New outlets have been opened in:

Bath Bearsden Beverley Darlington Haslemere Preston Wokingham

"Wine, however, especially the New World Australian and Chilean varieties, are doing exceptionally well," Mr How said.

Overall wine sales were up 8% in the seven weeks to mid-November.

Majestic said its customers spent an average of �102 per transaction in the first half, with the average bottle price for still wine standing at �5.36.

The firm has 93 stores, of which four were opened in the first half and a further three since September.

Shares under pressure

Mr How said Majestic was aiming at expanding to 150 stores nationwide, which would be financed through cash flow.

The group has no debt.

Majestic's shares have been under pressure in 2000, losing about one third of their value.

However, they were unchanged in mid-morning trading on the Aim market, standing at 247.5 pence.

A modestly increased interim dividend of 2.1p a share has been declared, up from 2p last time.