Iceland enjoys big leap in profits

Iceland Foods Group, the owner of Iceland Foods and Cooltrader, said the conversion of 51 former Woolworths stores contributed to its fastest rate of expansion since the group acquired Bejam in 1989.

Like-for-like sales at Iceland Foods stores open for more than a year rose 4.3 per cent in the year to March 26 and helped total sales lift 10.4 per cent to 2.2bn. Net profits rose to 135.4m from 113.4m a year earlier. Despite increased capital expenditure as the group stepped up its expansion programme, net debt was reduced to 7.6m from 85.4m.

Chief executive Malcolm Walker has overseen five years of growth at the chain after its performance nose-dived under previous owner the Big Food Group.

Iceland was co-founded by Mr Walker in Oswestry, Shropshire, in November 1970 and he returned to manage the business in February 2005.

He said competition in the sector was "more aggressive than ever" but said the company had the right business model to make further progress.

"The key to our success remains simple – offering customers the best everyday value in frozen foods and for their daily purchases of grocery and chilled foods."

The morale of its 20,000-plus staff has also improved, with the company recently named as one of the best 20 large companies to work for in the UK.