Majestic toasts profit rise
Increase in Magnum bottle sales encourages investor confidence
by Abi Moses on 26th November, 2017
With Christmas spending starting to take its toll on the bank balances of big brands, November and December are popular months for spread betting activity; especially with regards to share prices. This week, we have seen a lot of activity around Majestic, reporting an increase in profit during the first half of the year. Encouraging investors to view the company as a safe trade, the company shares rose by more than 8%, also hiking its dividend by 2p a share.
Releasing a series of statements with regards to the growth of the company, Majestic's boss, Rowan Gormley, says it's now time to ramp things up a gear. Saying that he will now put his 'foot on the gas', many analysts are predicting big things for the coming six months of trade. With 210 wine stores across Britain, as well as a handful in France, the brand has reported profitable growth despite the tough market conditions.
Gormley told City A.M.: "There's an assumption that Majestic is a boring old retailer that's not going anywhere, but we can build the customer base and build customer loyalty."
"The supermarkets have retreated to the cheap end to compete with Aldi and Lidl, so there's very few people looking after the people who want to spend £6-£10 a bottle, which is largely who we cater for."
Expecting the next six months to tell a similar story, the company's big plans seem to be much more that a polished PR gimmick. Gormley in particular is eager to roll out a 'franchise-like model', seeing branch managers become partners next year.
"Two years in and profits are growing, our foundation is solid and we are ready to accelerate growth. We have the opportunities to invest in new customers and a team excited to focus on what they do best. It's time to put our foot on the gas" he continues.
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