Majestic Wine reviews dividend as part of new investment plan
Source - SMW
Majestic Wine said it was reviewing its dividend amid a plan to invest more capital in its Naked Wines online business unit.
The company said a new focus on Naked Wind would also see it release capital from its retail and commercial operations.
The plan would involve accelerating new customer investment in Naked by an additional around £6m a year to £26m in the 2020 financial year.
Majestic Wind would also recognise largely non-cash restructuring charges of up to £10m in the 2019 financial year.
There may be further restructuring charges from the 2020 financial year onwards, but any cash outflow was expected to be largely offset by cash inflows from asset sales.
'We will review the dividend in June 2019 in light of the increased investment levels and transformation actions,' the company added.
Pre-tax profit for the year ending 1 April was expected to be around current consensus levels, the company said.
It also said it expected to achieve its £500m sales target for the year.
Naked continued to perform 'well', with growth in repeat customer contribution expected to increase by 10-15% on-year.
More details of the transformation plan were expected to be release in June.