Spar and Lang hit by squeeze

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THE squeeze on consumer spending and changes at one of its major customers led to a 64 per cent drop in profits at Dundee-based wholesaler CJ Lang.

The family-owned firm, which is the master franchisee for convenience store chain Spar in Scotland, saw pre-tax profits drop from £5.5 million to £2m. Once the £1.2m gain on the sale of its cash-and-carry unit to Yorkshire-based Batleys in late 2010 is stripped out, profits still fell 53 per cent.

Managing director Scott Malcolm said the sale of one of its major customers – Blantyre-based Botterills, which was taken over by Scotmid – had affected the results for the year to 30 April, with like-for-like sales falling to £200m from £208m.

CJ Lang paid out a £1.12m dividend to chairman Joan Scott-Adie and her family, the same payout as in 2011.