UK: Cost savings boost Nisa FY profit
- Profits reach GBP3.8m
- Sales grow 4.2%
- Nisa recruits Semichem into membership
Nisa announced it will make a “record” payment of GBP4.6m to the group’s members in the form of surplus
UK retailer Nisa has booked an increase in full-year profit driven by cost savings, the signing of a distribution deal and development of the retailer's symbol operations.
Nisa reported a profit before tax of GBP3.8m (US$5.9m) in the 12-month period, up GBP1.7m on the previous year.
Sales amounted to GBP1.58bn, up 4.2% on last year, while cases delivered through the company's central distribution services again broke through the 108m mark, it said.
Scunthorpe-based Nisa announced it will make a "record" payment of GBP4.6m to the group's members in the form of surplus and a further GBP350,000 in dividend payments.
In addition, Nisa has announced the recruitment of the Edinburgh-based health and beauty retailer Semichem into its membership. The company brings its entire store portfolio into the group to benefit from the greater buying power available through Nisa.
Through its membership of Nisa, Semichem will have access to around 12,000 product lines, allowing the company to increase its impulse offering to its customers as well as providing a range of promotions every three weeks.
Nisa announces record turnover and surplus distribution to members
Scunthorpe based retail group Nisa has announced that it will make a record payment of £4.6 million to the group's members in the form of surplus and a further £350,000 in dividend payments.
The surplus and dividend payments follow a successful period of trading for the company despite challenging industry conditions. At a time when many retail businesses are failing, Nisa announced that it has achieved record turnover of £1.58billion, up 4.2% on the previous year. It also reported increased profits for this period - £3.8 million profit before tax, up from £1.7 million the previous year - while cases delivered through the company's central distribution services again broke through the 108 million mark.
Surplus distribution is in recognition of the support and loyalty shown to Nisa by its members through the company's central distribution service. The dividend payment equates to £8 per share and rewards members for their shareholding, whilst also encouraging members without the maximum 100 shares to take up their remaining share entitlement.
Simon Webster, Nisa's finance director, commented: "Despite the company being faced with a number of challenges this year, such as members selling out to multiple operators, the business has shown its resilience and has achieved pleasing sales and volumes figures for the 2011/2012 financial year. As a result of this we are once again able to reward our members with a significant surplus and dividend payment."
Nisa has continued to show growth in sales and volume, despite a major change to the business structure when the wholesale element of the company, the Today's Group, separated in January 2012.
The success of the company over the course of the year can be attributed to a range of factors including a record breaking level of new member recruitment, fantastic trading opportunities driven through cost savings following the company's new distribution contract with DHL, and continued, robust development of the group's symbol operations, which launched a second fascia option targeting smaller store formats this year, and now accounts for over 31% of the company's sales through central distribution.
Simon added: "The fact we operate on a low profit margin which is passed back to our membership, demonstrates our unique focus on creating benefits to members rather than to the central business or profits for external shareholders."
Original source: http://corporate.nisaretail.com/pressoffice/generalpress/recordsurplusdistribution
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