Nisa Records Drop In Sales But Returns To Profitability
UK convenience retailer Nisa has reported sales of £1,252 million for the financial year ending 2 April 2017, which represents a 2.6% decrease compared to the previous year.
However, the retail group notes that sales were 3.8% higher when adjusted for the movements in large accounts, including the 298 stores it acquired from the Co-operative.
The company's profit before tax was £2.8 million, representing an £8.1 million turnaround when compared to its loss of £5.4 million last year.
"The uplift in performance throughout FY17 continued to build on the foundations laid in FY16, when Nisa returned to profitable growth," said Nick Read, CEO of Nisa Retail.
"It has also helped us to convey a message of long-term sustainability, key to securing the confidence of our banking partners in our recent refinancing discussions. The business now has the security of a £120 million facility for a period extending to five years, the terms of which are more favourable than our previous facility."
"Having returned the business to profitability during the past two years, we now have a sustainable business model with which to move forward and grow our membership," he added.
Last month it was reported that UK supermarket giant Sainsbury's could be close to submitting a formal bid to acquire Nisa for around £130 million, however, this was met with concerns from a number of Nisa retailers.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.