Wine warehouse chain Majestic Wine has reported a 3.4% increase in full-year pre-tax profit to £16.7m on sales up 3.1% at £197m.

Like-for-like sales for the year to 31 March rose 2.4% and sales were boosted by a 25% increase in fine wine sales, which now represented 4.2% of UK retail sales, Majestic Wine said.

Some 45 of Majestic's 145 stores had a dedicated fine wine display area and display areas would be added to a further 10 stores this year, the retailer said.

The average price of a bottle of wine purchased rose from £5.75 last year to £5.98, while average spend per transaction increased from £123 to £133.

“Although the consumer environment is challenging, Majestic has a clearly differentiated retail model and is well positioned for future growth in this highly competitive market,” said outgoing CEO Tim How.