Co-op members to share record dividend
THE five million members of the Co-operative Group are to share a record dividend of £50m, it was announced today.
The diverse mutual whose operations span from banking to farming and retail, has hiked its payout to memberd form £38.8m to £50.4m.
Members receive a cash payment based on the points they earn when they trade at any of the Group’s businesses, which include: The Co-operative Food; Travel; pharmacy and Funeralcare as well as The Co-operative Bank and The Co-operative Insurance.
Based on the group’s annual profit of £402m the value of each point earned during 2009 was 2p. The payments will be paid in the form of vouchers or into a bank account.
A slice of the total payout, £1.6m, will go directlyto local charities after more than one million members waived some or all of their dividend.
Patrick Allen, director of marketing at The Co-operative Group, said: “It is only right that our members, who ultimately own and control the business, share in our success.
“Last year was particularly successful for us. The trading group acquired Somerfield, CFS merged with Britannia and we launched the new The Co-operative brand with a high profile advertising campaign.”
“As a member the points quickly add up. Someone spending £20 a week in our food stores takes a £1,500 holiday with our travel business and buys a funeral plan would earn £85.80 in the course of a year.”
After two major deals in the last 18 months the Co-op is focusing on integrating Somerfield and plans to invest in its travel business, where it is looking to challenge Thomas Cook and TUI.
