Convenience store group ADM Londis has reported almost 10 per cent growth in profits to €8.62 million in 2003 despite costs associated with the reorganisation of the group.

Londis, which has 300 stores around the State, saw wholesale turnover climb 13.9 per cent to €293.56 million in the year. Sales through the group's outlets topped €500 million.

Mr Stephen O'Riordan, joint chief executive told the group's annual general meeting in Enfield, Co Meath yesterday, that: "We are very pleased with our sales growth in what was a very competitive year for the retail sector."

In a statement, the company said the 9.4 per cent growth in profits was "a strong result considering costs relating to the reorganisation of the group", a reference to the integration of the Topshop group that Londis bought in May last year.

Chairman Mr Leo McCauley stood by ADM Londis's recent decision to reject a €35 million offer from BWG, owner of the Spar franchise in Ireland. He told delegates that the offer was neither "strategically nor financially in the best interests of retail members, the staff of the group".

"We trust the board's rejection of the offer will end speculation about the future and allow the board to focus on the development of the group," he said.

The BWG offer was the latest in a series of approaches to the group from other convenience store groups in the State. It was unanimously rejected by the board.

Mr O'Riordan was reported earlier this month saying that would look at "alternative shareholder structures" that would offer the group's 150 shareholders some liquidity.

He said the group was enjoying "improved synergies" following its decision to buy the Topshop chain of stores. No price was put on the acquisition at the time, but the 120 store group, owned by Tedcastle Holdings and supplied by Londis, was said by industry sources to be worth between €7 million and €9 million.

"This acquisition has resulted in even more efficient operations and greater bargaining power both from a buying and a marketing point of view," he said.

The group has created a new Londis Plus brand as part of the integration of the two groups. It will be confined to ADM Londis's larger stores, those with 5,000 sq ft or more of floor space, which are competing in the supermarket sector rather than the convenience forecourt or corner stores sectors.