Scottish SPAR wholesaler and retailer C J Lang & Son has reported growth in sales and underlying profits as it starts to implement its plan to improve performance after a difficult few years.
Over the 12 months ending 30 April 2019, the wholesale and convenience store business saw its turnover increase for the first time in four years, up 2.6%, to £187.9m. Margins also improved to 24.3%, from 23.9% last year, with underlying profits, before exceptional costs, increasing by 56% to £764,000.
However, the booking of a one-off cost of £1.6m, primarily to cover asset write-downs and lease charges due the closure of a number of loss making stores, resulted in the group posting a net loss.
C J Lang & Son’s CEO, Colin McLean, commented: “I am pleased to report the growth in turnover and underlying profit and it confirms that the very early stages of our strategy for growth, outlined last year, are driving positive change.
“Buoyed by last year’s good summer, our growth is a result of several key changes, including a focus on improving and implementing consistent store standards, the development of our independent customer base and improvements to our offer in order to meet the changing customer needs within convenience retailing.”
McLean added: “During the year we have had to take difficult decisions necessary to improve the profitability of our business and either disposed of or closed several long-term, loss making stores. Like many other retailers, we are also experiencing significant cost increases in a highly challenging retail market.
“We will continue to follow our strategic path, focussing initially on a back to basics programme, coupled with initiatives to improve our offer, attract more independent retailers to SPAR Scotland and to improve the profitability of our business.”
