Co-op members to get £8.9m payout

The UK's largest co-operative society is to pay its customers a total of £8.9m as an interim dividend under its profit-sharing scheme.

The Co-operative Group said that in the six months to 20 June, 2.1 million members had earned a share of profits.

Half of those benefitting have elected to donate some of their dividends - a total of £500,000 - to charity groups.

The Co-op's businesses include food retailing, pharmacy, travel, property, farming and funeral services.

Patrick Allen, the Co-operative Group's marketing director, said: "As a co-operative organisation it is our members who benefit from our financial achievements and no faceless City traders can speculate on our business."

Profit-sharing

Earlier this year the Co-operative Group unveiled a three-year plan to double profits and invest £1.5bn in transforming its retail estate.

Chief executive Peter Marks said he wanted to focus on a single unified brand for the business following a merger between the Co-operative Group and United Co-operatives in 2007.

The interim dividend is £2m higher than at the same point last year. In 2007, 1.75 million customers received an interim dividend of £6.7m and a full-year dividend of £38.1m.

Members earn points when they trade with the group and these are then converted into a share of the profits.

The profit-share scheme, which was re-launched in 2006, was a return to the traditional dividend or "divi" that ceased 30 years ago - with customers paying £1 for membership.

The "divi", which was a paper-based system, was phased out by some of the larger Co-op groups in the 1960s and 70s because it was expensive to operate.

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