Iceland lifts payout but shares slip
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.NIGEL COPE
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.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments