Co-op Group weighed down by bank woes with loss of £132m
The Manchester-based Co-op Group saw revenue grow 3% to £9.5bn but the continued woes of its banking division saddled it with pre-tax losses of £132m during 2016.
Results to December 31 show a £74m increase in its finance costs due to changes in the value of its bonds and writedown of its 20% shareholding in The Co-operative Bank.
Like-for-like sales in its food business rose 3.5% and Funeralcare revenues grew 3% – the first increase in five years driven by a move to make funerals more affordable and a 69% increase in sales of pre-paid funerals.
Insurance delivered strong sales, up 28%, based on motor premium inflation, improved pricing and distribution capabilities.
Its operating profit of £148m (2015: £112m) was driven by a £20m profit on disposals, largely reflecting the sale of its crematoria and lower restructuring costs.
Underlying profit before tax was £59m (2015: £81m), down because of increased Rebuild investment.
Membership numbers stood at four million with 350,000 more already recruited for 2017.
Group chief executive Steve Murrells, said: “We’ve made great progress in rebuilding our Co-op, with all our businesses delivering strong performances.
“While much remains to be done, our Rebuild plans have really started to deliver value for our customers, our members and their communities. That is exactly what the Co-op should be doing.
“Against this backdrop, 2017 sees us turning our attention to the next phase of our development.
“Our ambition will remain the same – championing a better way of doing business in communities up and down the country.
“We will continue to take our existing businesses forward and ensure they are ready for the digital age, but we will also look wider than our current markets.
“We are exploring how we can enter markets that are not serving people well and challenging existing providers. To do that we are thinking again like the original Rochdale Pioneers.
“They were true pioneers in every sense of the word – disruptors in markets and agitators for change. There’s never been a more exciting time in the Co-op’s history and we are confident that we’ll continue to thrive.”
