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Co-op Group edges back into profit | Co-op Group edges back into profit |
(35 minutes later) | |
The Co-operative Group has returned to profit in the first half of the year, after a series of major setbacks caused massive losses in 2013. | The Co-operative Group has returned to profit in the first half of the year, after a series of major setbacks caused massive losses in 2013. |
The group reported half year profits of £12m, compared with losses of £767m in the same period last year. | The group reported half year profits of £12m, compared with losses of £767m in the same period last year. |
It has appointed Richard Pennycook as chief executive, and has started to implement a three-year turnaround plan. | It has appointed Richard Pennycook as chief executive, and has started to implement a three-year turnaround plan. |
Overall the Co-op made losses of £2.5bn last year, the worst results in the group's 150-year history. | Overall the Co-op made losses of £2.5bn last year, the worst results in the group's 150-year history. |
Mr Pennycook said the latest results "clearly reflect an organisation in transition and show the scale of work necessary to restore the group to full financial health". | Mr Pennycook said the latest results "clearly reflect an organisation in transition and show the scale of work necessary to restore the group to full financial health". |
He became the group's interim chief executive in March after the previous boss, Euan Sutherland, resigned. | |
Radical reforms | |
While overall profit for the first half was improved, underlying profit, which excludes one-off charges and gains, was down 43% to £66m. | While overall profit for the first half was improved, underlying profit, which excludes one-off charges and gains, was down 43% to £66m. |
Mr Pennycook blamed those weak profits on "tough trading conditions" and the expense of reorganising the business. | Mr Pennycook blamed those weak profits on "tough trading conditions" and the expense of reorganising the business. |
On Saturday group members voted to radically alter the governance structure of the Co-op. | On Saturday group members voted to radically alter the governance structure of the Co-op. |
The reforms include a reduction in the number of board members from 20 to 11 and the creation of a council to hold the board to account. | |
Efforts to turn the business around have included the sale of the Co-op's 774-strong pharmacy chain in July to cash-and-carry wholesaler Bestway Group. | |
The Co-op sold off its farm business to health charity the Wellcome Trust in August, and announced it had reached a deal to dispose of security firm Sunwin Services Group this week. |