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Majectic Wine

July 2013

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.

  • Epic Code:
  • WINE
  • Price:
  • 475p
For the year to end March, Majestic reported sales down from £280m to £276m after it withdrew from wholesale trade. The latter was supplying containers of wine to wholesalers and chief executive Steve Lewis said their decision to exit this stems from the fact that it was relatively low margin whilst the group’s larger size meant it was also better off selling the wine into their store estate. Pretax profits despite that headwind increased by £0.5m to £23.8m although eps were flattish at 26.9pThere are four parts to the Majestic story. First, says Lewis is ongoing expansion of the store estate. 16 units opened in FY13 to take the estate to 193 units and the underlying rhythm should see the same number ...

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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.

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