CJ Lang & Son shares cautious outlook as pre-tax profits grow 8% to £4m
Dundee-based SPAR wholesaler and convenience retailer CJ Lang & Son Ltd has reported a 14.2% rise in net turnover to £253 million and an 8% increase in pre-tax profits to £4m for the year ended 28 April 2024.
In the last year, the family-owned business, acquired 12 new company stores – three former Eddy’s Food Station stores, together with nine Scotfresh Group convenience stores.
All of the new locations are now being converted into the SPAR Scotland family as part of the business’ continued investment over the past 12 months. This includes several major store refits at Kilwinning, Lawthorn and Erskine.
CJ Lang & Son’s chief executive officer Colin McLean told Scottish Financial News: “We have delivered robust growth over the last 12 months and achieved another year of strong sales and profits. However, this year the summer was against us and the year ahead presents challenges we must be prepared for.”
Mr McLean shared a cautious outlook for the year ahead, citing “rising operational costs, combined with changing consumer habits and supply chain unpredictability” as “critical factors that will continue to shape the year ahead”.
He added: “Rising operational costs, combined with changing consumer habits and supply chain unpredictability are critical factors that will continue to shape the year ahead.”
Mr McLean said the business will prioritise maximising its current investments and assets such as the roll-out of its exclusive Barista Coffee opportunity, together with digital screens and electronic shelf edge labels which are helping modernise the overall customer shopping experience.
Regarding the upcoming Autumn Budget, chairman Jim Hepburn highlighted potential National Insurance contributions increase and benefit cuts affecting pensioners as areas of concern.
He said employment levels will likely be affected by the NI increase across the sector and wider market, and benefits reductions will lead to reduce customer spending.
Mr McLean concluded: “As a genuinely Scottish family-based business, we are well positioned to continue our journey to meet the needs and support of our customers with the best that SPAR Scotland can offer.
“Our stores serve communities of all sizes across Scotland; our customers are our neighbours. I would like to thank them, along with our suppliers, independent retailers and all our colleagues, for their continued support.
“Whilst we recognise there are still a number of opportunities to gain from our business turnaround at SPAR Scotland, we are delighted that the business has picked up a number of high profile awards over the past 12 months, at both local and international level.”
Additionally, CJ Lang & Son’s head office in Dundee has also undergone a major refit, encouraging colleagues back into a modern, relaxed environment.
Building for future supply chain success, there has also been significant investment in vehicles, equipment and forecasting and demand planning systems to improve customer availability.