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.
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