Scotmid profits dip amid '˜unprecedented uncertainty'
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But the Edinburgh-based group insisted it had turned in a “strong” underlying performance as turnover for the 12 months to 28 January rose to £376 million, up from £370m a year earlier.
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Hide AdTrading profits came in at £5.3m, down from £5.7m last time, with the mutual pointing to Scottish Retail Consortium figures showing an average decline in like-for-like sales of 0.8 per cent for the wider sector during the year to January.
Chief executive John Brodie said: “Scotmid’s food convenience stores tackled this challenge by adapting to changing customer requirements, driven by the popular food-to-go lines and excellent local products.”
Brodie said the group’s Semichem health and beauty chain continued to find itself operating in a difficult retail landscape, with increased competition hitting sales and pressure on the cost of goods due to the weaker pound, although this has given a boost to many of its stores in Northern Ireland.
He added: “Scotmid Property enjoyed a very positive year thanks to domestic property rental income growth driven by investment and specifically a successful lease renewal of one of the Society’s main commercial properties. Heading into its 90th year, Scotmid Funerals continued to grow and respond to increased local competition.”
Following the introduction of the national living wage, Brodie said that Scotmid has responded by accelerating its efficiency initiatives during a year that saw “unprecedented uncertainty influenced by the Brexit referendum and the US election result”.
He added: “I expect this political and economic uncertainty to continue in 2017 as the United Kingdom negotiates the terms of exit. Additionally, the ongoing cost challenge of the national living wage will be magnified by further costs arising from the apprenticeship levy and the recent rating revaluation.
“Consequently, 2017 will be another challenging year. In response to this generally unfavourable background, Scotmid will continue to seek out new sales initiatives or innovative cost control measures as part of our continuous improvement philosophy which has served the society well for a number of years.”