THE Co-operative Group hailed record annual results – but warned that a return to “real economic growth” could still be a year away.
Revenues rose by 31% to a mammoth £13.7bn last year as the Co-op’s grocery arm absorbed the former Somerfield chain and banking business Co-operative Financial Services merged with the Britannia.
Chief executive Peter Marks said it had been an “historic year” but warned the waters ahead are “still choppy”.
He said: “It may be that the UK does not start to see real economic growth until the end of 2010 or as late as the beginning of 2011. Therefore, sustaining the level of success we have enjoyed over the last two years will not be easy.”
Profits before payments to members soared by 85% to £402m over the year.
Mr Marks said the Co-op’s food and financial services businesses would enjoy the benefits of greater scale over 2010 as the mutual steers through a fragile recovery in the economy.
The Co-operative’s grocery arm, which is the UK’s fifth biggest food retailer with several stores across Huddersfield and 3,000 outlets UK-wide, lifted like-for-like sales by 5.5% in 2009 – achieving 16 successive quarters of sales growth.
The addition of Somerfield helped food revenues surge by £3bn to £7.5bn. Stores which have been modernised or rebranded reported a 12% rise in sales.
Operating profits at the financial business, which owns brands such as online bank Smile, rose by 21% to £177m as the group benefited from its merger with the Britannia to create a “super-mutual”.
The deal helped push up customer deposits to £32.5bn during the year. Customers were also drawn to the mutual model after the crisis which hit several mainstream shareholder-owned banks.
Other businesses in the group fared less well. Revenues slumped at the Co-op’s travel business amid the recession while the motor dealership posting a loss.
