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G101 hit by fall in profits despite rise in turnover

OFF-LICENCE and convenience store chain G101 Off Sales, which trades under the One O One brand, has posted a 6% fall in profits even though its sales rose.

Turnover increased from £45.2 million to £46m in the 12 months to May 31, 2012, while pre-tax profits were at £203,000, down from £216,000.

In accounts filed at Companies House, the directors said they were satisfied with the result, particularly the improved gross profit margin of 14.38%.

They added: "An increase in the gross profit margins was targeted at the start of the financial year, and this was achieved in spite of the continuing period of economic uncertainty."

Two more retail units were opened during the year with the directors stating they were hoping to continue building the store estate for the foreseeable future.

The Glasgow business –majority controlled by George King, the father of nightclub entrepreneur Stefan King – had net funds of almost £2.2m at the end of May last year, up from £1.9m.

Average monthly employee numbers rose from 410 to 433 with staff costs staying steady at £4.87m.

Directors' emoluments increased from £46,031 to £50,357.

Total dividends of £125,926 were paid in the financial year, the same level as in the previous set of accounts.

Stock levels were up from £3.4m to £3.9m.

Stefan King's G1 Group bought almost £3.8m of goods from G101 during the year while his Cabaret Voltaire bought £99,032 and Lister Square (Number 53) purchased £294,315 worth.

Burnfield Trading Company, run by George King's wife Cynthia, was due £1.16m.

The G101 accounts also show it paid more than £500,000 in rental costs to its pension fund.

The pension fund separately paid £700,000 for a property developed by the business.

George King was owed £77,000 at the end of the year.

G101 was founded primarily as an off-licence in Glasgow in 1972.

Since then it has diversified into food retail with more than 40 premises across Scotland's largest city plus Lanark, Johnstone and East Kilbride.

In recent years it has managed to stay in profit despite competition from supermarkets.

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