Scotmid has defied the summer washout to increase profits in its first results presented by new chief executive Karen Scott.

The Edinburgh-based co-operative declared it had shown “resilience” amid a challenging economic backdrop as it reported interim profits of £2.1 million for the 26 weeks ended July 27, up from £1.5m at the same stage last year.

Scotmid, which owns 180 convenience stores and owns property, a funerals business, and the Semichem retail chain, cited “headwinds” in the form of rising wage costs, high interest rates, and the ongoing cost of living crisis in a tough first half.

But Ms Scott, who officially took over from long-term chief executive John Brodie on August 14, said the “biggest single factor affecting the interim results was undoubtedly the exceptionally wet summer weather”, which undermined shoppers’ willingness to spend.

The 165-year-old society, which increased turnover by £2m to £214m in the first half, said consumer confidence remains “negative” and has responded by controlling store costs and investing in technology. This allowed the society to offset reduced sales volumes and footfall in its convenience stores over the period.

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“It was a really positive result for the society,” said Ms Scott, who was formerly chief operating officer at Scotmid, and previously headed its Semichem business. “There have been challenging times. The economy has been difficult, [and there has been a] cost of living crisis, but we are really pleased with the results that we have achieved in the first half of the year.”

Asked to comment on the effects of poor summer weather in the first half, Ms Scott told The Herald: “We often say when the sun shines people are much happier, they spend more, and when the sun doesn’t shine it can have an impact. I guess from a Scotmid perspective, rain or shine, we are here to serve our communities.

“We have had a few days of sunshine [recently] and it has helped to boost sales.”

Although energy cost inflation has moderated, Ms Scott said prices remain significantly higher than they were before Russia invaded Ukraine in early 2022.

“I think it is important to say that while energy prices have come down, they are nowhere near the pre-war prices,” she said. “They are still considerably higher, [and] all indications are that energy is going up again. We hedge on energy, but I think importantly we are looking at how we reduce our energy consumption. We have got solar in our Bo’ness store, and we are looking at other ways in which we can reduce our consumption as well.”

Scotmid Funerals carried out few services in the first half, in line with market trends, as demand for direct to cremation funerals increased.

Last week, the society announced it had acquired The Independent Family Funeral Directors Limited, which trades as Fosters, for an undisclosed sum. Fosters operates 24 funeral homes, with the deal lifting the number owned by the co-operative to 40, mainly located in the central belt. Fosters’ 80 staff have joined Scotmid.

Asked to comment on the deal, Ms Scott said: “We are always looking for opportunities to grow and when that acquisition became available we expected it could transform our funeral business. It is a really good geographical fit, they have got some really good funeral homes, and that will make us one of the largest funeral operators in Scotland.”

Ms Scott added: “Whenever we acquire a business we like to take the time to learn about that business before we make any decisions. All staff have come over and the funeral homes are operational.”

Commenting on the outlook for the second half, Ms Scott said Scotmid was at the onset of its “golden quarter” but warned: “There is still a cost of living crisis and a lot of uncertainty with the new Government. All [the] indications are that there are going to be some tough decisions in the Budget. We have delivered a positive in the first half and we would look to build on that in the second half.”