Scotmid suffers slump as profits drop to £2.6 million

Scotmid, the Edinburgh-based convenience store chain, has suffered a slump in profits as it faces up to tough economic conditions.

The company, which has its headquarters at Newbridge, saw trading profit fall to £2.6 million in the half year to the end of July, much lower than the £4.2m figure it recorded a year earlier.

During the period, it increased its turnover by £32m, to £210m, after it snapped up Botterills last November.

John Brodie, chief executive of Scotmid, said: “The key factor driving the trading results was the deteriorating economic environment.

“As I highlighted at the year end, Scotmid finds itself in a new era of reduced consumer spending power and increasing costs such as the increase in VAT.

“The society, however, remains in a strong financial position with assets of over £100m and other areas of the business performing well.