Midcounties Co-operative Society has posted record half-year profits, up 34% to £16m.

Total sales for the past six months rose 6.1% to £375m, with food sales up 6.4%.

"Despite these very promising figures, I can only foresee that 2011 will be another tough year, with all of the predicted public sector cuts under way," warned Midcounties' long-serving chief executive Ben Reid.

"Sales growth will be hard to achieve but that will be our focus as we push hard to emerge fitter and stronger [from the downturn] for the future."