We expect consensus profit before tax expectations to fall around five per cent to £24.5m due to lower en primeur sales in 2013. The macro-outlook remains uncertain in 2013, however the excellent long term structural growth story remains intact and the rollout story should protect earnings if the macro worsens. We reiterate “buy”.
Good figures from Majestic, driven by strong growth in all the major metrics and an excellent increase in the final dividend of 22 per cent. We believe that Majestic has significant market share opportunity as it builds on its position as the UK's pre-eminent specialist wine retailer. We see many years of highly visible profit growth.
Whilst the current trading backdrop is challenging and consensus forecast are likely to move closer to our bottom of the range pre-tax profit of £23.9m, we remain positive over the medium to long term. Overall sales will benefit from last years increased opening programme and margins are likely to be supported by the fall in the euro.