Central Co-op has published its interim review, with financial headlines including gross sales of £486.1m, down 8.6% from the same period last year from continuing operations (August 2023: £532.1m).
The society also saw a 33.8% fall in underlying trading profit from £6.5m to £4.3m this year. Meanwhile, net debt went up by 28.2% to £-26.3m, from £-20.5m reported in August 2023.
“We continue to operate in challenging times and our thoughts are with all those who are living through conflict, poverty and political unrest around the world,” CEO Debbie Robinson said in the review.
Fallilng price inflation had impacted the value of the society’s food sales, she added. Similarly, the decline in the death rate has reduced the number of arrangements for the funeral division, driving a
-£2.9m adverse impact on the trading profit.
Also impacting the result was the closure in January of the society’s distribution centre, which accounted for £33.3m in sales to other societies in the first half of the last financial year.
Robinson also attributed the increase in net debt to the society’s continued commitment to capital investment, adding that this remained well within its debt facility of £50m.
She added that the society’s net assets reflect a reduction in stock from the distribution centre closure but are broadly consistent at £270.7m compared to last year (2023: £273.1m).
This year the society also underwent an HMRC Business Risk Review, which provided it with an overall “low” risk rating, improving on the “moderate” rating received last year.
Capital expenditure of £11m allowed Central to open two new food stores, regenerate 15 food stores
stores and four funeral homes, said Robinson.
The society continued to roll out digital shelf edge labels, invest in colleague safety and further solar panels, she added, “reflecting our short to medium-term ambition of being energy self-sufficient. In total, we are committed to investing £42m in our growth plans for this financial year.
“Members, customers and our colleagues are at the heart of our decisions and following our strategic review with external consultants OC&C, the society is focused on delivery of its five-year plans for food, funeral and property,” she said. ‘We have significant opportunities to increase productivity across our business as we look to delivering our purpose of creating a sustainable society for all.”
The society will also be celebrating the International Year of Cooperatives in 2025, said Robinson. “We are already thinking about how our society can play its part in 2025 and celebrate its own achievements with both the local and global communities that we are able to support thanks to the loyalty of our customers and members,” said Robinson.
One venture is a new International Co-operative Development Fund (ICDF), she added. This is set to be launched in the UK later this year. “Our society will be a founding member of this fund which will see co-ops working together in solidarity to support co-operatives around the world in times of crisis and need, but also to support long term co-operative development overseas.”
She added: “We believe that our own strategy, which is guided by founding co-operative values and principles and made relevant for members today, allows us to be positive about the future as we head into this special year. We are surrounded by difference-makers with the power to work collaboratively to seize opportunities and face any challenges head-on. I’d like to thank each and every colleague for their hard work and commitment to make a difference to our members and customers every day.”
As with other retail societies, Central is continuing its efforts to tackle crime and other social issues.
“We are committed to playing our part in responding to anti-social behaviour and knife crime in the communities we serve,” said Robinson.
The society is making further investment in defibrillators and bleed kits, she added. Central has spent
more than £695,000 in recent years and a further £67,500 on annual maintenance costs “so that more than 297 of our food and funeral branches are able to provide these critical services at a time of need.
Central Co-op trades in over 21 counties, operated food stores, petrol stations, florist shops, funeral homes, coffee shops and a crematorium.
