CONVENIENCE store retailer CJ Lang & Son has said it has significant growth opportunities in spite of uncertainty about consumer spending and increasing competition from supermarkets.
The Dundee-based firm, which owns the SPAR franchise in Scotland, said it is well-placed to grow its market share with a strategy that includes persuading consumers to do more shopping in outlets that trade under the fascia and growing its store portfolio.
Writing in the company's latest accounts, for the year to 30 April 2014, directors said the trading outlook is expected to remain challenging and to become increasingly competitive.
They noted the main uncertainties facing the group included the extent to which consumer spending continues to be constrained due to economic and behavioural factors and the impact of further competition.
Owned by the Scott- Adie family, CJ Lang previously noted that cash conscious consumers had been exercising more discretion on food spending amid a squeeze on household incomes. Pay rises lagged inflation for a long period before the recent fall in oil prices helped to ease some of the strain on family finances.
In the accounts, directors said the multiple supermarkets continued to increase their presence in the convenience store sector. The likes of Sainsbury and Tesco have made a big push for growth in this sector by opening smaller "local" outlets.
However, CJ Lang wrote: "The directors believe that the Group, through its association with SPAR, is well placed to grow its own market share in the long term."
The company added: "Directors remain confident that significant long term growth opportunities exist and believe that the Group is well placed, both financially and with the strength of its management team, to achieve its strategic aims."
On its website CJ Lang & Son says it remains very much a Scottish family business and is one of Scotland's largest independent Companies.
The company said it has made an encouraging start to the current financial year against key strategic objectives.
In addition to persuading more retailers to join SPAR, opening new stores and increasing footfall in outlets, CJ Lang said it will continue to exercise prudent cost control.
The company recorded a one per cent increase in turnover in the year to April, to £194.8 million, from £193m in the preceding year. It said this came principally from an expanded store estate.
The accounts show the company paid £744,000 (p19) to acquire the Landsburgh Bros convenience stores business during the year.
The growth in the stores estate resulted in increased operating costs.
However, the company said this was offset by the effect of significant investment in increasing distribution and energy efficiency.
Directors were pleased net profit was broadly in line with the previous year. The company made £1.12m pre tax profit compared with £1.27m last time.
It paid dividends totalling £560,000 down from £1.12m.
Some £286,300 total dividends were paid to Joan Scott-Adie, the company's chairman, down from £572,600.
CJ Lang paid dividends totalling £266,560 to other family directors, down from £533,120.
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