UK wine merchant Majestic Wine plc today released its preliminary results for for the 52 weeks to 1 April 2013, which show a profit increase of GBP0.5m to GBP23.7m, in comparison to 2012 profit of GBP23.2m.
The company’s final dividend for the year was GBP0.118 net per share, an increase of GBP0.002 over the year before, which brought the total dividend for the year ended 1 April 2013 to GBP0.158. However, its total sales declined by GBP5.9m, or 2.1%, to GBP274.4m following a reduction in Majestic’s trading in the wholesale market.
Majestic currently operates 193 stores and reported a 56,000 rise in its customers, which now total 624,000, with the average spend per customer of GBP128. Sales of English sparkling wine have significantly increased in the last twelve months, driven by the London Olympics and the Jubilee celebrations, while sales of fine wine priced from GBP20 per bottle rose by 9.4% compared to the previous year.
Online sales also increased by 14.7% during the year, representing 11.1% of Majestic’s UK retail sales. The company changed its minimum requirement for free delivery to 6 bottles, from the previous threshold of 12 bottles, to make its online offering more appealing. This move is said to have resulted in a 25% increase in online transactions, to 234,000, offsetting a 7% fall in the average value of an order, to GBP134.
During the financial year, Majestic opened sixteen new stores at: Northallerton, Esher, Queensferry Road in Edinburgh, Witney, Basingstoke, Falmouth, Stroud, Ludlow, Uttoxeter, Alton, Sudbury, King’s Lynn, Lymington, Dorking, Crawley and Gerrards Cross. The company anticipates that it will expand to 330 locations and said it is making good progress with the four key elements of its future growth strategy: new stores, business customers, ecommerce and fine wine, adding that it is well prepared for the key summer trading period.