• Gross takings increase 7.4% to a new record of £67,739,277
• “Like for Like” sales growth 7.7% beating inflation for the 12th successive year
• Trading profit reaches £1.4m, a new record
• Capital investment in the year £1,059,346

That the Society is able to report record financial results is, in the opinion of the Directors, testament not only to the robust nature of the Society’s trading strategies but also to the skilful execution of those strategies by the Senior Management team and colleagues in our shops.

The Society’s ability to generate market leading levels of growth in a very challenging environment has enabled some very severe cost pressures to be absorbed, so much so, that cost as a proportion of the Society’s income has fallen to 91.1%, whereas last year, the ratio was 93.0%.

Trading surplus for the year before exceptional costs amounted to £1,408,298. This compares to £1,020,355 for last year, which however was a period of 53 weeks. After adjustment to make a true comparison, trading surplus has increased by £407,195 or 40.7%.

In the grocery market, one of the key measures of performance used by all our competitors is the rate of “like for like” growth in core food categories. The Society has, in the past year, achieved “like for like” growth of 10%. The Directors are not aware of any Food business that has achieved a better figure.

We are extremely pleased to be able to report to members that the following full year rates of growth have been achieved in the following specialist food areas:

% increase by value

Members will be aware that the Food business is the “bedrock” of the Society’s profitability and indeed, our principal business activity.

The outstanding turnover figures achieved during the financial year have resulted in the profitability of our Food business increasing “year on year” by a remarkable 21%, which in the opinion of the Directors is a further justification for the investment in infrastructure and Brand that has been made in recent years.

In Departmental Stores, the Directors are very pleased to be able to report to members that the Society’s business has performed very creditably, with outstanding increases in turnover having been achieved in the following departments:

The above achievements have enabled the Society’s Departmental Stores to improve the contribution made towards the Society’s overall profitability.

The Society’s Travel business has met the requirements of the 2009/10 business plan.

The Society’s Funeral business has had another outstanding year building on the strong growth in numbers and revenue achieved last year. The Directors are pleased to report that the Funeral business out-performed the requirements of the 2009/10 business plan by a comfortable margin.

The combination of lower borrowings and lower interest rates has had a very beneficial impact on the Society’s Revenue Account, so much so that net profit, i.e. profit before exceptional items and distributions, has improved “year on year” by £476,255 or 108%.

For the current year, the Directors propose to recommend to members a payment of a Share of the Profits at a rate of £6.25 for each 1,000 points earned; this reflects the Society’s excellent trading results and is an effective increase of 11.6%. Directors hope very much that this is a help to members in these difficult times.

During the course of the year, the national membership scheme has been adopted with the replacement of Starcard by the national membership card displaying the Society’s name. This underlines the Society’s commitment to the resurgent Co-operative brand.

A significant number of new members have been recruited and the usage of membership card has improved substantially, contributing to the Society’s improved financial performance as well as sharing more with members.

As we enter 2010, it is the Directors’ opinion that economic conditions will remain extremely challenging for the foreseeable future.

Consumer confidence is still fragile and unemployment worryingly high, this coupled with a clear trend by consumers to curtail spending and pay off mortgage debt does not bode well for retailers.