Member Article

Co-op determined to complete NOMA despite losses

The Co-operative Group “remains committed” to transforming Manchester city centre despite worrying half-year financial results.

The mutual’s chief executive Euan Sutherland confirmed that it will complete the £800m NOMA scheme, which aims to attract thousands of jobs by creating offices, shops, restaurants and hotels on land near Manchester’s Victoria Station.

The Co-op has already completed its new headquarters at One Angel Square.

Mr Sutherland said: “We are still committed to NOMA and looking for another joint-venture partner.

“That remains one of our priorities and there remains a commitment to Manchester in general.”

But he admitted job losses within the group are “inevitable” as it begins a strategic review following severe half-year losses.

The Co-operative Group, which started as the Rochdale Pioneers Society, is the region’s biggest business with a turnover of more than £13bn, a workforce of more than 100,000 and 5,000 trading outlets. Owned by its 7.2m members, it has divisions including food, pharmacies, banking and funeral care.

Last week, the Co-op posted its half-year results. Revenues for the 26 weeks to July 6 fell from £5.83bn 12 months ago to £5.77bn this time around.

It made a pre-tax loss of £559m, compared to profits of £18m in 2012, mainly due to losses by the Co-op Bank, which declared a pre-tax loss of £709m, compared to a £57m loss a year ago.

Mr Sutherland said the Co-op group has a four-year turnaround plan, but added: “It is fairly inevitable that jobs will be impacted and clearly we will have to consult with those affected in the right way but it would not be right to put any more detail on that at the moment.”

This was posted in Bdaily's Members' News section by Simon Malia .