Armed forces service provider Naafi has moved back into the black this year after dramatically reducing operational costs.
British operations, which have underperformed the rest of the group in recent years, were still marginally loss making, but stronger results in the international division, which now includes Northern Ireland, helped Naafi post a £0.5m profit for the year to April 2002, compared to last year's losses of £20m. Sales edged up from £258.6m to £261.6m.
Although a supply contract with Spar has boosted its retail fortunes in recent years, Naafi plans to exit Britain by about 2005 as the MoD consolidates its leisure, catering and retail activities into one stop shops run by third parties such as Compass and Sodexho.
Naafi retail outlets outside military bases will either be consolidated into the one-stop shops or sold to c-store operators.
Naafi chief executive Chris Reilly said a renewed focus on driving up availability, tackling shrinkage, and better labour scheduling had helped reduce the loss making leisure/retail sites in the British estate from more than 100 to less than 30 over the last year. About 11 retail sites are earmarked for closure.

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