2016 Year in Review

2016 in short

  • Some early signs of success
  • We are delighted with our new team
  • But this is a three-year plan, all of our big projects are at a very early stage and still have a long way to go before we see their effects.

Early signs

Reported Group revenue was up 41.3% (11.0% pro-forma). Due to the increased investment of £4.1m as part of our Majestic transformation programme Group adjusted profit before tax is 11.9% lower on last year on a pro forma basis, (-30.3% lower on a reported basis). Reported profit before tax of £4.7m was achieved after recognition of significant non-cash and one-off items. So the early signs are encouraging, but, this is the start of a three year plan – it is too early to say that it is working yet.

How are we doing in executing our plan?

In our view, these five Group Key Performance Indicators are the best way of measuring how we are doing in delivering our “deliver value by doing the right thing” plan.

We are in the process of embedding these across the Group, so there remain a number of “N/A”s in the table below which we will get populated in the coming months. However, as you can see, we have good progress in three of these in the Retail division. The one number that is going the wrong way is team retention. As we’ve said before we expect this to get worse before it gets better, as the changes we are making to the business bed in and staff decide whether the new Majestic is right for them or not.

Group KPIDefinitionMajestic RetailNaked WinesMajestic CommercialLay & Wheeler
Repeat customer retention% of repeat customers from 12 months ago that are still repeat customers, as measured from our customer databases68%
(FY15: 66%)
66%
(FY15: 64%)
80%
(FY15: 78%)
91%(1)
(FY15: 90%)
Product availability% of targeted range available in stores/on websites as indicated by our inventory reporting66%
(FY15: N/A)
N/AN/AN/A
Team retention% of key staff (e.g. store managers) as of 12 months ago still working per payroll records75%
(FY15: 78%)
N/A(2)81%(2)
(FY15: N/A)
76%
(FY15: 84%)
Wine quality (Buy It Again ratings)% of “Yes” scores in the last 12 months as recorded by websites/appsN/A
(FY15: N/A)
89%
(FY15: 88%)
N/AN/A
Proportion of 5* service ratings% of service ratings scoring 5* in last two months as recorded by websites/apps/telephone feedback86%
(FY15: N/A)
90%
(FY15: 86%)
N/AN/A
(1) Cellar Circle only
(2) All staff