Secondary Recommendation

Majestic Wine - Reduction in minimum order drives strong growth

July 2010

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 reduction in its minimum order size and the demise of a major competitor has resulted in a serendipitous leap in performance at Majestic Wine, with year-end results comfortably beating forecasts. In truth this should hardly come as a surprise given that Majestic, the UK's largest wine warehouse retailer, has established a superlative record as a quoted company, with its shares increasing more than seven-fold in the past thirteen years. And this performance simply mirrors its financial success with its pretax profit increasing from £2m to £16m and its eps rising from 2.6p to 18.4p over the same period.Majestic has grown from a single outlet in Wood Green in 1980 to become the dominant player in its field and curre ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Barr (AG) - IRN-BRU and Rubicon drive 18% like-for-like sales growth

Alliance Pharma - Trading ahead of expectations

Majestic Wine (February 2015)

Majestic Wine (August 2014)

Majestic Wine (January 2013)

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

Majestic Wine (March 2012)

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

Majestic Wine (August 2011)

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

Majestic Wine (August 2009)

Majestc Wine (February 2009)

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)

Majestic Wine (January 2005)

Majestic Wine (July 2004)

Majestic Wine (February 2004)

Majestic Wine (January 2004)

Majestic Wine (July 2003)

Majestic Wine (February 2003)

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.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X