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(qlmbusinessnews.com via telegraph.co.uk – – Fri , 6 Apr 2018) London, Uk – –
The Co-operative Group returned to profit last year as it bounced back from a massive writedown of its stake in the Co-operative Bank and cost-cutting measures began to pay off.
The mutual, which runs food shops and funeral parlours as well as offering insurance and legal services, made a pre-tax profit of £72m in the year to January 6, up from a £132m loss the year before.
Its food revenues were flat at £7bn, but rose 3.4pc on a like-for-like basis, stripping out the impact of its decision to close larger stores.
Revenues from insurance, its second-largest division, slumped 25pc to £331m, but the Co-op said that was the result of changes to the way it recognises sales.
The previous year’s loss came after a £140m writedown of the group’s stake in its eponymous bank, which it has since sold. The troubled lender was bailed out by US hedge funds four years ago after it discovered a £1.5bn hole in its balance sheet. A second rescue deal last year saw the Co-op shed the last of its holding.
Steve Murrells, chief executive, said: “Today’s results show how much progress we have made. All our businesses have performed well and we have increased profits and reduced debt, while continuing to invest for colleagues, members and customers.”
Group revenues were flat at £9.5bn and the company said it had saved £16m by cutting back office costs.
By Jack Torrance
