Booths defies downturn as profits rise
FAMILY-owned North West supermarket chain E H Booth & Co defied the recession to increase sales and profits in the year to April 4.
Chairman Edwin Booth said the company could be proud of its performance “during some of the most difficult trading conditions that I can remember.”
The Preston-based company, founded in 1847, operates 26 supermarkets in Lancashire, Cumbria, Yorkshire and at Knutsford, Cheshire.
Despite experiencing a “significant downturn in customer spending” last autumn, as in Mr Booth’s own words shoppers were “spooked” by the severity of the economic downturn, sales rose 4.3% in the year to £254m. Stripping out the impact of new stores like-for-like sales were up 0.6%.
Pre-tax-profits rose 8.7% to £7.5m as the group saw its interest payments fall by £628,000 in the second half of the year. Operating profits were flat at £9.7m.
During the year Booths, which announced recently it is in talks over opening a store at MediaCity, invested £14,7m on its store portfolio, opening in Ripon, Yorkshire and Garstang, Lancashire and refurbishing the Knutsford shop.
Booths. which employs around 3,000 staff, said it had had to fight the recession by introducing more value ranges, and this has paid off this year.
Mr Booth, whose great, great grandfather and name sake founded the business, said:”Customers expect more than ever from their Booths and I believe that the company is positioned well to provide excellent food and drink at increasingly competitive prices in future years.”
He said the worst of the recession looked to have passed but said he expects the trading environment to remain tough for some time.
“Despite this, business has been strong with sales growth in excess of 7% year-to-date. The growth is supported by good profit margins and a continued focus on prudent housekeeping.”
Mr Booth said like-for-like sales are up 5.2% so far this year.
Regarding new stores he said work should begin at Hesketh Bank near Southport early in the new year with a view to opening in November.
Another Lancashire store, in Barrowford near Nelson, should begin in “late spring”, while fit-out of the MediaCity shop will being late next year, with a view to opening in June 2011.
