Iceland predicts three-year recovery


5 July 2001



Iceland predicts three-year recovery


By FWi staff

SUPERMARKET chain Iceland has predicted that it will take three years to bring the business back to good financial health, reports The Guardian.

The group unveiled a 121m loss over 15 months to the end of March, after one-off costs of 145m. In the previous 12 months the group made a 58m profit.

Turnover jumped from 1.92bn to 5.28bn, boosted by the acquisition of Booker food distribution group.

Iceland sales suffered after a switch to organic lines by founder and former chairman Malcolm Walker failed to attract shoppers.

Problems surfaced just after Mr Walker sold a 13.5m holding, a deal now being investigated by the Department of Trade and Industry.

Since then the share price has halved and three profit warnings have been issued. On Wednesday (04 July) the share price fell 9% to 161.5p.

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