RNS Number:1183S
Majestic Wine PLC
17 November 2003
                                                      17 November 2003


                                INTERIM RESULTS

                            'Pre tax profit up 42%'

Majestic Wine PLC ("Majestic"), the UK's largest wine warehouse chain with 113
stores, today announces its interim results for the 26 weeks ended 
29 September 2003



HIGHLIGHTS



*         Profit before the exceptional item, tax and amortisation of goodwill
          increased by 42% to #3.96m (2002 : #2.79m)

*         Total sales up 21.8% to #69.1m (2002 : #56.8m) with like for like UK
          Sales up 12.0% (2002 : like for like UK sales up 10.7%)

*         Significant increase in new customers to Majestic, number of active
          purchasing customers on the mailing list increased by 10.3% to 310,000

*         Interim dividend increased by 50% to 4.5p net per share (2002 : 3p net
          per share)

*         Trading in Majestic's three French stores in Calais, Coquelles and
          Cherbourg has been excellent, with first half sales growth of 21.7%

*         Five new stores opened in the period in Uxbridge, Wilmslow, St John's
          Wood, Kendal and Victoria.  In November, new stores opened in 
          Battersea, Cirencester, Enfield and Warrington.

*         Sales growth continues to be encouraging with like for like UK sales
          for the six weeks from 30 September to 15 November 2003 up 7.5%.



Commenting on the results Tim How, Chief Executive of Majestic, said:



"We are delighted with these strong financial results, and are confident that
the differentiation of our business from the competition, and the enthusiasm of
our people, will enable Majestic to continue to grow strongly in an expanding UK
wine Market."



For further information, please contact:
Tim How                                                Tel: 01923 298200
Majestic Wine PLC

Tim Thompson / Nicola Cronk                            Tel: 020 7466 5000
Buchanan Communications





Chairman's Statement



I am delighted to announce a further substantial profit increase for the first
half of the 2003/2004 financial year.  Profit before the exceptional item, tax
and amortisation of goodwill increased by 42% to #3.96m.



Total sales were up 21.8% with like for like UK sales up 12.0% which is very
pleasing as it is on top of 10.7% reported for the same period last year.  We
have seen good growth in still wine sales particularly from the Loire, Southern
France, South Africa, Chile and New Zealand.  Champagne, rose and beer sales
grew strongly, partly as a result of the excellent summer weather.



We continue to attract significant numbers of new customers to Majestic and
those on the mailing list who made purchases in the last 12 months were up by
10.3% to 310,000. The average bottle price of still wine purchased at Majestic
is #5.31 and the average spend per transaction at our stores is #104.



During the period we sold and leased back our freehold property in Putney for
#1.16m realising an exceptional gain of #396,000.



Wine and Beer World



Trading in our three stores in France in Calais, Coquelles and Cherbourg has
been excellent with first half sales growth of 21.7%.



New Stores



We have made good progress with new store openings.  Five new stores opened in
the period in Uxbridge, Wilmslow, St. John's Wood, Kendal and Victoria, and we
re-sited our New Barnet store.  In November we have opened new stores in
Battersea, Cirencester, Enfield and Warrington bringing the total number of UK
stores trading to 113.



The new store in St. John's Wood is twice the size of an average Majestic store
and incorporates a climate-controlled fine wine centre which stocks over 200
wines priced at #20 and above.  Customers can order these wines via any Majestic
store and through the newly launched fine wine section on our website
www.majestic.co.uk.  The store also has an improved sales counter layout and
re-designed tasting counter, which will be incorporated in all new stores.



Dividend



As a result of the continued strong trading and cash generation of the business
we are declaring an increased interim dividend of 4.5p net per share up by 50%
on last year.  The dividend will be paid on 9 January 2004 to shareholders on
the register at the close of business on 5 December 2003.



Non-executive Director


We are pleased to announce the appointment of Paul Dermody to the Board as non-
executive Director.  Paul was Chief Executive of De Vere Group Plc having
recently retired after almost forty years with the company.  Paul's experience
of leading a customer focussed business such as De Vere will be invaluable to
Majestic.


Awards



We are very pleased that for the second year running we have been awarded "High
Street Retailer of the Year" at the International Wine Challenge 2003 sponsored
by Wine Magazine.  We are also delighted to be able to congratulate six of our
managers who during November were awarded Wine and Spirit Education Trust "
Awards of Excellence" for outstanding papers in their Diploma examinations.



Current Trading



Sales growth has continued to be most encouraging with like for like UK sales
for the six weeks from 30 September to 10 November 2003 up 7.5%.  Sales at the
three stores in France for the same period were 19.7% higher than last year.



Looking Forward



We are confident that the differentiation of our business from the competition
and the enthusiasm of our people will enable Majestic to continue to grow
strongly in an expanding wine market.



