Majestic, the warehouse wine retailer, is profiting as customers buy more expensive vintages in bulk to drink from home, bucking the consumer slowdown seen elsewhere in the wake of higher interest rates.

The group, which has 136 stores in the UK, reported full year pre-tax profits of £16.2 million, up 14.1 per cent on a year earlier, ahead of analyst forecasts.

It added that like-for-like sales since April were up 4.9 per cent — matching the pace of growth set a year earlier.

David Stoddart, the Teather & Greenwood analyst, said: "This year has started well, showing the enduring appeal of the brand and business model in a growing market."

Sales of fine wines — priced at £20 and above — increased 25 per cent and now accounts for 3.6 per cent of UK retail sales, Majestic said.

The retailer currently has 28 stores with dedicated fine wine sales areas and by Christmas Majestic expects to have extended this to 40.

The price of the average bottle of wine purchased at Majestic is now £5.75, up from £5.59, while the average spend per transaction has increased to £123, from £118 a year earlier.

Majestic added that the number of orders placed on its website continues to show significant growth, up 35 per cent in the year and now accounting for 7.2 per cent of UK retail sales.

However, the group's French Wine and Beer World operations continued to struggle, with like-for-like sales down 5.2 per cent.

Shares in Majestic were up 1 per cent or 4.5p in early afternoon trade, at 384.5p. The company increased its total dividend by 21.4 per cent to 8.5p.

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