Wine warehouse chain Majestic today posted its eleventh consecutive year of record profits and said trading remained strong in 2004.

Majestic, which has 115 stores, said pre-tax profits of £10.6 million were 27% higher than a year ago.

New customers helped to lift like-for-like sales by 10% to £148.3 million during the year to March 29, outpacing the UK wine market which is growing at 6%.

Chief executive Tim How said this trend had continued into the new financial year with same-store sales ahead by 8%.

Majestic, based in Watford, Hertfordshire, has been further boosted by its store opening programme, which it believes could result in 175 UK outlets.

"I believe that Majestic is in a good position to continue to grow strongly in an expanding wine market," Mr How said.

Growth is also being targeted in sales of fine wines following the opening of a distribution base in St John's Wood, London, which can stock more than 200 different brands.

Mr How said the average bottle price of still wine purchased at Majestic was £5.40, more than a third higher than the market.

Sales of wines costing more than £20 grew by 29% during the year and now account for 1.6% of total sales in the UK.

The company expected this share to double over the next couple of years as it taps the drinking habits of affluent customers around the country.

Monday June 14, 2004