Budgens profits rise, but pays for Internet failure - Brief Article - Statistical Data Included

Eurofood, Feb 1, 2001

UK-based supermarket retailer Budgens has reported half-year pre-tax profits of some [pound]8.6m ([euro]13.4m), an increase of 10% compared to the previous half-year to mid-November. Turnover at Budgens was also up by 4.2% reaching a value of [pound]255.3m, with operating profits also up at [pound]9.8m.

Operating margins at the retailer were recorded at 4.1% for the six-month period: unchanged. Budgens sold a 28% stake in its business to Irish group Musgrave in a deal worth [pound]115m, and the Irish concern has the option to purchase more shares in Budgens, increasing its stake up to 43.5%. However, despite the firm reporting a 10% rise in its pre-tax profits, its failed Internet strategy, which closed in September of 1999, has cost Budgens around [pound]2.5m. Martin Hyson, chief executive at Budgens, has said in various press reports that Budgens and Musgrave are holding talks with regard to exploring future savings, perhaps in buying policy. Hyson said he would reveal more with Budgens' full-year results.