Majestic Wine, Britain's largest wine warehouse chain, today revealed it has seen off the recession after returning to sales growth and reporting better-than-expected profits for the first six months of its financial year.

Like-for-like sales rose 5.4 per cent in the six months to September compared to a 2.1 per cent fall in the same period last year. In the five weeks since the end of September, sales growth accelerated to 6 per cent.

The figures were well received by the market and its shares rose nearly 4 per cent, or 9p, in early trading to 254p.

The wine trader's fortunes contrast with rivals, Threshers and Wine Rack, whose parent company First Quench was put into administration last month. KPMG, which is acting as the administrator, is seeking a sale of the remaining 800 stores by the end of this month, after shutting down 373 sites.

Although a report released this January by Vinexpo said that Britain was the world's biggest importer of wines with 1.9 billion bottles imported in 2007, sales have since been hit by the recession and this June, Mintel said that wine sales had fallen by 2 per cent in 2008.

But Majestic specialises in the higher end of the market and has larger stores targeting bulk purchasers such as restaurateurs. At the start of September, it slashed the minimum purchase customers could make at its 150 stores from 12 to six bottles.

The growth in profit from £5.6 million to £6.1 million and in revenue from £94 million to £107 million, was helped by the acquisition of Lay & Wheeler, the fine wine specialist, in March.

Steve Lewis, the chief executive of Majestic Wine, said that a 6.9 per cent fall in sales from its stores to the recession-hit restaurant trade was offset by sales to private individuals rising 8.9 per cent.

He added: "I am pleased that, in the half year, Majestic has achieved profit growth of 9 per cent. It is encouraging that in the current economic conditions our loyal customers continue to find the Majestic proposition compelling." Mr Lewis envisages expanding to at least 250 locations in Britain.

However, he said that he remained "cautious" about the economic climate although the chain was "well positioned for the very important Christmas trading period".

Sales of fine wine also continued to increase with sales of wine priced at £20 or above rising by 14.4 per cent on last year.

The average bottle of wine purchased at Majestic was £6.41, slightly up on last year's £6.19, but the average spend per transaction eased from £135 last year to £133.

The group said that it was seeing good growth in "new world" wines from South Africa and New Zealand as well as from Spain and a surge in demand for sparkling wine as champagne sales decline.

Its stores in France, known as Wine and Beer World, designed to cash in on British customers taking "booze cruises" across the Channel, fared less well, with sales falling 32 per cent, to £33.6 million, hit by the strength of the euro. That brought profits from Wine and Beer World down from £414,000 last time to £187,000.

The interim dividend is being held at 2.8p per share.

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