Record performances from its ethical banking arm and an improvement at Co-op food stores helped push operating profits for the year to January 9 to £113 million, against £92 million last time.

The retail division posted what CWS described as its first sustained growth of market share for 22 years.

Like-for-like sales growth, stripping out income from new store space, at the 640-strong chain of Co-op supermarkets, convenience stores and superstores, jumped 4.2 per cent last year compared with the previous 12 months.

At Christmas, like-for-like sales increased 6.6 per cent over the previous year while the national market improved at only 2 per cent.

CWS chief executive Graham Melmouth said the improvement was due to changes brought about by the retail division's new management team, led by retail controller Malcolm Hepworth.

Mr Melmouth, who led the successful CWS defence against a hostile takeover from entrepreneur Andrew Regan two years ago, said while the retail team's marketing and brand renewal programme was working there was "still much to do."

Sales were £3.18 billion, compared with £3.14 billion the previous year.

The national roll-out of the Co-op's incentive dividend card for shoppers saw payments to customers of £20 million against the backdrop of the stores' first national television advertising campaign for 20 years.

The Co-operative Bank saw continued steady growth, contributing a pre-tax profit of £73.6 million, up from £55 million last time.

Co-op boost as

profits increase

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