NI joint venture moves into black

Fitzwilton's joint venture with Safeway in Northern Ireland has moved into the black for the first time.

Operating profits of £400,000 sterling (€667,445) were earned on sales of £96.4 million at the 12 stores owned by the joint venture in the 28 weeks to mid-October, Safeway said in its interim statement yesterday. Comparable results reported for the same period last year showed losses of £3.1 million incurred on turnover of £84.3 million. Safeway chief executive Mr Carlos Criado-Perez said the joint venture with Fitzwilton was continuing to build on its "strong position in Northern Ireland, where we have a 13 per cent market share".

"Sales have continued to grow very strongly with a like-for-like increase of 13 per cent in the first half," he said. "As a result, our stores made a small operating profit for the first time and we expect to see a rising contribution during the remainder of this year and beyond as we improve and expand our operations."

Sustained improvements will still be needed before Fitzwilton begins to achieve a return after taking account of the cost of funding its 1997 investment of £65 million and share of subsequent losses.