Booker trading continues to defy downturn

BRITAIN’s biggest cash-and-carry wholesaler said its recently acquired business was trading in line as it reported a rise in group sales in the quarter.

Booker, which runs 172 branches supplying caterers, convenience stores, grocers, restaurants and pubs, said total like-for-like sales were up 2.2 per cent in the 12 weeks to March 29 compared to last year.

The company said that annual profits remain in line with expectations

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The company’s quarterly non-tobacco sales rose 4.2 per cent on a like-for-like basis, while tobacco sales were down 0.9 per cent.

Charles Wilson, chief executive, said: “In a challenging environment, Booker has continued to grow non-tobacco sales by 4.3 per cent through improving customer satisfaction.

“We are into the final stage of the Competition Commission’s review of the Makro acquisition and we remain confident that a combination of Booker and Makro will improve choice, prices and service for caterers, retailers and small businesses in the UK.”

Booker has defied the downturn in the UK cash and carry market, managing to grow sales as Britons increasingly shop at their local convenience store instead of supermarkets.

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Total sales for the year to March 29, 2013 were £4bn, up by 3.5 per cent compared to last year and in line with expectations, boosted by rising internet sales.

Last month, the Competition Commission provisionally cleared Booker’s merger with Makro, the loss-making UK business of German retailer Metro.

Until it receives formal clearance, Booker is required to hold the Makro business separate, but it said that the Makro business had been trading in line with its expectations in the quarter.

Net cash stood at around £77m at the end of the year, compared to £63m a year ago. Booker is paying a part-cash consideration of £15.8m for the Makro business.

The group has an extensive branch network in Yorkshire with sites at locations including Harrogate, York, Scarborough, Leeds, Bradford, Castleford, Middleton, Huddersfield, Barnsley and Sheffield.