Majestic Wine sees double
Investors raised a glass to Majestic Wine after the retailer hiked its dividend by more than 25% and laid out plans to double its stores network to 330 over the next ten years, writes Manfreda Cavazza.
Popular: Customers pop in on a Friday to buy wine for the weekend
The news comes on the back of forecast-busting profit figures, up 26.6% to £20.3m in the year ending March 28.
Underlying sales bubbled up 5.3%, defying the doom and gloom on the high street.
The total dividend was 13p, up from 10.3p. Sales since the year end are up 4.4% in the last 10 weeks, dampened slightly by the wet weather.
Chief executive Steve Lewis said the company's decision to reduce the minimum in-store purchase from 12 to six bottles in September 2009 had been a big hit with shoppers, giving it confidence to expand.
He added: 'People used to come to us for big events like Christmas or weddings. Now they're popping in on a Friday to buy wine for the weekend.'
Customer numbers are up 8.2% to 511,000. The demise of rivals Wine Rack and Oddbins has also helped.
The shares, which have risen 74% over the last year, slipped 20.25p to 450p on profit taking.
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