G101 OFF Sales, which trades under the One O One brand, has seen turnover rise as it continues to expand in the buoyant convenience store sector, but its growth has come at the price of a sharp drop in profits, writes Tim Sharp.

The Glasgow business, which is majority controlled by George King, the father of nightclub entrepreneur Stefan King, posted turnover of £48.6 million for the year ended May 21, up from just under £46m for the previous 12 months.

Pre-tax profit fell 72.4% to £56,000 from £203,000 in 2012.

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"The directors are pleased to report that the company's continual policy of expansion in order to increase its share of the convenience store market is proving to be successful," G101's board members wrote in their report to the accounts. "The directors can report an increase of almost £2.7m in the company's annual turnover.

"Looking ahead, there are strong indications that, although maybe not to the same level, the annual turnover will again show an improvement."

The company made sales worth nearly £3.8m to Stefan King's G1 Group during the year.

G101, which employed an average of 437 people, was founded primarily as an off-licence in Glasgow in 1972. Since then it has grown into one of Scotland's largest independent off-licence chains with 47 shops, but with a portfolio that extends to convenience stores, warehousing, storage and distribution and a bonded warehouse.