NOVEMBER 2018

FINANCIAL REPORTS
Trading surplus up 10%
in Lincolnshire Co-op’s
full-year results
Total sales at Lincolnshire Co-operative
rose 5.4% to £329m for the financial year
to September 2018, the society says in its
annual report.
Group trading surplus rose 10.2%
to £17.7m, with 25 million customers
shopping in its stores or using its services.
The society opened 10 new outlets,
including food, pharmacies, travel and
a funeral home, thanks to a £25.7m
investment in capital projects which also
included new equipment, regeneration
projects and community investment.
Cash balances at the end of the 12
months were at £26m.
The co-op’s Love Local range had sales of
£3.2m, up £1m from the previous year. The
society works with 41 producers to bring
189 different lines to its customers. Overall,
sales in food stores rose 6.9%.
Investment in the travel business helped
a 3.5% rise in the number of passengers
booking holidays with the co-op, with
total sales up 5.4%. A new branch opened
in Retford, with teams in Grantham and
Tritton Road, Lincoln, relocated.
Around 9% more people invested in
Lincolnshire Co-op’s Funeral Plan, while
a new funeral arrangement office opened
in Caistor.
Lincolnshire’s pharmacy branches
outperformed the market, recording a 2.4%
prescription growth.
As members of the local Dementia
Action Alliance, the co-op has trained
567 colleagues as Dementia Friends and
delivered a further seven awareness
sessions on the condition.
The society’s membership stands at
285,813 – including 10,360 juniors – with
25,987 new members this year.
The board is recommending to members
that £4,131,000 is allocated to dividend,
adds the report. Already, £2,233,000 has
been paid out on purchases. The board
suggests members approve a dividend
bonus of 85p per £1 collected during the
year, a total of £1.9m.
The co-op raised £545,000 for the local
community, which was split between 234
organisations, including local community
groups, Prostate Cancer UK, the Royal
p Sydney Elston, Chloe Jones, Emma Relton, Kayleigh Wade and Lois Exton, colleagues from the
society’s new food store and pharmacy in Swineshead, volunteering at the local primary school
British Legion and the RAF Benevolent
Fund. Money also went to lunch clubs,
friendship groups and other charities
tackling social isolation. Around 600
people attended the society’s Community
Cuppa scheme, set up to tackle loneliness.
The society has been working with the
University of Lincoln to create the Lincoln
Science and Innovation Park, which has
given 12 high-tech businesses a base and
created local employment.
It has also partnered with local
construction firm Lindum to create
Strong half-year at Heart of England Co-op
Heart of England Co-op has reported
a 7.32% increase in like-for-like sales in
the 21-week period to 16 June.
Operating profit is up 6.7% on the
same period last year, standing at
almost £2.2m.
In its interim results, the society says
it faced a tough trading environment,
with uncertainty in the market
due to the slow progress in Brexit
negotiations and the falling value of
the pound.
However, in the food division, sales
rose by 7.27% over the 21 weeks.
The society’s Meriden and Allesley
stores achieved performances
above budget following their recent
investments – Meriden with its extension
and Allesley with its refurbishment.
The funeral division also recorded an
increase of 7.62% in like-for-like sales,
new housing with a joint venture, LC
Community Projects. Planning permission
has been obtained to develop the society
former dairy site in Pinchbeck. The society
is also providing space and back-office
support to East Midlands Community-Led
Housing (EMCLH).
Chief executive Ursula Lidbetter said:
“We’re delighted with our strong trading
performance, particularly in the current
tough retail climate. It’s not just about the
figures, though. I’m proud of all the ways
we make an impact in our community.”
and conducted 48 funerals more than
the same period in 2017.
The society’s net assets now stand
at £42.4m – an increase of 12.5% over
the same period in 2017.
Chief executive Ali Kurji said: “The
first half of the year has proved extremely
challenging and there is little doubt
that the second half will be equally
challenging due to the competition in
the marketplace and the impact and the
uncertainties surrounding Brexit.
“Despite the difficult economic
conditions, the society remains in a very
sound and strong financial position.”
He added: “The society has
continued to operate with positive
cash flow and the cash reserves will be
utilised for profitable projects as and
when required.”
u New HoE food manager: p11
6 | NOVEMBER 2018