Londis profits jump to €4.6m

CONVENIENCE retailer ADM Londis saw profits rise by nearly two-thirds last year on the back of shop openings.

It said profits jumped to €4.6 million as wholesale turnover reached €336m. Turnover for the year was up 11.1%.

The company said the sales growth rate in 2005 was twice that of the previous year.

This reflected a rise in the company’s share of the Irish grocery market and was helped by the addition of 43 Londis outlets.

Speaking at the company’s annual general meeting in Dublin yesterday, joint chief executive Stephen O’Riordan said 2005 was an excellent year for the company.

“Our conversion to plc [public limited company] status has greatly benefited the business as is evident from our significantly accelerated sales growth and our increased brand presence in the marketplace, particularly in Dublin.”

He said retailers are choosing to become part of the Londis symbol group because they can own shares in the company and realise a market value for their holding.

“This unique positioning of Londis as a symbol group owned by retailers for retailers has worked very well for the group and, together with our superior trading terms, has helped us to recruit a number of high profile stores in the year.”

He said the grocery market is likely to become even more competitive this year because of expansion plans of the major supermarket chains and the abolition of the Groceries Order.

“As well as being competitive on price, Londis will continue to place a huge emphasis on added value, customer service and convenience, which is the cornerstone of our proposition for the market.”

Londis said its share price has risen 30% in the past year to €62.59 per share, its first year as a private plc.

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