Scotmid Co-operative delivered a £2m trading profit (for the 26 weeks ended 29 July, 2017) in-line with last year. This was a solid start to the year achieved through innovation and efficiency measures despite significant cost pressures.
- Trading profit of £2m for the 26 weeks ended 29 July 2017 – in-line with the same period last year.
- Strong balance sheet with assets of £93m
- Impact of National Living Wage; Rating revaluation and Apprenticeship Levy
- Successful Community Connect trial
The past six months has seen the Society deal with a period of continued uncertainty, including a sluggish retail market and cost increases from the National Living Wage, Scottish rating revaluation and Apprenticeship Levy.
John Brodie, Chief Executive of Scotmid Co-operative said, “Scotmid delivered another solid half-year performance against the background of continued uncertainty and cost pressures. The trading profit was £2m, in-line with the equivalent period last year, with turnover of £182m slightly down on last year.
“The result was achieved in a period when the Society had to absorb significant additional costs including the Scottish rating revaluation, apprenticeship levy, increased costs of imported goods and the ongoing impact of the National Living Wage.”
“The Society’s food convenience business performed well with like-for-like turnover growth driven by the continued roll-out of food to go and efficiency enhancements from our ‘make it simple’ programme. Our Semichem stores delivered a sales performance ahead of the non-food market in Scotland, but was impacted by supplier price increases. Scotmid Property had a very successful six months and made significant progress with the diversification of our investment portfolio.
“The Society’s surplus before tax at the half-year was £1.4m, £1m up on 2016 and this improvement was largely due to the profit crystallised from the sale of a central Edinburgh investment property.
“A trial of the Society’s new community initiative, Community Connect, was launched in our North Region in April. Our members in the North Region will vote to decide the first beneficiaries of the scheme at the OGM in Brechin in early October – this has been a successful trial and has been well-received by our Members.
“I expect the second half of 2017 to be equally or even more challenging with increased cost growth from external factors and the continued market uncertainty over the Brexit outcome.
“Consequently we will continue to focus on innovation and our ‘make it simple’ programme in order to overcome these challenges and invest for long-term sustainable growth.”