Majestic Wine's profits have fallen, turning to a loss after a previously profitable year.

The wine retailer, which has stores in Cheltenham, Gloucester, Cirencester and Stroud, posted a £200,000 loss in the six months to 1st October, a big turnaround from a £3.1 million profit in the previous year, as reported by Retail Gazette.

The retailer now expects its full year earnings to be flat at best. Investment to expand its Naked Wines online retail division is expected to hit profits further.

Majestic Wine said it was stockpiling between £5 million and £8 million of extra stock, due to supply chain fears post-Brexit.

The company said its plan for the current year was to accelerate growth by investing in new customers and that plan is currently on track.

Last year, revenues rose 2.3 per cent in the year to 2nd, while pre-tax profits surged 33.3 per cent.