Wholesaler CJ Lang hails return to growth after pre-tax profits take a hit

● New leadership team reports strong start to current year following review

CJ Lang has outlined new initiatives to drive profitability after reporting a significant drop in pre-tax profits for the financial year.

The Spar wholesaler and retailer, which celebrates its 100th birthday next year, posted profits before tax of £490,000 for the year ended 30 April, down from £925,000 in the previous financial year. The Dundee-based company attributed this drop to a “significant figure” set aside for the provision of stock liquidation, adding that underlying profits, before one-off provisions, were “broadly in line with the previous year”.

Turnover dipped by 1.3 per cent to £183.1 million during the same period.

However, speaking to The Scotsman, chief executive Colin Mclean emphasised the business had experienced a return to growth in the current financial year under its new leadership.

Mclean was appointed chief executive in the spring, along with finance director Craig Tedford and chairman Jim Hepburn.

Mclean said: “A lot of focus certainly over the last seven months has been about driving the business back into profitable growth.

“I’m pleased to say that both our independent business and our company-owned store business over the past seven months are now back in growth and doing well.

“Clearly, the first few months of the [financial] year were very strong off the back of the sunshine but the good news is that in recent weeks, and again last week, we experienced the best like-for-like sales growth, since the summer, for many years.”

Following a strategic review of its company-managed division, the firm took the decision last month to sell off eight of its company-owned outlets.

CJ Lang said it will focus on “modernising” its stores with convenience offerings to meet the changing needs of customers, particularly in light of the successful launch of recently opened stores.

This includes sites such as Halbeath, in Dunfermline, which offers a deli and “food to go” proposition.

The company plans to launch further stores in Glasgow, Edinburgh and Falkirk in the coming year.

Mclean added: “Like many retailers there’s a lot of challenges in the market and what we’re really trying to do is get customer-focused and get the right proposition, right product, right deals and the right availability for our customers.”

The company, founded in 1919 in St Andrews, employs around 2,000 staff across Scotland.