Guernsey members vote to accept 2% divi from Coop

A packed meeting at St Pierre Park Hotel on Tuesday attracted well over a 100 members, with extra chairs having to be brought in for latecomers.

Only three members voted against the motion to pay a 2% dividend with a just handful of abstentions.

A 2% divi, worth some £3m., would be half of the amount paid to members for the last 40 years.

Jersey members were due to vote in a separate meeting last night which was widely expected to confirm the dividend payout.

CEO Mark Cox, chairman Jon Bond and interim chief financial officer Stephanie Hutton all took part in an hour-long presentation before the vote took place.

‘We must balance the payment of the dividend with investment in the long-term future of our Coop,’ said Mr Cox.

‘Given our dividend announcement, it’s understandable that there have been inquiries regarding some of last year’s expenditure, and despite our communication efforts there still appears to be some misunderstanding and concerns.

‘It’s right and appropriate as owners of our business you hold us to account,’ he said.

‘I only ask that this is based on facts and not rumour or what you read on social media.’

He added that the society had suspended all executive bonuses for the financial year.

Mr Bond added that the Coop would reinstate any share accounts closed since the potential for a reduced dividend was first voiced earlier this year.

‘So if you know anyone who has closed their account and they’re missing out on that 2%,’ he said, 'do let them know that we can reinstate them and pay the dividends that have been accrued.

'That’s just a little just a gesture to ensure the members get what they are due.’

None of the questions asked by members after the presentation referred to the dividend payout.

However the implications of the prospective sale of Sandpiper to Morrison’s was raised.

Mr Cox said the Coop would welcome any increase in market share and thought it unlikely that Iceland would tolerate Morrison’s operating its brand.

‘The sad news is that 40 head office jobs will go from Sandpiper in the Channel Islands and that has been kept relatively quiet,’ he said.

‘So we are now the only local food retailer with a head office presence in the islands – that has its benefits and its costs.’

Guernsey stakeholders also voted on two vacancies on the board, with Mr Bond re-elected for a further three years and newcomer Ben Le Huray elected to serve for two years.

Speaking after the meeting, members praised the board's openness on the implications of the financial results.

‘It was a thorough explanation of the situation,’ said Karen Power. ‘I thought they pre-empted the questions brilliantly and the atmosphere in the room was excellent.’

Ruth Sarahs agreed and said the meeting had been really well handled.

‘The speakers were very clear,’ she said. ‘It was made clear it was 2% or nothing, so I was happy to put my hand up.’