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 Frank Lampard's face drops when Holly Willoughby introduces him as a 'Man City legend'
- 2 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 3 The confessions of men who ordered mail-order brides
- 4 General Election 2015: Stephen Hawking says he will vote Labour
- 5 Yazidi sex slaves undergoing surgery to 'restore virginity' after being raped by Isis militants
General Election 2015: Tories sack candidate who said she would never support 'the Jew' Ed Miliband
The four utterly contradictory polls that tell the story of this election and why it is pointless trying to predict the outcome
9/11: Iranian General accuses US of organising September 11 terror attacks
General Election 2015: Prospect of Labour-SNP coalition makes one in four voters less likely to support Ed Miliband, says survey
General Election 2015: Stephen Hawking says he will vote Labour
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
Andrew Lloyd Webber: Phantom of the Opera writer mocked after issuing a warning about Ed Miliband and Nicola Sturgeon
General election 2015: Labour will toughen hate crimes legislation surrounding Islamophobia
EU exit would hit UK economy much harder than neighbouring countries, study finds
iJobs Money & Business
£Basic (OTE) + Uncapped Commission: Guru Careers: A Stockbroker (qualified / p...
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...