ADM Londis profits up 35%

Irish wholesale and retailing group, ADM Londis has reported a 35% rise in pre-tax profits for 2013, with like-for-like turnover rising by 1%.

The group — which has more than 200 Londis- branded shops in Ireland — said yesterday that pre-tax profit amounted to €1.67m as of the end of last year; up from €1.23m at the close of 2012.

Despite the challenging market, the group’s management said 2013 was “a very successful year”, with the substantial profit hike, rising margins and enhancements to its buying power, marketing execution and capital structure.

Late last year, ADM announced it had joined the purchasing consortium Stonehouse — which includes Gala and Costcutter — allowing it to compete better with bigger retailers. A buyback of 40,000 shares boosted the value of the group’s ordinary shares by 19% and management is seeking shareholder approval to extend the buyback this year.

A further seven new stores also opened last year and these are expected to have a positive impact on group turnover this year.

“Whilst overall retail sales are showing some growth in 2014, it will take some time before this is reflected in grocery market performance,” warned ADM Londis chief executive Stephen O’Riordan.

“We expect to see very little improvement in household finances in 2014, suggesting that consumers will remain acutely conscious of day-to-day spending. Notwithstanding, the group is beginning to see the trading benefits of new stores recruited to the group in 2013, and this has been further underpinned by our new partnership agreement with the Griffin Group [which recently switched from Musgrave to ADM Londis] post year-end, ” he added.

ADM Londis’ net debt fell from €3m to €1.1m last year, while total shareholders’ funds increased by 7% to €20.4m and a dividend of 25c per share has been proposed for 2014.

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