£17m profits corker as Majestic defies rivals

Economic gloom may be swirling, but the champagne corks are still popping at Majestic Wine.

Britain's biggest wine warehouses chain fended off fierce competition from the supermarkets to lift profits for the year to the end of March by 3.4% to £16.7 million. Sales were up 5.1% to £197 million, although that was partly because of inflation.

Tim How, the outgoing chief executive who has made it his mission to take the snobbery out of wine, says he is leaving the business in good shape.

He admits the consumer environment is "challenging" but believes there are enough wine hobbyists - as well as purchasers of the occasional case - to ensure Majestic survives the downturn.

The latest buzz surrounds New Zealand Sauvignon Blanc, a tipple that has replaced Australian white as the favourite for summer parties. Champagne sales continue to rise.

How, who has been chief executive for 19 years, will be replaced by chief operating officer Steve Lewis at the next annual meeting.

Wine fans are growing increasingly comfortable with ordering online - internet sales are now 7.9% of Majestic's total.

Majestic, which joined AIM in 1996, is paying dividends this year of 9.8p, a rise of 15%.

The company now has 145 stores in the UK.