Tamworth sees surplus climb despite ‘challenging’ year

  Tamworth Co-operative has reported a trading surplus of £704,000 for the year ended January 24. Chief executive Julian Coles said the society is making progress, despite the...

 

Tamworth Co-operative has reported a trading surplus of £704,000 for the year ended January 24.

Chief executive Julian Coles said the society is making progress, despite the lack of a dividend payment from the Co-operative Group in the year.

Mr Coles said the society had also paid an extra £145,000 in interest to bring pre-paid funeral bond values in line with current costs.

A disposal of assets generated a total of £866,000, added the chief executive. “The biggest of these was the sale of our shares in the Co-operative Group’s national pharmacy business which was bought by Bestway,” he said.

“While these gains have had a significant effect on the group revenue account, it needs to be borne in mind that they are one-off items. They contributed greatly to the total surplus before taxation amounting to a very healthy looking figure of £657,000 compared to £201,000 in the previous year.”

The results were dented by a depreciation in the value of the society’s fixed assets which amounted to £418,000. These impairment charges relate mainly to a drop in the value of the Society’s investment properties when compared to the previous year. The reduction in values carried across the year under review was £343,000.

A £500,000 increase in pension liabilities saw a charge in the revenue account of £219,000 as part of the plan to stabilise the situation over a number of years.

The increase in pension fund liability meant the overall balance sheet has dipped slightly from £11.9m to £11.7m.

Food accounts for nearly 80 per cent of the society’s business and that division continued to see the biggest changes. Two small convenience stores were sold in Stanton and Brownhills, while a flagship £1.5m store opened in Dosthill in March. The Glascote store will be relocated to impressive purpose-built premises on the site of the former Anchor Inn during the summer.

The funeral division performed well with sales up by 2.7 per cent on last year’s performance. While trading at the department store remains ‘challenging’, losses have been reduced by £55,000.

During the year the society handed out £10,000 to 16 worthwhile organisations as part of its highly successful Community Dividend Fund scheme. The donations were made to groups near each of its stores.

“The year under review was a busy one and we are now heading for what I believe will be an extremely exciting year for the Society given the major developments in the food division,” added Mr Coles.

“We look forward to including the two new stores in next year’s results. In broad terms we are pleased with the progress we are making, but we are cautious over the general state of the economy.

“Looking to the future, we will remain alert to any investment opportunities which are in the best interest of both our customers and members.  We will also continue to help the community we serve.

“Tamworth Co-op is an independent business which has long been part of the local landscape. We plan on being a household name for many generations to come.”

• This article has been replaced by an updated version. Due to a computer error, a previous report from 2014 was published on this page instead.

In this article


Join the Conversation