The Convenience Shop (Holding) plc - Interim Results

On 25 August 2023, The Convenience Shop (Holding) plc (“Convenience”) published its interim financial statements covering the six-month period ended 30 June 2023.

Revenues grew by 15.5% to €22.5 million compared to €19.4 million generated in the first half of the previous year, reflecting the recovery of shop sales post the Covid era.

Operating costs also increased notably by 14.4% to €20.9 million (H1 2022: €18.3 million) as a result of increased investment in human resources and significant cost of living salary adjustments effective from January 2023.  Consequently, the company’s operating profit surged by 33.9% to €1.55 million from €1.16 million in the corresponding period in 2022.

After accounting for other income of €0.3 million, net finance costs of €0.43 million and a tax charge of €0.43 million, the company reported a net profit attributable to shareholders of €0.99 million which is almost double the €0.50 million figure recorded in the previous comparable period.

In terms of financial position, total assets increased by almost 9% to €36.5 million compared to €33.6 million as at the end of 2022. Similarly, total liabilities also grew by 3.8% to €26.9 million. Meanwhile, total equity expanded by 25.5% to €9.6 million.

Dividend

The Directors approved a net interim dividend of €0.015 per share which translates into a payout ratio of just under 50%. The dividend will be paid on Friday 29 September 2023 to all shareholders as at the close of trading on Tuesday 5 September 2023.

Outlook

In their commentary, the Directors explained that their main aims going forward are enhancing the shopper experience and introducing more efficient procedures for employees. Throughout the next six months, the company will focus on capturing new shopper occasions to increase profitability. Moreover, through a partnership with the National Lottery, scratch card products will be available for purchase via the Convenience Shop network. Furthermore, the company also aims to invest €1.8 million to modernise its outlets. The Directors concluded by stating the company’s intentions to expand their outlet network from the 87 that are currently operating.