading period."

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Chairman's Statement

I am pleased to announce that, for the six month period ended 26 September 2011, the Group has achieved a very strong result with profit before tax increasing 20% to £8.8m and revenues up 8.7% to £127.8m.

Majestic Wine

Sales were £117.0m up 9.8% from £106.5m in the previous first half with like for like sales growing 2.7%. The average spend per transaction at our stores has risen to £125 from £122 and the average bottle price of still wine purchased at Majestic is now £7.13 up from £6.67 last year. We are encouraged that our proposition built on the strength of our product range and excellent customer service continues to attract new customers to Majestic. The number of customers registered on our database who have made purchases in the last twelve months was up by 7.7% to 534,000.

Fine Wine

Sales of still wine priced at £20 per bottle and above increased by 20.0% and now represent 5.5% of UK retail sales. We now have fine wine display areas installed in 122 of our stores compared with 96 at the end of the previous first half year.

ECommerce

Sales placed online continue to show good growth, up 8.7% on last year representing 9.0% of total UK retail sales. Increasingly customers expect to be able to interact with us at a very personal level on our web-site. To facilitate this we have redesigned our system for product reviews making it much easier for customers to rate products, hold discussions about particular wines and make recommendations to their friends. We also continue to increase the amount of video content on our site and have launched a series advertising our in-store wine courses and events. These videos contain functionality allowing customers to book onto events at their local store.

New Stores

During the period we opened eight new stores in Evesham, Weston-Super-Mare, Fleet, Livingston, Hale, Dundee, Worthing and Bury St Edmunds. Since the end of the period we have opened in Clitheroe, Ripon and Braintree. We will open in Chesterfield and in West Kirby on the Wirral later in the year bringing the total number of stores trading in the UK to 176. We are pleased to have been able to accelerate the pace of new store openings and believe that Majestic has the potential to expand to at least 330 locations in the UK.

Awards

We were proud to have once again been recognised as the "High Street Chain of the Year" at the International Wine Challenge Awards 2011 and delighted that for the third year in succession readers of Decanter magazine voted us "Best National Wine Merchant".

Lay & Wheeler

Lay & Wheeler is our fine wine specialist with particular expertise in the fields of en primeur sales, cellarage and broking of customer reserves. Profit before interest and tax for the period was £292k, against £77k recorded in the first half of last year. The main activity during the period was selling en primeur wines from the excellent Bordeaux 2010 vintage. This campaign was a very successful one in its own right however volumes were at a lower level than the very highly sought after Bordeaux 2009 vintage sold in the previous first half. The revenue and profit earned from selling the wines from these vintages has been deferred until delivery to customers during the 2013 and 2014 financial years.

Majestic in France

We operate three stores in northern France, two in Calais and one in Cherbourg, catering to UK consumers wishing to take advantage of the much lower rate of alcohol duty in France. Sales on a constant currency basis grew 4.6% on last year. Profit before interest and tax for the period was £658k up from £574k in the previous first half.

Dividend

We are declaring an increase of 15.2% in our interim dividend to 3.8p per share. The dividend will be paid on 6 January 2012 to shareholders on the register at the close of business on 9 December 2011.

Future Prospects

In the first six weeks of the second half from 27 September to 7 November 2011 like for like sales through our UK stores were down 1.1%. This trading period has been adversely affected by two weeks of disappointing sales in mid-October. Total sales through our UK stores over the same period were up 3.8%.

We are pleased with the results achieved in the first six months and, though the economic environment continues to be challenging, we are very well prepared for the key trading period ahead and encouraged by the initial customer response to our Christmas promotions.

Phil Wrigley

Chairman

14 November 2011

Group Income Statement

For the 26 weeks ended 26 September 2011

Group Statement of Comprehensive Income

For the 26 weeks ended 26 September 2011

Group Statement of Changes in Equity

For the 26 weeks ended 26 September 2011

Group Balance Sheet

As at 26 September 2011

Group Cash Flow Statement

For the 26 weeks ended 26 September 2011

Notes to the Group Interim Financial Statements

1. General Information

Majestic Wine PLC is a public limited company ("Company") incorporated in the United Kingdom under the Companies Act 2006 (registration number 2281640). The Company is domiciled in the United Kingdom and its registered address is Majestic House, Otterspool Way, Watford, WD25 8WW. The Company's Ordinary Shares are traded on the Alternative Investment Market ("AIM"). Copies of the Interim Report are being sent to shareholders. Further copies of the Interim Report and Annual Report and Accounts may be obtained from the address above.

