• Full-year sales on a reported basis jump 41.3% to ÂŁ402.1m 
  • Pre-tax profits dive 74.5% to ÂŁ4.7m
  • Majestic retail like-for-likes up 4.8%, first rise in four years

Majestic Wine has reported a 41% jump in annual sales but its bottom line was hit by the costs from its acquisition of Naked Wines.

Sales in the year to March 28 hit ÂŁ402.1m, the wine specialist said today. At its Majestic Wine stores like-for-likes rose 4.8%, the first rise in four years.

Naked Wines, which was acquired by Majestic in April last year, posted a 27.3% leap in sales to ÂŁ104.3m, boosted by its US performance.

However, the group’s pre-tax profits dived 74.5% to £4.7m, which the retailer attributed to “substantial non-cash charges relating to the Naked Wines acquisition”.

On an adjusted basis pre-tax profits fell from ÂŁ21.6m to ÂŁ15m, which was owing to investment costs and interest on debt facilities.

The retailer has completed the first year of a three-year turnaround plan and has a new senior management team in place.

Chief executive Rowan Gormley said: “We have taken the first step on a long journey – it was a good start but it is just the first step. Early signs are that the plan is starting to work.

However he warned: “We still have lots to do and although we are on course to deliver our three-year plan, it won’t be without challenges.”

Gormley said UK trading conditions will remain “tough” and currency movements will push up the cost of goods.

But he added: “Our plan… remains unchanged, as does our goal – £500m sales by 2019.”

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