Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on MAJESTIC WINE PLC. We currently have 14 research reports from 3 professional analysts.
|01Dec16 05:29||RNS||Holding(s) in Company|
|30Nov16 07:00||RNS||Total Voting Rights|
|23Nov16 07:50||RNS||Director/PDMR Shareholding|
|21Nov16 12:50||RNS||Director/PDMR Shareholding|
|17Nov16 02:14||RNS||Director/PDMR Shareholding|
|17Nov16 07:00||RNS||Half Year Results|
|31Oct16 07:00||RNS||1250 Wines Now Available for Next Day Delivery|
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Research reports on
MAJESTIC WINE PLC
MAJESTIC WINE PLC
Another encouraging peak trading period but a long way still to go
10 Jan 17
As per our channel checks over Xmas, WINE duly delivered strong peak trading. Group sales +15.3% with the standout being +7.5% LFLs at Majestic Retail which represents c.90% of group trading profits despite very tough comps of +7.3% LFLs but at a big cost to the gross margin (we think c.50-75bps) given the highly price promotional UK wine retailing market. Management states that WINE is on track to be in line with full year expectations. We therefore nevertheless expect that FY17 PBT consensus of £11.3m will move to the top end of the current range (£10.7m - £12.4m) where our forecasts are struck. We have been consistently sceptical about the enlarged Majestic Wines/Naked Wines on a variety of levels. We continue to think that the restoration of the legacy Majestic Retail business to sustained growth, vitality and competitiveness will be highly protracted. Meanwhile, we think that Naked Wines has yet to prove its ability to grow both sales and profits simultaneously on a sustainable basis such is the financial model in online wine retailing based on customer lifetime values and the consequent criticality of customer acquisition and retention. Maintain HOLD as we expect forecast momentum to remain flat over the next 6 months, whilst we still struggle to agree with management’s contention that the WINE transformation plan is working such that it will drive a fundamentally different competitive position and a lasting step-change in WINE’s operational and financial performance.
Panmure Morning Note 17-11-2016
17 Nov 16
H1FY17 results are in line with the significantly downgraded (-c.24%) consensus estimates following the September 21 profit warning. Adj PBT of £0.1m reflects in large part strategic investment costs highlighted at the H1FY16 results. One year into its 3 year transformation plan, management strikes a confident tone around its plan being on track to “deliver sustainable growth”, highlighting that WINE is at a profitability “tipping point” post the heavy P+L investment phase. The reinstatement of the interim divi at 1.5p, cash conversion of adj profits (albeit materially reduced y/y), and good progress in the five KPIs (most notably customer retention) are supportive of such confidence. We still think, however, that the restoration of the legacy Majestic retail business (still c.90% of the enlarged group’s trading EBIT) to sustained growth, vitality and competitiveness will be highly protracted. Meanwhile, we think that Naked Wines has yet to prove its ability to grow both sales and profits on a sustainable basis such is the financial model in online wine retailing based on customer lifetime values and the consequent criticality of customer acquisition and retention. We use this note to update our stale forecasts to reflect both the effects of the September 21 profit warning and today’s in line H1FY17 results. Maintain HOLD.
Panmure Research - Majestic Wine Flash 07-01-16
07 Jan 16
In the wake of the recent H1FY16 results, the strategic update and the subsequent significant rebasing of consensus forecasts, in addition to our follow-up conversations with management and today's encouraging Xmas (10 weeks) trading update, we publish our new forecasts (struck in line with consensus estimates which we think will remain unchanged today) and move to Hold from Under Review and reinstate our previous Target Price of 320p. As such, we take a more neutral stance on the stock than our previous negative stance. This reflects the balance of (1) our continued reservations about a sustainable restoration in the fortunes of the legacy Majestic business resulting from the 3 year turnaround plan, and (2) our recognition of the potential source of forecast outperformance on a 3 to 5 year basis is Naked Wines. In short, we can see the payoff arising from better capital allocation in the future as the enlarged group moves more towards Naked Wines' capital-light/high ROI growth model, which should be positive for valuation metrics like EV/Return on invested capital.
Panmure Research - Majestic Wine Flash 16-11-15
16 Nov 15
We place our Sell recommendation Under Review as the shares (viz. Nov 13's closing price of 310p) have now gone through our Target Price of 320p. The shares are down 26% since we reiterated our Sell in our Sept 14 note and 34% since mid-August when we highlighted that the shares had risen, bafflingly, to such highs post the Naked Wines acquisition in April whilst the UK retail sector's hitherto strong relative 12 month stock outperformance started to fade over the summer. We think it necessary to await our 1-on-1 meeting with the CFO later today to better understand the financial implications of today's results/strategic review, and our 1-on-1 meeting with the CEO/CFO on Friday Nov 20 to better digest the strategic review before revisiting our investment stance.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Morning Song 12-01-2017
12 Jan 17
As anticipated, the second half has again been stronger than H1 and results will be broadly in line with expectations. In line with this, the order book has continued to grow and is at record levels. This confirms that significant progress has been made in the Group’s shift towards its Technology Products division which, as targeted, contributed c.60% of group revenue in FY16. The small acquisition of Cable Power also gives a complementary boost to the product range. It is also worth noting the significant reduction in net debt, £1.0m ahead of our forecast. We remain supportive of the Group’s strategy and continue to see a bright future as this transition towards a design led technology solutions business continues. We look forward to more detail in March at the final results.
N+1 Singer - Best Ideas 2017 - Top picks
04 Jan 17
Today we publish our Best Ideas for 2017 - 12 stocks that we believe have excellent prospects in the current year together with a detailed discussion of what we see as the key sector and market themes for 2017. Our top picks are Cineworld, Elementis, Herald Investment Trust, Hill & Smith, IQE, MySale, Redde, ReNeuron, RhythmOne, SDL, Servelec and Severfield.
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher
11 Jan 17
Joules Group (JOU): Strong festive trading (BUY) | Shoe Zone (SHOE): Tough FY16 could be just the beginning (HOLD) | H&T (HAT): Alternative lender emerging (BUY) | Omega Diagnostics* (ODX): ISO accreditation received for Pune, India (CORP) | Redcentric* (RCN): Interims – restoring forecasts (CORP)
A year of expansion
17 Jan 17
Final results are broadly in line with our revised forecasts on most headline levels in what proved to be a difficult year for the Group. That said, it has significantly increased room capacity, which is now +40% ahead at the time of the IPO (+14.5% yoy), which improves its competitive position and offering. We are maintaining our headline forecasts, and with the dividend expected to be held for the foreseeable future producing an 8.7% yield with a NAV in excess of 180p, we continue to believe there is strong long term value offered at present.