Wine specialist Majestic disclosed on Monday that full-year profits, scheduled to be reported next month, will be at the top end of City expectations.

Numis takes that to imply a figure between £15.5m and £15.8m and has put the stock - previously rated hold - under review pending detail of the results, because Majestic is trading at a premium to peers.

House broker Investec, advising buy, noted that Majestic’s shares have outperformed the retail sector by 10% in the past quarter. As well as increasing its forecast for the year to be reported, Investec raised its figure for 2011 by 6% to £17m.

The broker said: “Notwithstanding the risks linked to potential VAT increases to 20% in 2011, we believe the forecast risk remains on the upside.”

Majestic has benefited from business changes such as cutting its minimum purchase to six bottles.