The new Network Magazine (see below) includes details of the regional results for the half-year from mid-January. In total, in the Central and Eastern Region, we have had sales of £302.5m (up £8.4m on this time last year), and made a profit of £8.3m (up from last year by £2.3m). So a good half year for our region?
Well, sort of. These figures are made up from four very different businesses: Food Retail, Travelcare, Funeralcare and Pharmacy (other businesses such as the Co-op Bank, CIS, Farmcare etc. are not reported on a regional basis). Of these, Food retail has seen a 2.3% increase in sales, leading to a profit of £5m (compared with £2.6m in the first half of last year). This is a reasonable performance, but we are still losing out in terms of market share, and much of the profit increase arises from reduced central overheads, rather than expanding operations. Nevertheless, Food Retail results are turning the corner, and are back contributing the major part of our bottom line.
Travelcare, by contrast, is having real difficulties with the changing nature of the travel business. More and more people are booking online, and organising their own holidays. Although we do have a growing
online presence, we are struggling to break even, as can be seen from our £0.1m loss in this region, compared to a £0.7m profit last year. In my opinion, the way forwards for Travelcare has to be in cross-selling: we have thousands of food shops up and down the country that can have a small space promoting deals that can then be booked with us online - this is an advantage over most other direct sellers who can manage much less "real-world" promotion.
Funeralcare in the region is plodding on - the death rate is falling, but we are still running a profitable funeral business, which sounds like a win-win situation to me! We made £0.9m profit (up £0.4m) on sales of £10.4m.
Finally, Co-op pharmacies (of which we have plenty in the East of England) are still bringing home the dough. Profit is up slightly to £2.5m on increased sales.
Unfortunately, the breakdown by area was discontinued last year, and it has not been brought back this time. Instead we have a couple of pie-charts showing the share of sales and profit between the five areas that make up the Central and Eastern region. I think it helps to promote an increased feeling of ownership amongst members if the results for their individual areas are published, so I will raise this point again at the first opportunity.
Of course, the most important issue is what we do with all this profit that we have made: investment in the business, distribution to members and good causes, and support for the Co-operative Movement.