The Group's principal activity is the retailing of wines, beers and spirits.

2. Basis of preparationThe interim financial statements of the Group for the 26 weeks ended 26 September 2011, which are unaudited, have been prepared in accordance with the accounting policies set out in the annual report and accounts for the 52 weeks ended 28 March 2011.

The financial information contained in the interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The financial information for the full preceding year is based on the statutory accounts for the 52 weeks ended 28 March 2011. The report of the auditors, Ernst & Young LLP, on those financial statements was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498(2) or (3) of the Companies Act 2006. These accounts have been delivered to the Registrar of Companies.

As permitted, this interim report has been prepared in accordance with UK listing rules and not in accordance with IAS 34 "Interim Financial Reporting" - therefore it is not fully in compliance with IFRS.

The interim financial statements are presented in sterling and all values are rounded to the nearest thousand pounds (£000) except when otherwise indicated.

3. Segment reporting

The Group's operations are organised into three distinct business units each operating in a separate segment of the overall wine market. Majestic Wine Warehouses is a UK based wine retailer, Lay & Wheeler is a specialist in the fine wine market and Majestic in France operated retail units in northern France servicing the UK cross-channel market.

No operating segments have been aggregated to form the above reportable segments. Management monitors the operating results of the businesses separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated on both sales growth and profit before interest.In the information provided to the chief operating decision maker, the underlying performance of the Lay & Wheeler operating segment is evaluated and measured based on revenue and profit being recognised on orders, cash receipts and payments from en primeur campaigns. Management reviews the business on this alternative basis as resources utilised in generating these sales are expensed as incurred. This differs from the revenue recognition policy required under IAS 18 where revenue is recognised on delivery which may be up to two years later. As a result a reconciling item is presented between the total operating segments revenue and results and the IFRS statutory measure.

Financing including associated revenues and costs and taxation are managed at a Group level and are not allocated to operating segments. Inter-segment transactions are conducted on an arm's length basis in a manner similar to transactions with third parties.

4. Taxation

Taxation for the 26 weeks to 26 September 2011 has been calculated by applying the estimated tax rate for the current financial year ending 28 March 2011 adjusted for the reduction in the rate of corporation tax to 26% from 28%, except that deferred tax assets relating to share based payments have been recalculated to reflect an increase in the share price.

5. Earnings per share

Basic earnings per share is calculated on profit for the period attributable to equity shareholders of £6,272,000 (2010: £5,099,000) apportioned over the weighted average number of Ordinary Shares that were in issue for the period: 62,753,091 (2010: 61,600,035). The calculation of diluted earnings per share is in accordance with IAS 33 - Earnings Per Share. The weighted average number of Ordinary Shares in issue has been adjusted to take account of the effect of all dilutive potential Ordinary Shares. The number of shares used in the calculation was 63,979,104 (2010: 62,487,027).

6. Dividend

A dividend of 9.7p net per share was paid to shareholders on 12 August 2011. An interim dividend of 3.8p per share will be paid on 6 January 2012 to shareholders on the register at the close of business on 9 December 2011.

7. En Primeur

En primeur refers to the process of purchasing wines early before they are bottled and released onto the market. This method of purchasing gives the consumer the opportunity to secure wines that may be in limited quantity and very difficult to acquire after release. Receipts and payments for these wines may be up to two years before the wines are delivered to customers. Payments to suppliers are treated as trade receivables and receipts from customers treated as deferred income until the wines are delivered.

In order to provide users of the financial statements with more detailed and comparable information, management have reported en primeur balances in separate lines on the face of the balance sheet.

a) Analysis of en primeur balances

b) Movement in en primeur balances

8. Note to the cash flow statement

Reconciliation of profit to cash generated by operations

9. Net debt

a) Analysis of net debt

b) Reconciliation of net cash flow to movement in net debt