ADM Londis pretax profits fall €2m as turnover slips

THE DWINDLING presence of “breakfast roll man” and the loss of alcohol sales to the North have contributed to ADM Londis’s drop in profits, according to chief executive Stephen O’Riordan.

The network of convenience stores yesterday reported pretax profits of €4.1 million for 2008 compared to €6.1 million in 2007, while wholesale turnover slipped from €371 million to €341 million in the same period.

“A phenomenon in the convenience trade was the ‘breakfast roll man’.

“There are much fewer yellow jackets in the shops now,” Mr O’Riordan said.

He also suggested the sterling differential had contributed to a fall in alcohol sales at Londis, which he estimated were down around 10 per cent.

The group’s property assets have been written down by €8.4 million “to reflect the extreme conditions in the commercial property market brought about by the recession”.

ADM Londis booked €2 million in exceptional charges in 2008 which included a restructuring charge of €0.5 million and a “prudent” increase of €1.5 million in its bad debt provision “due to the severe credit squeeze”.

However, Mr O’Riordan said the group had returned resilient results in what he described as a “watershed” year for Irish business.

He said the group was well-positioned in the market thanks in part to its low debt profile.

“A contracting economy, weak consumer sentiment and a drying up of credit culminated in a very challenging year for an already competitive market,” he said.

“Nevertheless, ADM Londis plc returned resilient results with group retailer sales of €707 million and operating profits of €4.1 million incorporating prudent provisions by the group.”

He predicted the focus of all operators in the convenience store sector in 2009 would be on cost management and delivering increased value for customers.

“What’s needed to get things moving is the freeing-up of credit for small business,” he said.

The group has recommended the payment of its first dividend since it became a plc in 2004.

The payment of 50 cent per share will average at €3,000 per shareholder, Mr O’Riordan said.