Mea culpa. Due to technical failings (my inability to read a share-price chart correctly), the numbers in last week’s column on Majestic Wine were wrong.
And did I not get this pointed out to me fulsomely on Twitter?
For those who have yet to follow me on social media, Majestic’s then share price should have been 430p and the target at which I said I would toast new chief executive’s Rowan Gormley’s success is 480p.
But having talked to Gormley following yesterday’s results, I am more than ever convinced that even 480p may be a modest target.
He speaks with a refreshing lack of MBA nonsense and told it straight, saying it will take at least £3 million of investment and up to three years to turn Majestic around.
Business news in pictures - June 16
But basically this is a sound business and has a lot of potential.
In particular, Gormley wants to return Majestic to being the fun place to buy your wine — not as cheap as the supermarkets or as supercilious and expensive as the average wine merchant, but value for money if you are ready to spend £8 a bottle on something decent.
A bit less warehouse and a bit more customer loyalty rewards are also promised.
It will take time but Majestic shares (at 421p now!) are worth laying down for a few years.
