Shares in Majestic Wine rose seven per cent in morning trading after the group said it had more than doubled its profits in the full year ended 29 March.
Majestic Wine said that its total sales increased 15.6 per cent to £233.2 million during the year, while like for like retail sales in Britain rose 8.4 per cent.
Pre-tax profit rose 117 per cent during the year to £16 million. The group said that its final dividend would be 7.5 pence per share taking its total dividend for the year to 10.3 pence per share, up 5.1 per cent from the previous year.
Majestic said that reducing its minimum purchase from 12 to six bottles had led to a fall in average spend per transaction by four per cent to £129. However this was more than offset by a rise in customer numbers from 54,4000 to 472,000 and transaction numbers up 14.6 per cent to 1.7 million.
Online sales at Majestic increased 19.7 per cent during the year, taking online sales to 10 per cent of all of Majestic's retail sales in Britain.
In the last year the company said it had opened six new stores, taking its total number of stores to 153 in Britain.
In the first ten weeks of the companies new financial year, started 30 March, like for like sales were up 7.3 per cent.
Steve Lewis, Chief Executive of Majestic Wine, said, "We are very encouraged by our ability to attract new customers which will allow us to continue to grow our market share. While the UK economic outlook remains uncertain, we believe that Majestic is well positioned for future growth."
The group's Chairman, Simon Burke, also said that he would be stepping down at Majestic's AGM on 6 August 2010, he is to be replaced by Phil Wrigley, who is currently serving as a non-executive Director on Majestic's board and as Chairman of Habitat Plc.
By 09:47 shares in Majestic Wine were up seven per cent to 289.50 pence per share.