Record profits for United Co-operatives

Peter Marks, United Co-operatives Chief Executive

United Co-operatives has announced record profits in 2006. The Sandbrook Park based group saw turnover increase by 5.5% and pre-tax profits rise by 76 per cent to £62.4 million. Net assets rose by 27.5 per cent to £406 million following mergers with Leeds and Sheffield societies.

Commenting on the results, Peter Marks, United Co-operatives Chief Executive, said: "Despite some of the toughest trading conditions for many years, all our core businesses recorded market-beating performances. Our results clearly demonstrate the benefit of bringing together the strong United Norwest and Yorkshire societies in 2002, to create an even more successful business.

"All six of our major businesses - food, travel, pharmacy, motors, funerals and cash in transit - made further progress in the year, with exceptionally strong performances coming from food and pharmacy. Funerals increased its profitability, while Travel and Sunwin Motor Group outperformed their respective markets in exceptionally difficult circumstances. The Society's Cash in Transit operation also continued its rapid growth, establishing a sound platform from which to become a national operation in the coming 12 months."

During 2006 United achieved its largest ever acquisition with the purchase of the Cheshire-based P Williams pharmacy chain of more than 50 branches.

Peter Marks said: "Since its formation in 2002 the Society has achieved tremendous results, with turnover up 32 per cent, profits up more than 120 per cent and with capital investment of more than £425 million in acquisitions, new developments and refurbishments. 

"We now have a very strong business with a sound balance sheet, good sales and profit growth, an excellent rate of return on capital, manageable borrowings and the talent and ambition to compete in very fierce market conditions," he added.

"We were also delighted during the year that the members of Leeds and Sheffield Co-operatives Societies backed mergers with United and the essential process of consolidation in the Co-operative Movement will be aided further if, as we hope, the members of both United and the Co-operative Group support the proposal to amalgamate our two societies."

The opportunity now existed, said Mr Marks, to create the largest consumer co-operative society in the world. This would, once again, be a coming together of two very strong and successful co-operative societies.

"The prospect created by the proposed amalgamation is of a rejuvenated Co-operative Movement, increasing its market share by delivering better stores, better value and better service to members and customers. This in turn would lead to increased profits for the new Society and would allow us to reward our key stakeholders - members, employees and communities," Mr Marks concluded.