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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Majestic Wine

August 2014

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.

  • Epic Code:
  • WINE
  • Price:
  • 405p
Wine warehouse retailer Majestic’s final results were a shade better than expected with pretax profit increasing £0.1m to £23.8m on sales up 1% to £278.2m. In the UK retail sales rose 3.5% (like-for-like sales fell 9.1%) to £244.2m, reflecting continued tough conditions on the high street. Encouragingly, the number of active customers who made purchases in the year rose 2.9% to 643,000 while average spend per transaction was £129 (2013: £128) and average bottle of still wine purchased was £7.94 (2013: £7.56). One bright spot was online sales, which increased 5.8% to £27.7m and now represents 11.4% of UK retail sales (2013: 11.1%).Elsewhere, wholesale sales fell from &poun ...

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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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