Co-op members share profits increase

The East of England Co-operative Society yesterday unveiled a big increase in profits and announced that its 520,000 members would see an increase in their dividend payments.

The group, which is the third largest independent consumer co-operative in the country and the largest independent retailer in East Anglia, recorded profit growth of 11.4pc to £9.7m in the year to January 26, with sales up 5.3pc at £441m.

The growth was driven primarily by the society's food retail business, which showed an increase in like-for-like sales of 3pc.

Annual meetings held in Norwich, Ipswich and Colchester this week approved an increased total dividend of £4.28m.

Chief executive Richard Samson, pictured, said: “This is an excellent result in what was undoubtedly a challenging year.

“I am extremely pleased that we will be distributing more than £4m in dividend to our members across the region, equating to 2.5pc of qualifying purchases, compared with 2.1pc last year.

“Once again we anticipate being one of the leading major UK consumer co-operatives in terms of the dividend level awarded to members, who are the ultimate owners of the society.”

The society, which is debt-free, invested more than £18m during the year. The development programme included the acquisition and integration of a significant regional chain of convenience food stores, together with an ongoing building, refurbishment and rebranding programme.

In other developments, the society's Sterling and Fleming motor dealerships in Norwich and King's Lynn have been rebranded as East of England Co-operative Motor Group dealerships, and the society has withdrawn from milk distribution and production, with the distribution business sold as a going concern to Dairy Crest in February.

“We are financially sound and we are all working hard to build an

even stronger platform for

future profitable growth,” said Mr Samson.

The East of England Co-operative Society has more than 200 shops across the region. Its diverse business activities include food stores and supermarkets, department and home stores, jewellery, travel, pharmacy, optical and funeral branches, petrol forecourts and motor dealerships.

Courtesy of EDP

16 May 2008