Grocery wars casualty Nisa swings back into profit
SCUNTHORPE-BASED mutual Nisa Retail has undergone its “biggest swing in profit in its 39 year history” according to its chief executive, despite the continuing uncertainty in the convenience market.
Revenues for the retail consortium dropped from £1.4bn to £1.3bn for the year to 3 April 2016.
Overall 52-week sales fell 3.8%.
However operating profits of £600,000 brought back Nisa from the brink, compared to a loss of £5.4m last year. Full accounts are not yet available.
Last year the group lost £500m in revenue after York-based Costcutter reverted to a rival supplier.
It mentioned the collapse of My Local, a member and former Morrisons-owned chain which went into administration this week,
Nisa said that on 21 June My Local gave notice of its intention to go to into administration, but the company said that ” this was anticipated and no material loss is expected to arise after recovery of insurance proceeds and utilisation of provisions held at the year end.”
Nick Read, CEO of Nisa Retail Limited, commented: “It has been a challenging, but ultimately pleasing year for Nisa.
“The business experienced the biggest swing in profit in its 39 year history as we sought to stabilise the company, address historical issues and lay the foundations to return to profitable growth and build for it a sustainable business model.
“Nisa is now very much back on an upward curve, with the business having already seen a 3.5% increase in weekly sales in the first 12 weeks of FY17, and we are extremely positive about our future.”
