Bucking the malaise that retailers have so far reported after the all important Christmas trading period, wine retailer Majestic enjoyed an excellent improvement of 10.4% in like-for-like sales for the nine weeks to January.

Chief executive Tim How commented that wines from Bordeaux, Italy, Chile and New Zealand sold very well, as did Champagne. The shares rose to the 280p mark in anticipation of its trading statement but then fell 4.4% to 271p. As expected, chairman John Apthorp, who holds a 31% stake in the company is retiring, having reached the ripe age of 70. He will be replaced by current non-executive director Simon Burke, who was previously chief executive of the Virgin retail group and chairman of Hamleys. Analysts have forecast pre-tax profits to reach £12.9m for the year to March 2005, rising to £14m for 2006. While the prospective p/e of 21 is not exactly cheap, it is below the sector average of 25.14. Continue to hold.

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