Co-op Group offloads final 1% stake in troubled Co-op Bank
The Co-op Group posted a 48% fall in underlying pre-tax profits to £14 million for the six months to July 1.
The Co-operative Group has revealed it no longer holds any stake in the troubled Co-op Bank business after offloading its 1% holding.
The mutual had been left with just 1% after a £700 million rescue and refinancing deal to get Co-op Bank back on track completed weeks ago, but confirmed it has now sold the last remaining stake for around £5 million in the last few days.
It leaves the pair with just a relationship agreement, which will also fall away over the next few years and end formally in 2020.
Details of the stake sale came as the Co-op Group posted a 48% fall in underlying pre-tax profits to £14 million for the six months to July 1 after shelling out £35 million in member rewards and after losses at its insurance arm.
On a bottom-line basis, profits rose 47% to £25 million.
The figures come weeks after Co-op Group emerged as the front-runner to buy convenience store operator Nisa, muscling out rival bidder Sainsbury’s.
The Co-op is thought to have tabled a £140 million bid for Nisa, whose 1,300 shopkeeper members run 3,000 stores.
In its half-year results, the Co-op Group said its insurance business swung to an underlying operating loss of £1 million against profits of £11 million a year earlier as it increased reinsurance through third parties.
On a reported basis, it saw operating losses widen to £11 million from £4 million a year ago.
But the group hailed its 14th quarter in a row of rising sales at Co-op Food, with like-for-like growth of 3.5% in its first half.
Convenience store like-for-like sales rose 4.5%.
It said underlying operating profits from the food business jumped 3% to £65 million and 22% higher on a reported basis.
Steve Murrells, group chief executive of the Co-op, said the group “continued to perform in the face of challenging markets”.
He added: “Across our business we are also maintaining our commitment of reinvesting for the future success of our Co-op.”
The group has signed up more than 1.1 million people as members since relaunching its reward scheme a year ago.