Majestic Wine share price: what to look out for in its full-year results

The British specialist wine retailer has shifted its strategy to focus on growth opportunities in Naked Wines with hundreds of stores set to close to strengthen its subscription business.

Majestic Wine Source: Bloomberg

When is Majestic Wine’s results date?

Majestic Wine will release their full-year results on June 13.

Majestic Wine results preview: what does the City expect?

Like many retailers, Majestic Wine has opted to reorient its business away from the high street in favour of online, specifically around subscription-based sales.

Its new direction was made public in late-March, with the company stating that it plans to focus the business on the significant growth opportunities in Naked Wines, which it acquired in the second quarter of 2015.

To finance its growth strategy, the group is releasing capital from its Majestic retail and commercial operations, with the plan to sell all 200 stores.

Activist investor, Gatemore Capital, has thrown its support behind the plan to offload its entire retail business which will raise approximately £100 million.

‘Naked Wines has the potential for strong sustainable growth, and we will deliver the best results for our shareholders, customers, people and suppliers by focusing all our energies on delivering that potential,’ Group CEO Rowan Gormley said.

‘We also believe that a transformed Majestic business does have the potential to be a long-term winner, but that we risk not maximising the potential of Naked if we try to do both,’ he added.

Investors are no doubt eager for an update on how this transformative strategy is progressing, with Majestic Wine likely to provide further clarity in its full-year results later this month.

Little appetite for bricks-and-mortar retailers

Despite Majestic Wine remaining open to exploring all options for releasing capital from its retail and commercial assets, Liberum analyst Wayne Brown told the Financial Times that a straight sale ‘has always been the cleanest outcome and the one that maximised value for both sides of the transaction’.

The boutique investment bank valued Majestic Wine’s retail unit between £130 million - £150 million but noted that the group should be willing to accept a lower offer of around £100 million considering that there is a lack of appetite for bricks-and-mortar businesses.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

See an opportunity to trade?

Go long or short on more than 16,000 markets with IG.

Spread bet and trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.