Iceland profits soar on expansion
NORTH West frozen food retailer Iceland has posted another year of record results, after stepping up its expansion plans.
The Deeside-based group, which operates 730 Iceland and 46 Cooltrader stores, said pre-tax profits had increased almost 20% to a high of £135.4m for the year to March 26 (2009: £113.4m). Sales increased 10.4% to £2.26bn (2009: £2.04bn)
The group ended the year virtually free of debt, despite increased capital expenditure of £54.5m (2009: £30.5m) as it stepped up its expansion programme.
The company opened 74 new stores during the year, including 51 ex-Woolworths sites, creating more than 2,500 new jobs.
The results mark the fifth year of strong growth since founder and chief executive Malcolm Walker returned to manage the business in February 2005.
Mr Walker said: “The key to our success remains simple: offering customers the best everyday value in frozen foods and for their daily purchases of grocery and chilled foods. Our range of frozen food remains unsurpassed in value, quality growth and innovation, and customers continue to appreciate the clarity of our round sum pricing policy – an Iceland innovation so successful that it has now been copied by many other food retailers.
“Iceland’s customer numbers have continued to grow, aided by the build-up of our
Bonus Card loyalty scheme which gives access to prizes, savings and our unique home delivery service. Store standards and customer service have again improved year on year, as measured by independent mystery shop results.
He added: “The UK food retailing market has undoubtedly changed over the last year, with competition becoming more aggressive than ever. Nevertheless, I am confident that our proven business model, strong finances, excellent products, outstanding service, loyal customers and committed staff will enable us to make progress in this challenging environment.”
