(MarketWatch) - Majestic Wine PLC (WINE.LN) Monday reported 75% drop in fiscal 2016 pretax profit, mainly due to a large non-cash charge relating to the acquisition of Naked Wines, and said trading conditions in the U.K. are expected to remain challenging.

For the year ended March 28, the wine retailer recorded pretax profit of 4.7 million pounds ($6.8 million), compared with pretax profit of GBP18.4 million in the year ago period, on a revenue of GBP402.1 million and GBP284.5 million, respectively.

Profit, before tax and exceptional items, totaled GBP15.0 million, down from GBP21.6 million. Non-cash charges relating to Naked Wines acquisition totaled GBP11.5 million.

Majestic Wine said it has withheld its dividend for the period and will implement a new dividend policy during fiscal 2017 interim results.