ADM to focus on its core business

STORE group ADM Londis said it wants to put takeover speculation behind and concentrate on its core business.

Having knocked back a €35 million offer from wholesalers BWG Group, ADM told its shareholders yesterday that the offer was not in the financial or strategic interests of the group.

The company told shareholder at yesterday's annual general meeting in Enfield, Co Meath, that it was now going to focus on its own development.

ADM Londis reported a near 14% increase in annual turnover to €294 million for 2004.

Pre-tax profits, before rebates to store owners, increased from €7.8 million to €8.6m.

ADM joint chief executive Stephen O'Riordan said he was pleased by the sales growth as it was a "very competitive" year for the retail sector.

He said the company had made progress on integrating its two businesses Londis and Londis Topshop with a new brand image was devised to enhance the corporate identity and consolidate the merger between the two formats and the market they share.

He said a new brand identity Londis Plus was being introduced and this will be applied to stores with a floor space above of 5,000 sq ft that are competing in the supermarket sector.

"We are currently enjoying improved synergies following the acquisition of Londis Topshop. This has resulted in even more efficient operations and greater bargaining power from both a buying and marketing point of view, and will ultimately benefit all concerned."

Londis employs more than 4,500 staff throughout its 300 stores nationwide and it planned to open a further 30 stores this year creating 600 new jobs. The company added that 12 of these stored had already been opened.