NOVEMBER 2018

Chelmsford Star reports sales growth of 3.9%
Chelmsford Star Co-op has boosted yearon-year
sales by 3.9%, its interim report
for the 28 weeks to 11 August 2018 reveals.
Sales were up 4.4% on the same period
last year, while trading profit saw a 12.3%
year-on-year increase for the period to
£601,000.
Chief executive Barry Wood said the
results were driven by strong performances
in its core food and funeral businesses,
which had been impacted by investment
behind the scenes.
The Essex-based society’s food business,
including fuel, has recorded a year-on-year
increase in trading profitability of 10.84%,
while the funeral business enjoyed a year
-on-year growth in turnover of 31.9%.
But its Quadrant department stores
saw a 6% drop in sales, which the
society attributes to the decline in
the furniture business.
Mr Wood said: “For the first time in
five years, high street shop prices have
inflated. Couple this with the rise in
interest rates, and as we move into
the second half of the year, many of
us will find our disposable income
severely squeezed.”
Operating costs at the society
were also up by 3.93% as a results
of increased distribution costs associated
with the increased food turnover, the
unbudgeted two stores still operating in
the period, personnel cost pressures and
greater-than-anticipated increases in
energy prices.
During this period, the society raised
£77,912 for its charity of the year, Little
Havens Hospice, through lottery, raffles,
marathons, book sales and walks.
In May 2018 the conversion of £5.00 per
1,000 points was approved by members
interim
report & financial statements 28 weeks ended 11th August 2018
at the AGM. Looking ahead, the board
your local independent co-operative
says it remains confident in the society’s
business plan and capacity to deliver
it, in spite of inflation affecting the
retail market.
CCF announces increased number of loans
Ethical business lender Co-operative and
Community Finance (CCF) says activity
has been “steady” in its report for the first
half of 2018.
New lending totalled £367,000, with
£399,000 repaid to the organisation, it
said, while 10 new loans made during the
period benefited more than 1,500 people
in co-ops and community businesses.
Five of these new loans went to the
hospitality/community pubs sector, three
to creative/media and publishing, one to
environmental/food and farming and one
to consultancy/development/other.
Asked to rate their borrowing
experience, 76% of clients said it was
“very good” and 17% said “good”.
Business development manager Tim
Coomer said: “The first six months of the
year have been positive. We have seen a
slight dip in the average size of loan but
the number of loans is up against this time
last year. Summer has been unusually
busy for us, so we are expecting strong
borrowing for the next six months.”
CCF also announced the appointment
of new chair Jon Nott, who takes over from
Jo White, who stepped down after seven
years in the role.
Mr Nott, who began his involvement
in the co-op movement at Alleycat Books
p Jon Nott takes over as chair
Co-op in Durham in the early 1990s,
previously served as general secretary
of the Woodcraft Folk and was chief
executive of the Green Party. He said:
“I’m grateful to Jo White for her seven
years’ service as our chair, after which
CCF is in a strong position as we start our
10-year plan to simplify the structure
of our business and raise new capital to
enable us to offer even more support to
the sector.”
UK’s OMSCo dairy explores
international options
UK dairy co-op Organic Milk Suppliers
(OMSCo), which saw an average increase
of 1.65ppl (pence per litre) in member
returns for the financial year ending
31 March 2018, said it is exploring ways
to spread risk through international
market and product diversifications
after Brexit.
The US market will continue to
play a key role in the co-op’s longterm
business strategy. Already, 25%
of the milk produced by OMSCo has
been approved by the USDA for export
to the USA.
But the agreement could be in danger
should the UK government be unable
to secure on-going recognition of UK
standards and a mutually acceptable
future trade agreement.
“Dairy farming exports to Europe
will solely depend on whether there is
a hard, soft, or transitional Brexit,” said
chairman Nicholas Saphir.
“However, we continue to make
progress through government lobbying,
to ensure the mutual recognition
of standards with the USDA once we
leave the EU. The big challenge will be
to see this recognition with Europe by
30 March 2019.”
NOVEMBER 2018 | 7