This article is from the source 'independent' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.independent.co.uk/news/business/news/cooperative-group-posts-record-25bn-loss-after-disastrous-year-9266617.html

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Co-operative Group posts record £2.5bn loss after 'disastrous year' Co-operative Group posts record £2.5bn loss after 'disastrous year'
(35 minutes later)
The Co-Operative Group has reported a record annual loss of £2.5 billion after suffering the worst crisis in the organisation's 150-year history. The Co-operative Group has reported a record annual loss of £2.5 billion after suffering the worst crisis in the organisation's 150-year history.
The food-to-funerals group posted a £148 million operating loss in the year to 4 January, down from a £142 million operating profit the prior year.The food-to-funerals group posted a £148 million operating loss in the year to 4 January, down from a £142 million operating profit the prior year.
The Co-op Group’s performance was hit by a heavy investment in its banking arm, which it owns a 30 per cent stake in, and a £226m impairment payment on the acquisition of Somerfield in 2009. The Co-op Group’s performance was hit by a heavy investment in its banking arm, which it owns a 30 per cent stake in, and a £226 million impairment payment on the acquisition of Somerfield in 2009.
The UK’s fifth largest grocer also suffered a decline in its food performance. Sales in stores open longer than a year fell 0.2 per cent but figures showed an improving trend, with sales up 0.6 per cent in the second half.The UK’s fifth largest grocer also suffered a decline in its food performance. Sales in stores open longer than a year fell 0.2 per cent but figures showed an improving trend, with sales up 0.6 per cent in the second half.
The retailer said food revenues and underlying operating profits were lower over the full year due to the cost of closing shops, a shorter accounting period and price reductions.The retailer said food revenues and underlying operating profits were lower over the full year due to the cost of closing shops, a shorter accounting period and price reductions.
Sales in its funerals arm rose to £370m from £358m in the prior year and underlying operating profit edged up by £2m to £62m. Pharmacy sales were down by £4m to £760m but profits rose by £5m to £33m. Sales in its funerals arm rose to £370 million from £358 million in the prior year and underlying operating profit edged up by £2 million to £62 million. Pharmacy sales were down by £4m to £760m but profits rose by £5 million to £33 million.
Chief executive Richard Pennycook admitted 2013 had been a "disastrous" year for the group and should serve as a "wake up call" for the Co-op. Interim group chief executive Richard Pennycook said: "2013 was a disastrous year for The Co-operative Group, the worst in our 150-year history.
He blamed the disastrous results of "fundamental failings in management and governance" and signalled more pain ahead. "Today’s results demonstrate that but they also highlight fundamental failings in management and governance at the Group over many years. These results should serve as a wake-up call to anyone who doubts just how serious the challenges we face are."
The Co-op has been enshrouded in controversy over the last year. The discovery of a £1.5 billion black hole in the bank’s funds, the scandal engulfing ‘Crystal Methodist’ Paul Flowers and last month’s departure of chief executive Euan Sutherland, who deemed the group “ungovernable”. The Co-op has been enshrouded in controversy over the last year. The discovery of a £1.5 billion black hole in the bank’s funds, the scandal engulfing ‘Crystal Methodist’ Paul Flowers and last month’s departure of chief executive Euan Sutherland, who deemed the group “ ungovernable”.
More follows