The wine merchant Majestic has posted a small rise in profits despite revenues falling flat following poor weather.
The retailer, which has plans to grow its 193-strong store estate to around 330 locations in the UK, also revealed how customers’ average wine spend had risen to £7.56 per bottle.
The chain posted pre-tax profits of £23.7 million for the year to April 1, an increase of £500,000 on a year earlier.
Sales of still wines from the Rhone, Argentina, Italy and Spain showed good growth, while Majestic also reported a big jump in sales of sparkling wine from English vineyards.
But total sales were down 2.1% to £274.4 million in the year, reflecting a cut in its exposure to the wholesale drinks market and last summer’s unseasonable weather, which caused the cancellation of a large number of outdoor events.
The number of customers who made purchases in the year still rose by 56,000 on a year earlier to 624,000, while the average spend per transaction remained level at £128.
Chief executive Steve Lewis said: “Majestic is in excellent shape and has made good progress with the four key elements of our future growth strategy: new stores, business customers, ecommerce and fine wine.”
After many events across the UK were cancelled due to last year’s poor weather, he said there was a “pent-up need for barbecues”, which should boost Majestic’s sales this summer.
“We only need a bit of sun,” he said.