Majestic Wine has more than doubled its profits in the past year, helped by reducing its minimum order from 12 bottles to six.

Pre-tax profits increased by 117% to £16m in the year to March, while sales were up by 15.6% to £233.2m.

Like-for-like sales were up 8.4% for the period.

The group said the number of customers to have made purchases increased by 54,000 over the year to 472,000, with numbers boosted by the move to a six-bottle minimum purchase.

Average spend per transaction was down 4% to £129 but there was strong growth in transaction numbers, up 14.6% to 1.7 million.

“We are very encouraged by our ability to attract new customers which will allow us to continue to grow our market share,” said chief executive Steve Lewis. “While the UK economic outlook remains uncertain, we believe that Majestic is well positioned for future growth.”

Last month Majestic had predicted its results would be “at the upper end of analysts’ expectations”.

Read more
Majestic expects revival to continue (18 May 2010)
Majestic chair Burke to call it quits (26 January 2010)
Majestic celebrates double-digit Christmas sales hike (6 January 2010)
Majestic sticks with minimum six-bottle order (21 November 2009)

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