Financial results from Tamworth Co-operative show its pre-tax surplus was up 36% on the previous year. The bottom line figure for the year ending 25 January 2014 rose from £147,000 to £201,000.
Chief executive Julian Coles was pleased with the progress, but viewed the future with “guarded optimism”. “Tamworth Co-operative Society remains a profitable company having again made very reasonable progress amidst a tough economic backdrop,” he said.
He added that changes in the society’s accounting process, most significantly transfer of its property assets from a separate subsidiary into the main society, make it difficult to compare like with like.
And the year under review comprised 52 weeks compared with 53 weeks the year before. “The overall figure for takings is £21,884,000, which is down on the previous year’s total of £22,085,000,” said Mr Coles. “If you factor in the effects of that extra week there would have been an increase.”
Impairment charges of £121,000 also had an impact; particularly the writing down of the value of the society’s investment properties, which fell by £81,000 to £6,630,000.
The society’s pension fund deficit rose to £7,097,000 from £6,903,000. Despite this, the society recently agreed to reduce the period over which it will clear the deficit.
The food operation accounts for almost 80% of the total revenue and last year the society continued to invest in it, most notably at its Whittington convenience store. “On a like-for-like basis, our food operation recorded an increase against the prior year of 0.7%,” said Mr Coles.
“We also made a significant investment in the computer systems at all our food locations. This has improved checkout speeds and made our management of product ranges more efficient. These improvements also paved the way for a new dividend card, which is now in operation.”