Co-op Group announces 2.5bn pounds loss

The Co-operative Group, one of British biggest mutual business company, Thursday announced losses of 2.5 billion pounds (4.20 billion U.S. dollars) for 2013, the worst results in its 150-year history. The data was significantly bigger than 529 million pounds in 2012. Most losses yielded from the Co-operative Bank, which mounted to 2.1 billion pounds, said the group in a statement. Last week, the group's 30 percent-owned bank reported pre-tax losses of 1.3 billion pounds for 2013, and said it did not expect to make a profit this year and a year later. The group's sales last year was 10.5 billion pounds, slightly lower than 11.0 billion pounds a year before. In 2013, the Co-operative Group realized operating profit of 210 million pounds, down 29 percent from 297 million pounds in 2012, the figures showed. Richard Pennycook, interim group chief executive, said:" 2013 was a disastrous year for The Co-operative Group, the worst in our 150-year history." "The results demonstrate that but they also highlight fundamental failings in management and governance at the group over many years. These results should serve as a wake-up call to anyone who doubts just how serious the challenges we face are," said Pennycook. Ursula Lidbetter, chair of the group, added:" Now is the time to put that right through fundamental reform - we have to act with urgency if we are to lay the foundations for a stronger, healthier co-operative business in the future." The Co-op Bank is considering issuing new shares of stake to raise capital in order to fill its 400 million gap. As a result the group would seek another 120 million to maintain its 30 percent shareholding in the bank. (1 pound=1.68 U.S. dollars)