Bestway has revealed plans to open the first new Batleys depot in five years on the back of record profits.
The cash and carry operator announced that annual turnover had grown by 26% to £1.7bn and profits have risen by 27% to £73m for the year to June 2006. These were Bestway's first full-year results since it bought the Batleys business in January 2005 for £100m.
The group is planning to open its 50th warehouse in Edmonton, London, in March, while the new Batleys warehouse is set to open in Gillingham, Kent, in July. Bestway said that it would be making an initial investment of £11.5m to cover the two projects. This is in addition to the £25m invested in existing locations and developments over the past year.
Group chief executive Zameer Choudrey said the sites were examples of its continued commitment to the cash and carry sector. He added that the results were due to the Batley's acquisition and warehouse expansion.
Over the past few months Bestway has been linked with a bid for Nisa-Today's after the buying group announced plans to merge with Costcutter.
Choudrey said: "Bestway will continue to focus on organic growth through investments in existing and new warehouses and initiatives. At the same time, the group continues to evaluate possible acquisition targets."
According to Bestway, the group now commands a 17% share of the food, drink and tobacco wholesale sector.
Bestway is launching a range of pound lines. It includes more than 300 products, from freezer bags to children's toys and sweets, and will offer a mark-up of more than 70%.