Apr 6, 2009
Resilient performance in a challenging market

Group recommends first dividend since becoming a plc

€2m Marketing Campaign Investment

€850,000+ invested in Technology & Logistical Support

Thursday 2^nd April 2009 – ADM Londis plc, one of Ireland’s leading symbol groups, today announced its annual results for the year ended 31^st December 2008. Profit before tax is reported at €4.1m, on a wholesale turnover of €341m and Group Retailer sales of €707m. These results represent a landmark for ADM Londis shareholders with the first dividend being recommended since the Group’s conversion to plc status in 2004.

Stripping out €2m of exceptional charges, including a restructuring charge of €0.5m and a prudent  increase of €1.5m in the Group’s bad debt provision - due to the severe credit squeeze – adjusted pre tax profits were in line with 2007, reflecting a resilient operating performance.

Key highlights:

Profit before taxation of €4.1m
 Wholesale turnover of €341m
First dividend recommended for shareholders
Capital and Retained Profits of €21m
 €2m investment in new Marketing Campaign
€850,000 Investment in Technology & Logistics 

Stephen O’Riordan, Chief Executive, ADM Londis plc, said, “2008 was a watershed for Irish businesses. A contracting economy, weak consumer sentiment and a drying up of credit culminated in a very challenging year for an already competitive market. Nevertheless, ADM Londis plc returned resilient results with Group Retailer’ sales of €707m and operating profits of €4.1m incorporating prudent provisions by the Group. Notwithstanding these charges the underlying profitability of the business remains strong and with its low debt profile, the Group remains well positioned within the marketplace.” 

ADM Londis Investments Ltd, the Group’s wholly owned investment vehicle, made its second strategic acquisition during 2008 in Ferbane, Co Offaly. The Group’s properties are held for long term investment and ongoing income generation purposes. However, to reflect the extreme conditions in the commercial property market brought about by the recession, ADM Londis has written down the Group’s property assets by €8.4m.  

Throughout 2008, the Group invested over €850,000 in the development of state of the art facilities including a bespoke Customer Relationship Management platform; Londis ASSIST for the Group Support Office in Johnstown.  This investment will empower Londis employees to deliver first class service to Group retailers.  A further significant investment in Voice Picking Technology for the Group’s warehousing and distribution centre in Johnstown, Naas, Co Kildare has delivered improved productivity, reduced costs and enhanced service levels to the Group. 

Commenting Leo McCauley, Chairman, ADM Londis plc, said, “In contrast to the very active store recruitment drive evident across the industry over recent years, 2008 marked an industry wide transition to store consolidation. Through our shareholders commitment and strong management, the Group has developed a consolidated and sustainable business, which bodes well for the future. The recent Award of ‘Best new Format C-Store’ for a Londis forecourt store is indicative of our competitive offering.” 

2008 also witnessed a number of senior management changes. The creation of the new role of Commercial Director represents a significant development for the Group. In this new role, Peter Foley has taken responsibility for the management of all Group commercial operations and provides leadership and expertise to the Sales, Purchasing and Marketing functions.

O’Riordan concluded, “The focus of all operators within the market in 2009 will be on cost management and delivering increased value for consumers. The considerable investments by the Group in 2008 will ensure that cost efficiencies are achievable by Londis retailers whilst enhanced store standards, a customer focused ethos and keen community participation remain to the forefront of the Londis offering.”

Pictured at the release of the Group’s 2008 Annual Results, Leo McCauley, Chairman and Stephen O’Riordan, Chief Executive, ADM Londis plc.