Majestic Wine WINE appears to have been so mismanaged that it has been forced to issue an update, warning that it will not even achieve its modest target of 1% sales growth for the current year. EBIT for the year to 3rd April 2017 will be £2m.less than market expectations as a result of the first half having been more challenging than expected. Sales growth is flat and gross margins % is down by 200 basis points. That dreaded event, an internal review, is said to be underway.
Naked Wines in the US will move back back into loss as a result of new initiatives which did not work and which are having to be abandoned. The company claims that test and learn in a market the size of the US, is expensive but most companies would learn, at least something first and test later. Majestic however did the opposite and then management wonders why it has got the company into a pickle. Perhaps there should be an internal review at a higher level.
Diageo DGE has started 2017 well and performance will be stronger than last year claims the company, with key drivers being scotch, US spirits and India.
SAGA plc SAGA Everything about Saga’s first half has been robust, especially the interim dividend which is being raised by a robust 23%. Travel has put in a robust trading performance, the operational performance has been robust, as has the financial performance. Hopefully the CEO will be given a robust lesson in how to vary his adjectives a bit, next time round. Profit before tax rose by 8.5% for the six months to 31st July and like for like basic earnings per share were up by 8.2%. All this was achieved despite a competitive environment and the company is on track to meet its full year targets.
32Red TTR is raising its interim dividend by 18% for the half year to 30th June after profit before tax modestly surged by 2,630% following a 63% rise in total net gaming revenue. Both revenue and EBITDA rose to record levels, with strong growth across the business and its brands. Growth has continued into the second half and on a like for like basis it is up by 4%.