Primary Recommendation

Majestic Wine

August 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

A perfect storm of serendipitous events, most notably the failure of two major competitors, has electrified prospects at Majestic Wine, which operates a chain of wine warehouses across the UK. While the failures of Oddbins and First Quench were extremely useful, the business had already been doing much right given that in the past 15 years it has increased its pretax profit from £2m to £20.3m. The biggest driver of this growth has been the addition of new space and last year the company doubled the rate of new openings to 12, which meant Majestic ended the year with 165 warehouses. Continuing at this rate should underpin a healthy double-digit growth rate for the rest of the decade but Majestic is also achi ...

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Majestic Wine - 8% increase in transactions (August 2012)

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Majestic Wine - Further reduction in Net debt (February 2012)

Majestic Wine - Aim to double estate to 330 outlets (July 2011)

Majestic Wine - Reduction in minimum order drives strong growth (July 2010)

Majestic Wine (August 2009)

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Majestic Wine - Profits well below forecasts (December 2008)

Majestic Wine (August 2008)

Majestic WIne (January 2008)

Majestic Wine (August 2007)

Majestic Wine (February 2007)

Majestic Wine (January 2007)

Majestic Wine (August 2006)

Majestic Wine (February 2006)

Majestic Wine (January 2006)

Majestic Wine (August 2005)

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Majestic Wine (January 2004)

Majestic Wine (July 2003)

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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Majestic Wine

August 2011

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