Convenience store group BWG has reported a 15 per cent rise in operating profit on a like-for-like basis after a year of corporate restructuring.
It also announced plans for a significant investment in its British off-licence franchise Bargain Booze, which was the main driver of sales growth in 2003.
BWG, which operates the Spar and Mace franchises in Ireland, yesterday announced 2003 turnover of €1.84 million. This comprised 9.1 per cent growth in BWG Foods and 47.5 per cent in Bargain Booze. The group also operates the Spar franchise in south-west England through Appleby Westward.
BWG, which was bought by management from Pernod Ricard in a deal worth about €250 million in August 2002, said operating profit in 2003 was €37.8 million. Of this, €1.6 million came from discontinued operations.
Net profit after tax was €29 million and no dividends were paid.
The group disposed of four non-core businesses during 2003 - English wholesale operations Saxtons and Daunts, Scottish cash-and-carry business Bellevue and Northern Irish retail and cash-and-carry group Hasletts.
The sale of these parts of the group, together with the operating profits and some property disposals, allowed BWG cut its management buyout-related bank lending of €140 million to €40 million.
The group is refinancing its 8.5 per cent, seven-year bond debt of €110 million in a move that it predicts will see annual savings of €4 million in its interest bill.
Private equity group Electra Partners will continue to hold a 65 per cent stake following the refinancing, with the balance held by company management and private investors.
Chief executive Mr Leo Crawford said the company saw strong opportunities for growth across its businesses.
"The results for 2003 are excellent. Since the management buyout in 2002, we have focused our attention on the future development of the business."
He said the group was on course to deliver on its €250 million expansion programme for its Irish Spar and Mace franchises, which will create 1,750 jobs.
He shrugged off the rejection of the company's €35 million bid by rival convenience retail group ADM Londis and said that while the company had no specific acquisition targets in sight, it had the wherewithal to move if the right deal came along.
BWG said it would also add 150 stores to its rapidly growing Bargain Booze chain in England over the next three years. The expansion will see Bargain Booze, which has been concentrated in the north-west, expand into the north, midlands and south-west regions.
BWG has more than 1,500 symbol stores in its portfolio and employs about 1,000 people.
