UK: Preliminary statement of results – stability established; platform for the future created

Somerfield plc today announced its results for the 52 weeks ended 28 April 2001. The key points are:

• Breakeven operating result; second half operating profits offsetting first half losses
  
  
• Attributable loss of £6.6 million, compared with a loss of £14.6 million last year
  
  
• Strong balance sheet with net funds of £0.3 million, compared with net debt of £90.3 million last year
  
  
• Full year like-for-like sales decline for Somerfield –2.6% and Kwik Save –7.1% but significantly improving trend
  
  
• Quarter 4 like-for-like sales for Somerfield +1.8% and Kwik Save –0.9%
  
  
• First 8 weeks in the new year, like-for-like sales growth for Somerfield +6.2% and Kwik Save +3.8%

John von Spreckelsen, Executive Chairman, comments:
“The improving performance towards the end of the financial year has created stability. This has been achieved on the back of improving like-for-like sales and a return to modest operating profits in the second half. Our balance sheet has strengthened further, with a net cash position at the year end. Somerfield and Kwik Save fascia stores had both returned to like-for-like sales growth as the year closed and this has been maintained into the new financial year. The decision to operate two distinct fascias has been the right one. The challenge is to maintain the current momentum, driving sales forward, so that over time we return to a healthy level of profitability.”