Iceland lifts payout but shares slip
Thursday 07 September 1995
The improving fortunes at Iceland, the frozen food retailer, took a step back yesterday in spite of improved half-year profits and a 25 per cent hike in the dividend. The shares fell 9p to 184p.
Pre-tax profits for the six months to June rose 4.7 per cent to pounds 33.6m. Like-for-like sales were up 2 per cent against 3.5 per cent in the same period last year. The interim dividend was raised to 1.65p.
Iceland, which aims to be everyone's "second shop", is continuing its rapid expansion programme which will create 5,000 jobs over the next five years. It is doubling store numbers from the current 725 to 1,500 by opening at least 55 stores a year.
Iceland added 24 outlets in the first half and 10 more so far in the second half.
Nine Presto and Safeway stores acquired in May will re-open as branches of Iceland later this year. Iceland is also expanding in Northern Ireland and will open its first stores in the Republic next year.
More than 400 outlets have also been refurbished and 180 new frozen product lines have been introduced. Iceland has also just launched a "silver jubilee" marketing programme.
Malcolm Walker, chief executive, said: "Combined with our improved store layouts and product ranges, this is expected to restore momentum to our like-for-like sales."
After several years of boosting its chilled foods and fresh foods ranges, the company is concentrating on its core frozen foods lines.
Sales in the first half were up 5.5 per cent to pounds 655m. Borrowings have been reduced to pounds 55m at the half-way stage compared with pounds 75m last year.
- 1 Barbarians vs Samoa interrupted by sprinklers as fans criticise lack of Wi-Fi and poor seating at West Ham's Olympic Stadium
- 2 Watch the Supermoon live: How to see the brightest Moon of the year tonight
- 3 Hulk Hogan wants to be Donald Trump's running mate in the US Presidential election
- 4 Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
- 5 David De Gea to Real Madrid: Real finally get their man with £29m bid for Manchester United goalkeeper
Caitlyn Jenner car crash: Driver who died in collision sued by surviving passengers for $18.5m
Watch the Supermoon live: How to see the brightest Moon of the year tonight
Hulk Hogan wants to be Donald Trump's running mate in the US Presidential election
Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
Turkey duped the US, and Isis reaps rewards
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...