Scotmid Co-op reports solid performance but‘challenging year’ awaits in-store | TalkingRetail.com

Scotmid– the largest independent Scottish co-operative– has posted a“solid” set of results in the year ended 29 January 2011 with operating profits of £9.1m, despite “substantial challenges”.

Top line turnover grew by£24m to £378m, helped by £16m of additional turnover from the acquisition of Botterills Convenience Stores. The bottom line surplus after tax was £9.6m, a record result for the Society, benefitting from the one-off profit from the sale of its Leith superstore. Additionally the Society’s assetbase has increased by £10m to £100m.

John Brodie, chief executive of Scotmid, said:“A change in economic conditions was experienced in our final quarter and although less of an issue than the general economy the prolonged period of adverse winter weather was also a factor that impacted on all the Society’s trading businesses. I have, however, to pay credit to our staff many ofwhom had to battle through horrendous conditions to help ensure that our stores were kept open.

“All our divisions showed progress with the exception of Semichem which was the main reason for the reduction in the Society’s surplus. Semichem was hit particularly hard by the economic downturn in Northern Ireland; a reduction in cross border trading and the rise in VAT.

“Food convenience retail delivered solid profit growth and property also made progress despite the ongoing difficulties facing the general property market. The funeral business had an exceptional year with significant increases in the number of funerals arranged and funeral bonds written.

“It has been a year of change for the Society in many respects. Externally the change was felt in the form of a significant downturn in the economy in the markets we trade. Internally we have managed significant strategic change through the disposal of our largest food store in Leith and the acquisition of 51 Botterills Convenience Stores.

“We continue to grow our new fine fragrance brand The Fragrance House which now has five stores in Scotland attracting customers looking for a broader selection of fine fragrances.

“During the last 12 months, further progress has been made implementing the democratic changes arising from the constitutional review. The regional committees are now fully established and a new membership strategy is nearing completion.

Source: Scotmid

Source