YORK-based supermarket group Costcutter has reported a fall in revenues though second half performance saw a return to year-on-year growth.

The Dunnington-headquartered group, which operates predominantly as a franchise business, saw revenues fall from £776 million in 2014 to £707 million.

However with turnover returning to year-on-year growth in the second half of 2015, EBITDA (earnings before interest, tax, depreciation and amortisation) came in at £10.5 million for the year ending December 31, 2015.

The results were filed under Costcutter's parent company, Liverpool-headquartered Bibby Line Group, which saw revenues dip 15 per cent to £1,450 million, resulting in a fall of pre-tax profit from £44 million to £29.5 million.

The Group said Costcutter is now seeing sales growth month-on-month with "stable overheads", adding: "the performance through the second half of the year and early 2016 underpins confidence in the business which expects to play a leading part in any future sector consolidation",

Costcutter Supermarkets Group is predominantly a franchise business, with more than 2,600 convenience stores throughout the UK.

Founded in 1986, the Group directly employs more than 900 people nationwide and has its head office in York, and an office in Belfast.

The business, which also includes Mace and Kwiksave brands, has outline ambitions to more than double in size over the next few years.

Bibby Group, which has a wide portfolio of interests spanning retail, shipping, marine services, logistics and financial services, said that historic lows in shipping rates and oil prices, food price deflation, and continued low interest rates all contributed to reduced turnover and operating profits.

Michael Bibby, managing director of Bibby Line Group, said: "As a business we have responded to these challenges and have again focused on developing unique products and services, productivity improvements and reviewing where we can consolidate the market segments we operate in.

"Looking ahead, we're in a strong position. We have the appropriate financing in place to handle unexpected events whilst taking up exceptional investment opportunities to deliver an even better business as the next upturn approaches."

Paul Drechsler, chairman of Bibby Line Group, said: "Throughout 2015 we saw challenges in many parts of our sectors and geographies.

"The year ahead seems set to be at least as challenging as a result of global and economic uncertainties, compounded by risks and unknowns associated with the EU Referendum, which will impact supply, demand and pricing in many of our businesses.

"The Group will continue to execute its strategy, accelerating pace where necessary and capitalising on the opportunities that will inevitably arise in such circumstances."