Franchise convenience store chain Nisa is to pay a record £4.6 million to member in surplus and an addition £350,000 in dividend payments, it has been announced today.
Payments follow strong trading at the retailer, which last week reported a 4.2 per cent increase in turnover to £1.58 billion for its full financial year to April 1st 2012, while profit before tax jumped to £3.8 million from £1.7 million the previous year.
In recognition of the support and loyalty of its members, the retail group’s dividend payment equates to £8 per share and it is hoped that the move will encourage those without the maximum 100 share to take up the rest of their entitlement.
Simon Webster, Nisa’s Finance Director, commented: “Despite the company being faced with a number of challenges this year, such as members selling out to multiple operators, the business has shown its resilience and has achieved pleasing sales and volumes figures for the 2011/2012 financial year.
“As a result of this we are once again able to reward our members with a significant surplus and dividend payment.”
In January this year, the group experienced a significant structural change as it separated from wholesale arm the Today’s Group and Nisa has since flourished despite difficult trading conditions, recently signing a new distribution contract with logistics specialist DHL.
Webster added: “The fact we operate on a low profit margin which is passed back to our membership, demonstrates our unique focus on creating benefits to members rather than to the central business or profits for external shareholders.”