Somerset-based Radstock Co-op has reported an operating loss of £147,000 for the year to 28 February, a slight improvement on the previous year’s deficit of £186,000.
The retail society added that it had seen modest growth in turnover, to £48.2m (2024/25: £46.8m). Gross profit also increased slightly to £13.6m (2024/25: £13.0M).
It said the overall financial result for the year stands as a deficit before tax of £991,000 (2024/25: surplus £1.95m), reflecting continued cost pressures, particularly in labour and overheads, alongside the costs of disruption to trading following the cyber attack on the Co-op Group.
“Importantly,” wrote CEO Don Morris in the report, “net current assets, including cashflow, remain positive and the society has continued to meet all bank loan repayments as they fall due reducing amounts outstanding.”
Morris added the year “has been one of resilience for the society characterised by a challenging and volatile trading environment, with pressure on consumer spending, rising operating costs and increased competition across the sector.
“The year began with positive momentum, supported by strong trading performance and a solid financial position. However, trading performance was significantly impacted by the Co-op Group cyber incident, which disrupted product availability, reduced sales and created operational challenges across the business.
“The society responded quickly, maintaining trading continuity through alternative local supply arrangements and strong operational management. Members will note an exceptional item in our revenue account for the year of £652k, directly relating to additional distribution costs and a significant level of management resource that was necessary to navigate the impacts of the incident.
“Following this disruption, trading stabilised but remained below budget expectations for much of the year.”
Performance across the retail estate has been mixed, added Morris, with some stores delivering strong results and others suffering from increased competition.
The opening of a new store in Wincanton (pictured) “represents an important strategic step, with a record number of new sembers joining the society,” he said.
Meanwhile the co-op’s dairy farm in Hardington “has continued to perform well operationally, with strong milk yields and good herd performance”, and has delivered a surplus at a time of soaring costs. The society’s property division has also delivered a profit.
Morris said the society has continued to invest in its infrastructure and long-term resilience, including capital investment in IT equipment and the retail estate.
“Progress has been made across the society’s development pipeline and discussions are ongoing with potential partners for various sites including the former Radco redevelopment.
“Looking ahead, the society remains focused on navigating a challenging environment whilst positioning itself for long-term sustainability. Whilst external pressures are expected to continue, the business retains a strong balance sheet and asset base, clear
strategic direction and a committed team.”
Membership of the society continues to grow, with 3,455 new members joining since March 2025.
The report also highlights the co-op’s support for the community, including chosen charities the Air Ambulance and Lilly’s Foundation who received a donation of £1,100 each, alongside a wide range of smaller donations to local schools, community groups and charitable initiatives across its trading area.
