Co-operative Group revenues up 27.1 pct; Co-op Bank profits up

The mutual company, which is run democratically, by its 4.5 million members, beat all other major supermarket groups who reported over January figures between 3.7 (Sainsbury's) and 4.9 pct (Tesco's).

Co-op. however, remain adamant that despite a "historic year" the waters ahead are "still choppy".

The Group, which sells banking, insurance, funeral care and drugs, are the fifth largest food retailer in the UK, with a unique 'ethical' business model that promises customers both 'value and values'.

"It may be that the UK does not start to see real economic growth until the end of 2010 or as late as the beginning of 2011."

"Therefore, sustaining the level of success we have enjoyed over the last two years will not be easy." added Co-op Chief executive Peter Marks.

The level of success that the Group sustained is partly due to its integration of Somerfield's supermarket business which saw a disposal programme of stores bring in almost 10 pct gains in revenue (£650m).

Net debt at the company remains high after soaring to £1.665bn from £531m last year although the ratio to EBITDA remains low at 2.3 (2008: 1.2).

Co-operative bank, the only listed operation of the business saw underlying profits rise 11 pct.