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Majestic’s profits predicted to fall by 36%

Published:  10 June, 2019

Majestic Wines’ pre-tax profits are expected to drop by 36% year-on-year to £11m.

The prediction comes ahead of the wine retailer announcing its full-year results for the year to April 2019 this Thursday (13 June).

However, as the company continues to drive cash into its online Naked Wines arm as part of a major transformation revealed in March, analysts have predicted revenue will increase 6.3% to £508.1m for the year, boosted by strong online sales.

Sales at the company rose 4% to £477.7 million in the previous year. On an underlying basis, pre-tax profits rose 63% to £17.2m for the period.

In March, Majestic announced it was planning an overhaul of the business that will see the Majestic name disappear as part of plans to focus on its online and international reach via its Naked arm.

Last month, Majestic revealed that a number of potential buyers were eyeing up its bricks and mortar stores, romoured to be on the market for £100m, after it kicked off a sales process in April.

Majestic acquired the online retailer in 2015 for £70m, with Naked founder Rowan Gormley taking over as CEO.