The company plans to spin off the Majestic Retail and Commercial arm and focus on its Naked Wines brand, which has a “greater potential for growth”.
In the year to 1 April the group’s revenue grew 6.3 per cent, driven by the Naked brand, which grew 14.5 per cent.
Read more: Elliot launches bid for Majestic Wine stores
The company swung to a £8.5m loss, compared to a profit of £8.3m in 2018.
Adjusted profit before tax fell 34.5 per cent, from £17.2m to £11.3m and adjusted earnings dropped 33.8 per cent, from £18.3m to £12.1m.
Why its interesting
Yesterday it was reported that activist investor Elliott had launched a bid for the company, taking on private equity firms Opcapita and Fortress.Majestic is hoping to make £100m on the sale.
The company said that if does not complete a sale over the Summer it will continue to run the Majestic and Naked businesses separately through the Christmas period, before restarting talks in 2020.
Majestic suspended its final dividend, saying it would be replaced with a special dividend on completion of the sale.
What Majestic said
Group chief executive Rowan Gormley said the company was at a “pivotal moment”.
“We are at a crossroads in the company’s history,” Gormley said.
“As laid out in March, we have taken the difficult but important decision to focus on Naked and exit from Majestic.
“As at the date of this announcement our intention is to sell the business and we are at an advanced stage with multiple bidders.”
He added: “Majestic Wine started life with a disruptive model that challenged the status quo. Now is the right time to do it again under the Naked brand.”