The Co-operative Group has revealed record half-year profits at the end of a period in which it purchased Somerfield for £1.56 billion.
Manchester-based Co-op reported that its profits before payments to members increased by 60.5 per cent in the 28 weeks to July 26, to £197.6m, and also posted an increase in pre-tax profits to £103m. Net revenues rose by 25 per cent to £5bn, while net debt was trimmed despite a £100m store revamp programme.
In the food retail business, sales jumped 43.5 per cent to £2.4bn, and trading profits surged 67.7 per cent to £126m. Like-for-like sales were five per cent higher - representing an 11th consecutive quarter of sales growth.
The group employs 85,000 people and operates 4,300 shops, including convenience stores, travel agents and pharmacies, across the UK.
Its trading statement said it is reaping the benefits of the merger of the Co-op Group and United Co-operatives last year.
Chief executive Peter Marks said: "This has been an exciting half year for the Co-operative Group as our rejuvenated food business led a strong performance by the trading group."
Marks described the deal with Somerfield as “transformational” and expressed particular pleasure that the group has turned in results at a time when a lot of work was being put into the takeover process.
"These results show that we are continuing to make huge strides within the trading group, in spite of all the changes going on in the business," Marks said.
The Somerfield deal is awaiting approval from the Office of Fair Trading, and a decision is expected in the next month.
Analysts are expecting the Co-op to get the green light - although 100 larger Somerfield stores, of its 880 shops, may have to be sold.
