Co-op reports solid results in "a year of consolidation"

Friday 19 May 2017

The Channel Islands Co-operative Society has reported a strong trading performance in 2016 in what Chief Executive, Colin Macleod, described as a “year of consolidation."

The total turnover figure for the Society in 2016 was £172.05m, which is 1.96% up on last year.

Its food business saw an 2.6% overall increase in turnover, and medical services by 7.7%.

An increase in online sales saw Homemaker report a 4.8% fall in turnover, while Travelmaker saw a reduction in the amount of cash passing through the business of 4.7% due to a marked reduction in foreign currency exchange.

The amount returned to members through dividend in 2016 was £7.8m.

Mr Macleod said: “The Society continues to be an incredibly successful business, which is driven by the commitment of my colleagues and also the support of the communities we serve. We have seen a period of incredible change but I am delighted that we have been able to deliver an increase in turnover”.

In its annual report, which was discussed this week at Annual Members’ Meetings in Guernsey and Jersey, Mr Macleod also highlighted the impact of Brexit.

“Towards the end of the year, we were faced with an unprecedented level of supplier demand for price increases following the currency market reaction to the Brexit vote. I am really pleased that we managed to stave off many of these, although protecting members from the impact of these increases has come at the expense of net profitability,” said Mr Macleod.

“That said, our focus on the foundations of the business and making conscious decisions to invest in our future, whilst protecting member benefit, will stand us in good stead to take the Society forward.”

The report highlights the changes that the Society, which employs more than a thousand people across the islands, is making to enable it to deliver its vision.

Mr Macleod said: “To make a real difference to the communities we serve is a compelling vision statement which will drive our strategic and operational activity for many years to come. Having received the resounding support of our Members on the direction we are taking for the future, we have started to invest in the people and systems that would be required to take us on that journey. Bringing our legacy IT systems up to modern standards, reviewing our ways of working, investing in and responding to Member requests for even more community focus by building a dedicated team and providing a community van to support that direction, were examples of areas of focus in 2016.”

The Society’s £16m Charing Cross development, which will create 70 jobs once completed, is said to be progressing well.

The site will include a new Co-operative Locale store, retail unit and a 93-room Premier Inn Hotel. The new store will add to the Society’s growing portfolio of convenience stores and will be designed to meet the changing needs of customers, focusing on fresh food and ‘food to go’.

Mr Macleod added: “After an unprecedented period of diversification and growth, 2016 was also a year where the Society applied considerable effort and investment into integrating its new pharmacy and medical businesses, whilst ensuring we had the right risk frameworks and processes to support our much larger business.”