According to the group’s latest financial results for year ending 1 April 2019, revenue grew +6.3% to £506.1m, boosted by Naked Wines which has seen success in the US.
The results stated that Naked Wines’ underlying revenue growth rate accelerated to 14.5% (FY18: 11.3%) and the US is now the biggest division with sales 21% higher year on year.
Majestic retail however, recorded losses of £8.5m before tax and according to group chief executive Rowan Gormley, Naked Wines has the greater potential for growth.
“We are at a crossroads in the Company’s history, said Gormley. “As laid out in March, we have taken the difficult but important decision to focus on Naked and exit from Majestic.
“As at the date of this announcement, our intention is to sell the business and we are at an advanced stage with multiple bidders. A further update will be provided if and when negotiations conclude at which point we will seek shareholder approval to move ahead.
“If we are unable to complete the process over the summer, in time for the important Christmas and New Year season, we will continue to run the two businesses independently of each other and look to restart the process in 2020.”
