Scotmid deliver strong first-half performance without weather boost, but expect more challenging second-half
- Trading profit of £2.5m for the 26 weeks ended 27 July 2019; up 8% on the equivalent period last year.
- Turnover up £3m to £190m
- Food convenience business performs strongly despite cooler summer weather
- Strong balance sheet with assets of £104.5m
- £325,000 raised for charity partner, Scottish SPCA
- Society celebrates our 160th anniversary on 4 November 2019
Scotmid Co-operative delivered a £2.5m trading profit for the 26 weeks ended 27 July 2019; up from £2.3m in 2018. This positive result was delivered without the benefit of last summer’s record-breaking sunshine.
John Brodie, Scotmid Chief Executive, said: “We’re pleased to announce another strong half year performance – achieved in the face of challenging cost pressures and the uncertainty surrounding Brexit.
“Food convenience and property were the main drivers of growth. The performance of our food stores was particularly encouraging with the continued work on our “famous for food” strategy helping to drive growth in a summer period which did not compare with the record breaking summer the previous year. Our property business benefitted from new lettings and rental income growth.
“In the face of the significant market challenges for non-food retailers, Semichem held its position assisted by successful cost control. Funerals conducted were down compared to a very strong result at the interim stage last year, reflecting the cyclical pattern of this business.
“Scotmid has been serving our communities for 160 years and in recent times this has been demonstrated by a range of community support including the Community Grant scheme, Community Connect and funds raised for our charity partners. A few weeks ago saw the conclusion of our charity partnership with the Scottish SPCA, RSPCA and USPCA with the magnificent sum of £325,000 being raised to help fund the education of primary schoolchildren about animal welfare.
“Last year I highlighted the importance of innovation, effective investment and cost control to help us on our journey of continuous improvement moving into Scotmid’s 160th anniversary year.
“At the interim stage, the Society has performed strongly despite less favourable weather and the delay and ongoing uncertainty surrounding Brexit. The position on Brexit remains unclear and the possibility of a “no deal” makes it hard to predict the impact on the Society’s second half performance. The Society will therefore continue to focus on matters within our control and celebrate the success of Scotmid’s 160 years of serving our communities and improving people’s everyday lives.”