Capricorn profit up 25%

A boost in Capricorn Society’s profits has prompted the cooperative to announce a $16.7 million return to members.

The society has reported after-tax profit of $17.5 million - a 25 per cent increase on the 2012-13 financial year - coming from revenue of $89.7 million.

Revenue was derived as a proportion of cash flow from members, who purchase goods through the Capricorn Society, which was $1.3 billion - an increase of 9.5 per cent compared with the previous year.

As a result of the positive results, chairman Colin Heavyside announced in the society’s annual report that members would get an additional dividend.

The ordinary 11 per cent dividend would be paid to members, as well as an additional 4 per cent dividend.

That would deliver members a payment of $11.4 million (compared with $7.6 million for FY2013) and franked tax credits totalling $5.3 million.

The results come from the Capricorn board’s strategy to consolidate its business, which prompted the closure of its South African business in March this year.

It has also taken a focus of improving services to members, which it credits for the increase in member purchases through the society.

This year it also launched what it terms a one-stop risk solution shop for members called Capricorn Risk Services.

It combines Capricorns risk protection services with its insurance services and is a core focus in order to achieve growth in the current financial year.

The society also paid $15.1 million for the former Forge Group head office in West Perth, to where it has relocated from Burswood.