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The Channel Islands Coop Board has today announced that it will be proposing a 2% dividend for members at the company's annual meeting this month, as it confirmed a net loss of £1.8m.
The dividend rate is proposed each year by the retailer and voted on by members at an annual meeting held in May when the firm’s accounts are published.
Members are then invited to vote on the plans.
The reduced dividend rate was announced today in an email to members, which said: "In proposing a 2% dividend, we have taken the time to thoroughly review what is in the best interests of our member owners and our ability to sustainably pay a dividend despite the impact on our profits in the last year."
The email also revealed that the CI Coop achieved a turnover of £208.5 million, reflecting an increase of 8.4% over the previous year.
However, the company generated a net loss for the year of £1.8 million, "following payments for dividend, member interest, and revaluation of investment properties".
Pictured: The email sent to CI Coop members announcing the 2% dividend proposals.
In February, the Coop warning that it was considering stopping or reducing dividend rates paid out to its thousands of members across the Channel Islands in an "unprecedented" amid worsening financial performance.
The level of dividend is determined by the financial performance of the business in the previous year. It allows customers with share numbers at the checkout to earn a financial reward every time they make a qualifying purchase.
Profit is returned to Coop members based on the rate and the number of purchases they have made.
But earlier this year the retailer said there has been “continuous pressure” on global supply chains and prices since Brexit and the pandemic.
Accounts for the company for 2022 showed that profits continued on a downward trend and it was reporting “very challenging trading conditions”.
Pictured: CEO Mark Cox.
Mark Cox, CEO at the CI Coop said at the time that the business had "not been immune” to rising costs due to global events and has worked to invest in prices where it can to mitigate “the financial stress our customers are experiencing in the current economic climate”.
He said the reward scheme is “directly dependent on our financial performance, and that has been affected by extremely challenging market conditions over the past few years”. He added that the firm has resisted passing product price increases onto consumers as far as possible to help manage the cost-of-living crisis and is looking for efficiencies and savings “wherever it can”.
Today, the Coop's Chair, Jon Bond, said the Board was pleased to propose a 2% dividend, saying that time had been taken to "thoroughly review what is in the best interests of our member owners and our ability to sustainably pay a dividend despite the impact of world events on our profits in the last year".
Mr Cox added: "We recognise that our announcement earlier in the year regarding dividend payments caused some concern however I am delighted that after a period of review we have been able to ensure we can make a payment to our member owners, I would like to record my thanks to all our member owners and colleagues for their understanding, loyalty, and continued commitment to our CI Coop."
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