Majestic Wine is expected to report a solid performance at its interim results on Monday.

Oriel Securities said its small upgrade and reiterated buy recommendation are based on three key reasons: the switch to a six-bottle minimum purchase from 12 has increased frequency so that overall sales have improved; the trend that shoppers are buying more premium product; and that sterling’s weakness has been offset by improved buying.

The broker expects Majestic to maintain like-for-like sales up 2% and profit before tax for the year of £14m.

House broker Investec expects stronger like-for-like growth of 2.9% and interim profit before tax of £6m. Analyst David Jeary said: “While Majestic is unlikely to benefit materially from the potential demise of Threshers, it remains well placed to retain and increase its strong competitive position.”

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