Londis reports 20% profit hike
ADM Londis plc, one of the leading retailers in the country, has reported a 20% jump in pre-tax profits to €6.1m as a result of more store openings in 2007.
The good set of results for the year up to December 31, 2007 was made on a wholesale turnover of €371m, which was up 4.5%. The group also announced that its shares are now valued at €85.04 each, an increase of 7% on the April 2007 valuation.
The group added 35 new stores in 2007 and now represents a network of more than 370 stores with a combined turnover of €761m.
Stephen O’Riordan, joint chief executive, said last year witnessed a rise in competition, highlighted by the significant surge in the pursuit of market share by the symbol groups across Ireland.
ADM Londis say they will continue its growth and aims to add an additional 40 new stores over the course of the next 12 months. This growth comes on the back of a big €15m spend on strategic acquisitions in Connaught and the Midlands during its first 12 months of operation.
The group also recently announced an agreement with Texoil, suppliers to Texaco petrol station, which will see ADM Londis’s forecourt presence swell to more than 100 locations throughout Ireland.
The Texoil announcement will also result in the creation of an extra 300 jobs and add an additional €50m in retail turnover for ADM Londis over the next two years.
ADM chairman Leo McCauley said the early indicators were that 2008 will be an even more competitive environment with retailers facing downward pressure on prices, combined with rising interest rates.
Mr McCauley said the group was well up to facing these challenges, adding: “We will be shortly rolling out new store formats which will place Londis at the cutting edge of premium retail offerings.”
ADM Londis is the only Irish symbol group where retailers can own the company through share holdings and realise the value in their shares at market price.
