Lincolnshire Co-op has announced its interim results for the six months to 7 March, with sales down 1.2% on the previous half year.
Earnings before tax, depreciation and amortisation (Ebidta) was £54.m, down from £8.3m the previous period.
Net assets “have remained strong at £302.7m,” the report adds, “providing a strong anchor for our current and future investment plans.”
In a report to members, CEO Alison Hands said the sales figures were 3.8% behind budget, but the society is “slightly ahead” of its budgeted Ebidta – “though there are risks to maintaining this throughout the year”.
She added: “The main area of sales underperformance is in food, but uncertainty around the war in the Middle East also causing people to delay or cancel travel bookings, which will have an impact on trading the rest of the year.”
Other areas of concern, said Hands, include bakery Gadsby’s which will feel the impact of its wholesale partner going in to administration, and the post office business which continues to make a loss but “is a key service for our local communities which we subsidise”.
Healthcare is seeing growth through pharmacy, with performance up by 2.5%, which is ahead of budget, which Hands credits to strong service delivery, specifically with flu vaccinations.
The funeral business also shows strong profit growth, said Hands, helped by cost control, and the society’s property arm continued to perform well, accounting for 58% of overall Ebitda.
Meanwhile, the society has had an insurance settlement for the business interruption caused by the cyber-attack on the Co-op Group.
Personnel costs continue to rise, with increases to National Living Wage and National Insurance.
“For most of our colleagues – equivalent to approximately 95% of our workforce – a pay rise averaging 3.79% has been approved this year, with these colleagues getting a pay rise of at least 50p per hour,” said Hands.
“Going forward, we will need to maintain our rigorous attitude to costs and as ever, it is key that across all our activities, we weigh up profitability and long-term sustainability, alignment with our purpose, and our overall balance sheet.
“Our total net assets have remained strong at £302.7m, providing a strong anchor for our current and future investment plans.”
Hands said the society had been working to deal with economic pressures from an uncertain geo-political situation, disruption from the cyber attack and a tougher convenience market to “focus on long term financial security”.
Lincolnshire has made “foundational investments” through its Purpose Beyond Profit Strategy 2030, and continues to develop new areas of business in healthcare and housing, which, said Hands, “will contribute to the planned upwards trajectory in trading profitability in the coming years”.
Investments include new shelf-edge tech, card payment devices and self-service tills, alongside upgrades to it and cyber security, a new store at Donington and a refresh for 10 other stores.
Community work includes efforts to develop local social enterprises. “We’re already working with Chain Bridge Forge in Spalding, a living forge and heritage site,” said Hands. “We’re recently led a workshop with 20 budding changemakers looking to develop their ideas for wider social gain and we’re looking forward to supporting more organisations in the future.”
The society also has a foundational partnership with Horizon Youth Zone in Grimsby which opened late in 2025, and continues to develop community support programmes, including Wellbeing Walks and Community Cuppas. “the role we play in our communities is integral to why we exist,” said Hands.
