Londis results show ‘resilient performance’
With pre-tax profits down €2m on last year, Londis CEO Stephen O'Riordan was satisfied with the results in the current "challenging market"
20 April 2009 | 0
As we went to press, Londis ADM announced its annual results for 2008, which the group said reflected a “resilient performance in a challenging market.” Profits before tax came to €4.1 million, down €2 million from the previous year, and total wholesale and group retail sales turnover amounted to €341 million and €707 million respectively.
In an official statement following the announcement, Londis said that “adjusted pre tax profits were in line with 2007”, stripping out exceptional charges including a restructuring charge of €0.5 million and “a prudent increase” of €1.5 million in the group’s bad debt provision.
In addition, Londis said that the results “represent a landmark” for the group’s shareholders, as this is the first time a dividend has been recommended since its conversion to plc in 2004. Chief executive Stephen O’Riordan remarked that 2008 was “a very challenging year for an already competitive market” but added that given the year’s “resilient results” and “prudent provisions”, the “underlying profitability of the business remains strong and with its low debt profile, the group remains well positioned within the marketplace.”
In 2008 Londis made a substantial investment of €850,000 in enhancing its IT facilities including a Customer Relationship Management platform, ‘Londis ASSIST’, for the group support office in Johnstown, Naas, Co Kildare. It also made a “further significant investment” in voice picking technology for the group’s warehousing and distribution centre in Johnstown, which it says “has delivered improved productivity, reduced costs and enhanced service levels.”