John Apthorp

Chairman

17 November 2003



GROUP PROFIT & LOSS ACCOUNT

For the 26 weeks ended 29 September 2003



                                                         26 weeks           26 weeks            Year
                                                            ended              Ended           ended
                                                         29.09.03           30.09.02        31.03.03
                                                      (Unaudited)        (Unaudited)       (Audited)
                                         Note               #'000              #'000           #'000

Turnover                                                   69,143             56,753         125,675
Cost of sales                                            (55,748)           (45,541)        (99,957)

Gross profit                                               13,395             11,212          25,718
Distribution costs                                        (5,770)            (5,083)        (10,726)
Administrative costs                                      (3,978)            (3,573)         (7,116)
Rental income                                                 209                190             371

Operating profit                                            3,856              2,746           8,247
Profit on disposal of fixed assets          2                 396                  -               -

Profit on ordinary activities
before interest and taxation
                                                            4,252              2,746           8,247
Net interest payable                                         (79)              (141)           (274)

Profit on ordinary activities
before taxation                                             4,173              2,605           7,973
Taxation                                    3             (1,266)              (873)         (2,584)

Profit on ordinary activities after
taxation                                                   2,907              1,732           5,389
Dividend                                    4               (686)              (458)         (1,681)

Retained profit for the period                              2,221              1,274           3,708

Earnings per share                          6
Basic                                                       19.2p              11.5p           35.8p
Diluted                                                     18.4p              11.3p           34.8p

Underlying earnings per share
Basic                                                       17.8p              12.8p           38.2p
Diluted                                                     17.1p              12.5p           37.1p





GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the 26 weeks ended 29 September 2003


                                                        26 weeks           26 weeks          Year
                                                           ended              ended         ended
                                                        29.09.03           30.09.02      31.03.03
                                                     (Unaudited)        (Unaudited)     (Audited)
                                                           #'000              #'000         #'000


Profit attributable to the members
of the parent company                                      2,907              1,732           5,389

Currency translation differences on
foreign currency net investments                               3                 14             124

Total gains and losses recognised                          2,910              1,746           5,513






GROUP BALANCE SHEET
As at 29 September 2003




                                                              As at              As at             As at
                                                           29.09.03           30.09.02          31.03.03
                                                        (Unaudited)        (Unaudited)         (Audited)
                                          Note                #'000              #'000             #'000

Fixed assets
Intangible fixed assets                                       6,690              7,060             6,875
Tangible fixed assets                                        22,662             19,089            21,498
                                                             29,352             26,149            28,373

Current assets
Stocks                                                       26,336             24,267            20,832
Debtors                                                       5,556              4,520             4,425
Cash at bank and in hand                                      2,672                  -             4,567
                                                             34,564             28,787            29,824
Creditors:
Amounts falling due within one year                         (33,558)           (27,508)          (29,786)
Bank overdrafts                                                   -            (1,029)                 -

Net current assets                                            1,006                250                38

Total assets less current
liabilities                                                  30,358             26,399            28,411
Creditors:
Amounts falling due after more than
one year                                                     (2,574)            (3,938)           (3,265)
Provision for liabilities & charges                           (693)              (471)             (305)
Net assets                                                   27,091             21,990            24,841


Capital & Reserves
Called up share capital                      5                4,602              4,582             4,587
Share premium account                        5                5,046              4,716             4,766
Revaluation reserve                          5                   22                 22                22
Profit and loss account                      5               17,421             12,670            15,466

Equity shareholders' funds                   5               27,091             21,990            24,841



GROUP CASH FLOW STATEMENT
For the 26 weeks ended 29 September 2003


                                                               26 weeks          26 weeks              Year
                                                                  ended             ended             ended
                                                               29.09.03          30.09.02          31.03.03
                                                            (Unaudited)       (Unaudited)         (Audited)
                                                                  #'000             #'000             #'000

Net cash inflow/(outflow) from operating activities              3,140             (208)            11,424
Returns on investments and servicing of finance      
Interest paid                                                      (42)              (74)              (65)
Loan note interest and guarantee fees                                 -             (104)             (140)
Term loan interest                                                 (92)                 -             (184)
Interest received                                                    28                30               107
                                                                  (106)             (148)             (282)

Taxation
UK corporation tax paid                                         (1,060)             (938)           (2,449)
Overseas corporation tax (paid)/refund                            (278)                49                91
                                                                (1,338)             (889)           (2,358)

Capital expenditure
Payments to acquire tangible fixed assets                       (2,857)           (2,130)           (5,411)
Receipts from sales of tangible fixed assets                      1,171                20                23
                                                                (1,686)           (2,110)           (5,388)

Equity dividends paid                                           (1,219)             (830)           (1,285)
Net cash (outflow)/inflow before financing                      (1,209)           (4,185)             2,111

Financing
Issue of Ordinary Share capital                                      11               259               314
Receipt for exercise of share options satisfied by
QUEST                                                                 -                 -                25
Bank loan                                                             -             5,000             5,000
Repayment of bank loan                                            (700)                 -             (700)
Redemption of loan notes                                              -           (7,000)           (7,184)
Decrease in cash for the period                                 (1,898)           (5,926)             (434)







