(Thisismoney) - Majestic Wine has reported a £1.5million loss this year as it continues with a bold overhaul.

The figure for the year to April 3 was down £6.2million from last year's £4.7million profit.

Underlying profits tumbled 29 per cent to £12.9million on surging costs from the overhaul which has sought to 'innovate and rationalise' product range, improve the in-store experience for customers and introduce a 'new and fair' remuneration scheme for staff.

Investors were left with a bitter aftertaste as shares fell two per cent to 375p in this morning's trading. 

But the group said it was past the financial tipping point as underlying earnings shot up 51 per cent in the second half as its turnaround started to bear fruit, with underlying sales growth of 12.1 per cent in the final six months.    

Majestic Wine warehouse chain saw like-for-like sales lift 5.7 per cent over the full year as it notched up eight consecutive quarters of rising sales.