Co-operatives are starting to reap the rewards of The Co-operative Group's acquisition of Somerfield.

Trading profits and margins have boomed as the Co-operative Retail Trading Group leverages its bigger buying clout to forge stronger deals, according to the latest annual reports of many societies in The Co-op Group's buying group.

Midlands Co-operative Society, the UK's second-biggest co-op, last week reported an 18% rise in trading profits to £26.4m for the year to 22 January.

It said the Somerfield acquisition had "contributed significantly" to the figure. It made a one-off payment of £6.3m to the Co-op Group during the year towards integrating Somerfield into CRTG.

"In 2010, we saw the positive impact of enhanced buying terms and cost base efficiencies achieved," the directors said in the report. "The society has seen a consequent strengthening of operating margins in food stores, which has contributed significantly to the increased trading profit."

Midcounties Co-op, the UK's third-biggest co-op, also gave the nod to Somerfield for its record 35% increase in trading ­profits for the year to 22 January. "The food profits reflect the continued growth in sales and the benefits from the integration of Somerfield," it said in its annual report. It paid £6.2m during the year towards ­integration costs.

Chelmsford Star Co-op, which reported a record trading profit of £2m, added in its report: "The benefits to Chelmsford Star of the Somerfield acquisition are significant and will enhance our food margins for many years to come."

However, Scotmid and East of England were less effusive about the impact of the 2009 takeover on their businesses.

Although Scotmid said profits had been boosted by "the buying benefits passed on", it admitted margin benefits had fallen short of estimates. East of England, meanwhile, partly blamed a drop in its trading profits from £15.1m to £11.7m on a one-off payment it made towards integration costs.

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