Majestic Wine is toasting a spike in sales for the full year after the firm was boosted by its takeover of online rival Naked Wines.
Revenues rose 41.3 per cent to £402.1 million in the year to 28 March as the firm said its “transformation” plan under new chief executive in Rowan Gormley was beginning to pay off.
Sales at Naked broke through the £100m barrier and Majestic notched up its first rise in like-for-like sales in four years, with growth coming in at 4.8 per cent.
However, pre-tax profits fell from £18.4m a year earlier to £4.7m as the £70m takeover and investment costs took their toll on the balance sheet.
Gormley, who founded Naked Wines, said: “Early signs are that the plan is starting to work.
“Strong sales figures reflect the hard work being done on the ground by the whole team. At Naked Wines, we had a belter of a year – breaking through the £100m sales barrier and delivering a maiden profit.”
He added that trading conditions “remain tough” at the company’s 210 UK outlets but it is still aiming for £500m of sales by 2019.
“We still have lots to do and, although we are on course to deliver our three-year plan, it won’t be without challenges,” he said.