Strong first half at United Co-operatives

Turnover and profits have risen sharply in first half trading at United Co-operatives, the UK’s largest regional co-operative.  With recent acquisitions expected to make a sizeable contribution in the second half of the year, the Society looks well placed for another record set of results in 2007.

Announcing the interim figures for the 26 weeks ended July 29 2006, Chief Executive, Peter Marks, said:  “I am delighted to report that our results for the first half of 2006 have been very strong, with particularly good performances being recorded by our food and health care businesses.  Despite tough trading conditions, turnover was up 8.6 per cent to £1.11 billion and profits were up 34.3 per cent to £27.9 million.”

In the Society’s Food Group, sales for the half year rose 16 per cent, to £507 million, with like-for-like sales up 5.4 per cent, well ahead of an industry average of 3.4 per cent.  The Society’s highly successful store refurbishment programme saw 80 projects completed in the period and this, along with highly competitive offers and increased availability, drove sales to their new high.

The impact of the Society’s major pharmacy acquisitions over the past couple of years was demonstrated in United’s Health Care business, where sales jumped 41 per cent to £131 million.  In the past three years the Group has grown from 129 pharmacies to 230 and this growth is set to continue with a target of 300 branches set.

In concluding his review of the first half performance, Mr Marks said: “In the first half of the year, capital investment was more than £140 million, almost three times the amount spent in the same period last year and well above the total figure for 2005.  In the past five years we have spent more than £450 million in building the business for the future and this latest set of results clearly shows we have the right strategy for delivering turnover and profit growth.”

Looking to the future, Mr. Marks declared:  “The first half of the year has seen a very solid performance from all our trading groups.  However, I fully expect trading conditions in the second half of the year to become tougher, with increased interest rates and energy costs putting consumer spending under further pressure.”