Co-operative Group swings to profit in 2017

The Co-operative Group said on Friday that it swung to a profit in 2017, after taking a hit the previous year from the writedown of its stake in Co-operative Bank.

The group posted a full-year pre-tax profit of £72m versus a loss of £132m in 2016. On an underlying basis, pre-tax profit rose to £65m from £52m thanks to an improving business performance and further reductions in the cost base.

Revenues were stable at £9.5bn, with food sales flat at £7.1bn, reflecting the impact of its strategy to close larger stores.

Wholesale sales to independent societies were up 7% to £1.7bn while funeral and life planning revenues rose 4% to £343m, supported by growth of the Simple Funeral offer.

Meanwhile, gross written premiums were 3% higher at £496m and the company's debt fell to £775m from £885m in 2016.

Chief executive Steve Murrells said: "Today’s results show how much progress we have made. All our businesses have performed well and we have increased profits and reduced debt, while continuing to invest for colleagues, members and customers. The success we are enjoying shows that the Co-op’s difference really resonates today - a different ownership model and a different approach to business, based on returning profits to our members and their communities.

"We’re delighted with our performance, but we’re hungry for more and ready to create the Co-op of the future. Whether it’s in our existing business areas or through new ventures, we want to make the Co-op ever more competitive, relevant and innovative. That is why we are launching the Stronger Co-op, Stronger Communities plan. To really succeed as a Co-op we need to be even more successful commercially and our community efforts need to be concentrated on the things that matter to people. We are going to deliver more Co-op products and services to more people throughout the country and that is what will really allow us to spread our difference."