Our half yearly update from the CEO…

Wednesday Nov 22, 2023

We are pleased to present an interim overview of our performance for the period of 28 weeks, up to 12th August 2023. Click on the image above to view CEO, Barry Wood’s interim update. 

As we navigate the ever-evolving retail landscape, we remain committed to transparency and providing insights into our progress and achievements…

Economic Background
In our last report to members covering the year-ending 28th January 2023, we referred to continuing challenges for the Society as we adjusted to life post-pandemic and a cost-of-living crisis that saw inflation rise to a 40-year high and interest rates reach a 15-year high. In addition, the ongoing effects of the war in Ukraine and its impact on energy and commodity prices have been felt across the business.

Despite the current economic challenges, your Board of Directors is comfortable that your Society continues to deliver acceptable results and has demonstrated its resilience in facing challenges when needed.

Financial
Your Society’s gross takings for the period under review totalled £59,034k, reflecting “year on year” growth of 1.7%. Unfortunately, we are currently in a position where every area of our business is falling short of budget on a year-to-date basis, with Travel experiencing the most challenges at the gross takings level.

Gross profit for the period under review amounted to £13,925k, representing “year on year” growth of 3.88%. Operating costs within the period totalled £13,816k, a £525k or 3.95% increase on last year. In the main, the cost areas that have continued to see increases in the period under review are energy costs, occupancy costs and legal/professional costs. The high increase in the National Living Wage in April has added further pressure to operating costs but has been well-received by colleagues.

At the end of the period under review, the Society has made a trading profit of £109k, a “year on year” decrease of £4k or 3.54%, indicating the Society is managing to hold its own in a difficult market, albeit the performance is slightly below the business plan.

Year to date, gross profit totalled £13,925k, a shortfall to the budget of £220k or 1.56% but grew “year on year” by £520k or 3.88%.

On a year-to-date basis, only Food and Fuel have managed to meet the budgeted gross profit at the end of the period under review

Looking Ahead:

We continue to remain vigilant of the challenges ahead. and are putting in strategies to mitigate them. We are optimistic about the future and committed to our members, stakeholders and colleagues.

We extend our gratitude to our dedicated teams, supportive stakeholders, and valued customers and members for their unwavering trust and collaboration in continually supporting us.

To download our Interim Report and our Members Magazine, please CLICK HERE.