ADMLondis plc, one of Ireland’s fastest growing retail symbol groups, today announced its annual results for the year ended 31st December 2007. Profit before tax increased by 20% to €6.1m, on a wholesale turnover of €371m (up 4.5%). ADM Londis also announced that its shares are now valued at €85.04, an increase of 7% on the April 2007 valuation. The Group added 35 new stores in 2007 and now represents a network of over 370 stores with a combined retail turnover of €761m.
Key highlights:
- Profit before taxation of €6.1m, up 20%
- Wholesale turnover of €371m, up 4.5%
- 7% increase in Share Price
- Shareholder Funds Increase to €26.6m, up 24%
- €15 million committed to strategic acquisitions
- €50m Forecourt Presence secured with Texoil
Stephen O’Riordan, Joint Chief Executive, ADM Londis plc, said, "2007 witnessed a marked increase in market competition, highlighted by the significant surge in the pursuit of marketshare by the symbol groups across Ireland. Nevertheless ADM Londis plc returned excellent results with steady growth in wholesale sales and group retailers sales coupled with significant growth in pre-tax profits.
ADMLondis will continue its growth trajectory in 2008 and aims to add an additional 40 new stores over the course of the next twelve months. This growth will be reinforced by our strategic investment arm (ADM Londis Investments Ltd), which has committed over €15 million to strategic acquisitions in Connaught and the Midlands during its first twelve months of operation. This store purchase strategy will continue ADM Londis’s approach of managing store numbers within the Group through the addition of quality innovative retailers and retail outlets."
The Group also recently announced an agreement with Texoil, which will see ADM Londis’s forecourt presence swell to over 100 locations throughout Ireland, positioning the Group to the forefront of forecourt retailing. The Texoil announcement will also result in the creation of an additional 300 jobs and add an additional €50m in retail turnover for ADM Londis over the next two years.
Commenting Leo McCauley, Chairman, ADM Londis plc,said, "today’s results demonstrate the continued growth and resilience of both the ADM Londis brand and our retailers. The early indicators are that 2008 will be an even more competitive environment with retailers facing downward pressure on prices, combined with rising interest rates and rising business costs. As a Group we will continue to meet and match these challenges with continued innovation for both our retailers and consumers alike. We will be shortly rollout out new store formats which will place Londis at the cutting edge of premium retail offerings."
The success of ADM Londis plc is down to the strong relationships fostered between the company and its retailers, it is the only Irish symbol group where retailers can own the company through share holdings and realise the value in their shares at market price. As such, retailers can be very confident that the group is managed with their very best interests at heart.
ADMLondis also launched its new €3 million marketing campaign in January, spearheaded by a set of six new TV advertisements and supported by radio and outdoor advertising. This new campaign is the culmination of 12 months of research and preparation by the Group and underlines the determination to make the Londis branding message stand out from an increasingly saturated market.
