Majestic Wine keeps its spirits up despite swinging to a loss

Majestic Wine boss Rowan Gormley today insisted his plan to turn the group around was working, even though the business posted a loss in its first half.

Majestic made a pre-tax loss of £4.4 million in the six months to September 26, but sales rose 10.6% to £205.6 million, which Gormley said was a sign that investments in better stores and customer service were paying off.

“Our plan is working,” Gormley explained.

“We are at the tipping point. From now on we are confident that future sales growth will translate into profit growth… we are aiming for, and look like achieving, sustainable sales growth.”

Majestic reiterated its target of £500 million in sales by 2019 despite a tough UK market.

Gormley is not expecting the price of wine to rise dramatically as a result of the weaker pound since Brexit — though he admitted that suppliers had already raised the issue.

The Virgin Wines co-founder said Majestic could mitigate price rises by moving bottling to the UK and taking out “dead costs” from the supply chain.