Costcutter posted a slight dip in FY profits

Costcutter posted a slight dip in FY profits

Directors of UK convenience retailer Costcutter are optimistic despite posting a drop in full-year profits.

In the year ending 30 April, the company had an operating profit of GBP103m (US$161m), compared to GBP106m in the same period in 2010. Sales rose from GBP609.5m last year to GBP632.5m this year, even in the face of what the company described as "strong competition in the convenience sector".

A statement from the company's director's report said: "The economic climate continued to affect independent retailers and as a result store losses remained at an unprecedented level. However, store recruitment was good throughout the year. At the year end the number of stores in the group had risen to 1,566 - a net increase of 30."

Looking forward, the company said it would make "every effort" to help retailers improve their business.

In November the company was bought by Bibby Line Group, which operates a diverse portfolio of business including logistics, shipping, marine manufacture and financial services. A spokesperson called the convenience retail sector an "excellent long-term prospect" at the time.