Generous Co-operative members give £1m dividend to good causes
Generous members of The Co-operative Group have donated more than £1m of their interim dividend to charities and community groups.
In the first half of the year, the Group’s 4.8 million members who used their dividend card, earned a total of £16.9m* and those who have accumulated at least £2 will be receiving a payout in the next few days.
However, because half of those receiving a payment have elected to give all, or part, of their share of the profits to charity, £1.2m will also be distributed amongst community groups.
Members receive a cash payment based on the points they earn when they trade at any of the Group’s businesses, which include: The Co-operative Food; Travel; Pharmacy; Funeralcare; Electricals; Motors and Legal Services as well as The Co-operative Bank and The Co-operative Insurance.
The points earned vary across the Co-operative’s family of businesses but in Food, Pharmacy and Electricals members receive one point for every £1 spent.
The interim payment, which will be paid in the form of vouchers or into a bank account, is based on 1p per point but the annual dividend is determined by the Group’s Annual meeting. In 2009 each point was worth 2p.
Peter Marks, Group Chief Executive: “Our interim profits increased by 14 per cent, so I am delighted that our members are sharing in this success and thanks to their generosity it will make a real difference to many charities and local groups that are doing such great work in the local communities we and they serve.”
*This is an interim payment that equates to each point being worth 1p. The full profit share payment for 2010 will be decided at The Co-operative Group’s Annual Meeting in May 2011. If the value of a point is declared to be worth more than 1p, a retrospective payment will be made and applied to all points earned in the first half of the year.
In most cases a member will earn one point for each pound spent, however there are some exceptions.
|Spend £10 a week in a food store
|Spend £1,000 on a holiday in Travel
|Have a mortgage with the Co-operative bank of £50,000**
|Spend £400 on a television
|Total Share of Profits
This example is for illustrative purposes and shows what a member will typically have received for purchases made between 1 January 2010 and 30 June 2010. For 2010 the interim value of a point was 1p. The value of a point is dependent upon the financial performance of Co-operative Group Limited.
**Half the mortgage balance is taken for interim payment
A summary of how points are earned
||Number of points awarded|
|Food, Pharmacy, Funeral and Online Stores
||1 point for every £1 spent|
|Travel and Legal Services (Wills)
||1 point for every £2 spent|
|Legal Services - conveyancing
|Pharmacy - Prescription Collection Service / Prescription Collection and Delivery Service
||1 point for every £5 spent|
|Petrol stations - fuel
||1 point for every £10 spent|
|Funeralcare - funeral planning
||2,500 points for a funeral plan not applicable to any other product or service|
|Co-operative Bank or smile credit card
||1 point for every £10 borrowed, based on an average of your monthly statement balances |
|Co-operative Bank or smile current accounts
||1 point for every £10 based on average quarterly credit balances held|
|Co-operative Bank or smile loan
||1 point for every £10 outstanding on the loan|
|Co-operative Bank, smile or Britannia savings
||1 point for every £20 held on average during the year|
|Co-operative Bank or Britannia mortgage
||1 point for every £40 outstanding on mortgage, based on outstanding balance held on 30 June and 31 December|
|Co-operative Bank flexible loan
||1 point for every £10 borrowed on average based on the average of the monthly balances outstanding on the loan|
|Co-operative Insurance policies
||250 points for holding a policy (125 points for 6 months) awarded proportionally for each full month held|
Full details of how points are earned are listed on the website: www.co‑operative.co.uk/membership.
Becoming a member of The Co-operative Group costs just £1. Members earn points on the trade they do with all the Group’s businesses and these are then converted into a share of the profits with payments being made twice a year in June and November. Because the payments are linked to the profits of the Group, the value of the points varies year on year.
Members will receive their individual payments either directly into their bank account or in vouchers that can be spent or converted into cash in the Group’s outlets.
For more information contact:
Public Relations Manager
The Co-operative Group
Tel: 0161 827 5614
Mob: 07702 152771