MAJESTIC Wine plc, based in Watford, saw a record year as sales rocketed by more than 20 per cent.

Pre-tax profits for 1997 doubled to more than £1 million for the half year ending in September.

This profit windfall triggered further growth in the company as it opened seven new stores across the country in 1997 and has plans to continue its expansion over the year.

Shareholders have also got a reason to celebrate as the company's share prices have risen substantially since Majestic Wines was floated on the alternative share market in November 1996.

Shares were sold at £1.60 on flotation and by the end of last year these soared to £4.075 per share.

The company awarded shareholders with an interim dividend of 1.6 pence net per share on January 9.

Chief executive of Majestic, Tim How, said: "There is great potential for further growth at Majestic.

"Sales from the seven weeks to 17 November have continued to grow strongly, with total sales up 21.2 per cent and like for like sales up 11.8 per cent.

"Early response from customers to our Christmas promotions has been most encouraging.

"We have also seen a continuing trend for our customers to buy better quality wines."

This rate of growth is also reflected in its Bushey Heath branch, which opened three years and has seen a big rise in profits.

Mr How said: "We are delighted that the branches are doing so well and we base their success on the knowledgeable staff and good customer service that ensures they come back time after time."

The report from Majestic also shows a rising trend in the average price per bottle paid for wine at Majestic, which is up from the previous year's £4.63 to £4.88.

Majestic said Claret sales had doubled.

Mr How said: "This is because people are willing to spend more money on quality wines as they are becoming more aware of the enormous choice available."

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