Co-op profits up by 85 percent

Co-operative showed profits

The Co-operative group have seen an 85 percent rise in pre-tax profits, after the acquisitions of the Somerfield supermarket chain and the Britannia building society.

Co-op's divisions rose 31 percent to GBP£13.7 billion over the year. Profit before payments to and on behalf of members – the equivalent of pre-tax profits at a traditional public limited company – rose 85 percent to GBP£402 million. Like-for-like sales at the supermarket division rose by 5.5 percent over the year, reports the Telegraph.

The excellent results mean the dividend payment to the Co-op's customer members increased by 16 percent to GBP£55 million.

Aquisition of Somerfield

By aquiring Somerfield, the Co-operative became the fifth-largest supermarket behind market leaders Tesco, Asda, Sainsbury's and Morrisons. The Co-operative now has 3000 stores, which has aided in its profit.

"It has been a historic year – our food division has acquired Somerfield and our financial services division has bought Britannia. One would be enough, but to do both is great. There has been a lot of change," said Co-op's chief executive Peter Marks.

"Integration is always a challenge but we are very happy. We are halfway though. I have always said that with integration, you have to do it at speed."

In competition with other large retailers, the Co-operative now has only one UK postcode that doesn't have a store situated in it (Buckingham Palace Road in London), which is some achievment and means it covers more postcode's than Tesco, which has a total market share of 30 percent.

Between them Tesco, Asda, Sainsbury's and Morrisons have a combined market share of 75.6 percent. The Co-operative has a market share of 7 percent.

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