NOTES TO THE GROUP CASH FLOW STATEMENT


(a) Reconciliation of operating profit to net cash inflow/(outflow) from operating activities



                                                               26 weeks          26 weeks              Year
                                                                  ended             ended             ended
                                                               29.09.03          30.09.02          31.03.03
                                                            (Unaudited)       (Unaudited)         (Audited)
                                                                  #'000             #'000             #'000

Operating profit                                                  3,856             2,746             8,247

Depreciation charges                                                929               887             1,771
Amortisation charge                                                 185               185               370
(Profit)/loss on disposal of tangible fixed assets                 (11)                 3                 3
Increase in stocks                                              (5,504)           (5,781)           (2,346)
Increase in debtors                                             (1,131)             (717)             (622)
Increase in creditors                                             4,413             2,261             3,676
Increase in provisions                                              388               208                98
Deferred bonus payable by shares                                     15                 -               227
Net cash inflow/(outflow) from operating activities               3,140             (208)            11,424


(b) Reconciliation of net cashflow to net (debt)/funds



                                                               26 weeks          26 weeks              Year
                                                                  ended             ended             ended
                                                               29.09.03          30.09.02          31.03.03
                                                            (Unaudited)       (Unaudited)         (Audited)
                                                                  #'000             #'000             #'000

Decrease in cash                                                (1,898)           (5,926)             (434)
Redemption of loan notes                                              -             7,000             7,184
Amortisation of arrangement fees                                    (9)               (8)              (16)
New term facility                                                     -           (5,000)           (5,000)
Repayment of term facility                                          700                 -               700
Exchange differences                                                  3                 -               104
Movement in net debt                                            (1,204)           (3,934)             2,538
Net (debt)/funds at 31 March 2003                                   320           (2,218)           (2,218)
Net (debt)/funds at 29 September 2003                             (884)           (6,152)               320




NOTES TO THE INTERIM REPORT





1.         BASIS OF PREPARATION



The accounts of the Group for the 26 weeks ended 29 September 2003, which are
unaudited, were approved by the Board on 17 November 2003. They have been
prepared in accordance with the accounting policies set out in the Annual Report
and Accounts 2003.



The results contained in this statement do not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985.  The financial information for
the full preceding year is based on the statutory accounts for the year ended 31
March 2003.  Those accounts, upon which the auditors, Ernst & Young LLP, issued
an unqualified opinion, have been delivered to the Registrar of Companies.



2.         PROFIT ON DISPOSAL OF FIXED ASSETS



During the period the freehold of the site in Putney was sold for #1,160,000
realising an exceptional gain of #396,000.  The store has been leased back on
normal commercial terms.


3.         TAXATION



Taxation for the 26 weeks ended 29 September 2003 is provided at 33.5% on profit
on ordinary activities before the exceptional profit on the disposal of property
being the anticipated rate of taxation for the period.



4.         DIVIDEND



An interim dividend of 4.5p net per share will be paid on 9 January 2004 to
shareholders on the register at the close of business on the 5 December 2003.


5.         RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS


                                                                                    Profit &           Total
                                                     Share      Share   Revaluation     Loss   Shareholders'
                                                   Capital    Premium       Reserve  Account           Funds
                                                     #'000      #'000         #'000    #'000           #'000

At 31 March 2003                                     4,587      4,766            22   15,466          24,841
Share issue                                              1         10             -        -              11
ESOT share issue                                        14        270             -    (284)               -
Transfer to shareholders funds - deferred bonus
expected to be satisfied in shares                       -          -             -       15              15
Retained profit for the period                           -          -             -    2,221           2,221
Currency translation differences on foreign
currency net investments                                 -          -             -        3               3
At 29 September 2003                                 4,602      5,046            22   17,421          27,091






6.         EARNINGS PER SHARE



Basic earnings per share is calculated on profit on ordinary activities after
tax of #2,907,000 (2002: #1,732,000) apportioned over the weighted Ordinary
Shares that were in issue for the period: 15,150,045 (2002: 15,021,353).

The calculation of the diluted earnings per share is in accordance with FRS 14.
The weighted average number of Ordinary Shares in issue during the period has
been adjusted to take account of the effect of all dilutive potential Ordinary
Shares. The number of shares used in the calculation was 15,794,011 (2002:
15,391,729).



Underlying earnings per share is calculated on earnings, before charging
amortisation of goodwill arising on the acquisition of Les Celliers de Calais
S.A.S. and the exceptional profit on disposal of freehold property,
of #2,696,000 (2002: #1,917,000).  This alternative measure has been calculated
to allow shareholders to gain a clearer understanding of the trading performance 
of the Group.



7.         INTERIM REPORT



Copies of the Interim Report are being sent to shareholders. Further copies of
the Interim and Annual Report and Accounts may be obtained from the Company's
Registered Office, Majestic House, Otterspool Way, Watford, Hertfordshire, WD25
8WW. The Interim Report should be read in conjunction with the Annual Report and
Accounts 2003.




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