Booker profits lifted by catering

Cash-and-carry chain Booker have announced a 30% rise in annual profits

Cash-and-carry chain Booker has said new-look branches and a drive into the catering market helped it deliver a 30% rise in annual profits.

The haul of £47.2 million for the year to March 27 was achieved after Booker lifted sales 3.3% to £3.2 billion, despite poor economic conditions and the impact of the smoking ban on tobacco sales.

Like-for-like sales to the catering trade lifted 7%, compared with a 1% rise in sales to retailers, as Booker took steps to broaden its business.

The overhaul has now seen it convert 71 of 173 branches into its Extra format, which features improved layout, signage and ranges.

Through Booker Direct, its delivered wholesale business, the company has become the largest supplier of food and drink to the UK's cinema industry. It has also been awarded a contract to supply prisons in England and Wales and holds preferred food supplier status to S&N Pub Enterprises.

Chief executive Charles Wilson said the company's performance contrasted with autumn 2005, when sales were dropping by 6% a year and supplier and customer confidence in the business was low.

A new management team arrived in November 2005 and launched a plan to "focus, drive and broaden" the business.

"That plan is working," Mr Wilson said. "Customer satisfaction is improving due to our better choice, lower prices and enhanced service."

Despite product cost inflation in several sectors including cooking oil, rice, pasta and bread, Bookers said its prices remained competitive. It also launched a £2.50 meal deal to help independent pubs compete in the price-cutting environment.