Iceland results heat up buyout contest
The potential buyers circling Iceland are likely to become hungrier after the frozen food retailer announced record annual sales and profits.
Malcolm Walker: Wants 'independent future' for Iceland
But chief executive Malcolm Walker, who together with other members of his team owns a 23% stake, delivered a thinly-veiled warning alongside the results that Iceland's management wanted it to have 'a strong, prosperous and independent future'.
Mr Walker and his colleagues are understood to be considering mounting their own bid after collapsed Icelandic bank Landsbanki said it would sell its 67% shareholding this year.
Rivals also said to be in the £1.5bn race include Morrisons, Sainsbury and Asda.
And this week Waitrose boss Mark Price said it would be interested in buying Iceland stores but not the whole chain or a majority stake.
The chain, which operates 796 stores, reported a 14.8% rise in underlying profits to £155.5m in the year to March 25.
Sales including new stores increased 5.9% to £2.4bn, while like-for-like sales were up 2.1%.
Mr Walker said: 'I am delighted to report yet another record result for Iceland. This is the sixth consecutive year of growth that my colleagues and I have delivered since we returned to manage the business in February 2005.'
He acknowledged that Landsbanki's decision to sell its stake had 'inevitably' created uncertainty.
'My colleagues and I will work constructively to bring this process to a satisfactory conclusion. Our own objective is to ensure that Iceland has a strong, prosperous and independent future, and continues to serve its customers for many years to come,' said Mr Walker.
He added that the company was highly profitable, cash generative, virtually free of debt, and intended to open a further 15 stores in the coming year.
Industry sales figures released last month also increased the pressure on buyers potentially considering bids.
Kantar Worldpanel said Iceland's revenues increased 5.7% in the 12 weeks to May 16, outperforming the grocery market's 4.8% overall rise.
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Blue Whale fund manager on the best of the Magnificent 7
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Mail Online takes a tour of Gatwick's modern EV charging station
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- How to invest for income and growth: SAINTS' James Dow
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Land Rover unveil newest all-electric Range Rover SUV
- I wanted to return £12,000 of wedding clothes from...
- Scottish Widows gave me access to a stranger's £40,000...
- The 10-minute rule that could save you from a parking fine
- Saudi Aramco to pay £100bn dividend to help fund city of...
- MP condemn woke ESG debanking as 'legitimate' firms are...
- Big Four auditors fined £9m for the London Capital &...
- Could the Bank of England really cut interest rates this...
- Brewdog founder James Watt steps down to become 'captain'...
- Disney+ streaming service finally turns a profit as cost...
- Boohoo sales plummet as debts surge
- Tesco uses AI to give millions of Clubcard holders...
- Events planner Informa hikes share buyback scheme to £500m
- JLR offering £150 a month towards the cost of insuring...
- Investors pull cash out of UK equity funds for the 35th...
- Boost for City as BP vows to keep its London listing -...
- Zalando has sporting chance of summer boost after...
- Kier Starmer and Rachel Reeves don't have that 'vision...
- Grieving relatives face long waits on hold to the probate...