INVESTMENT in new products and infrastructure has taken its toll on profits at AFG Media, the company behind the Morphsuits fancy-dress costume craze.
The company, which is backed by £4.2 million from the Business Growth Fund, saw a pre-tax loss of £162,943 in the year to 31 May, compared with a profit of £1.08m the previous year. Sales slipped to £10.1m from £11.05m.
The directors said they continued to “invest ahead of the curve” to support the Gullane-based company’s long-term strategic objectives.
“As we invest in achieving our longer-term goals, we have seen a reduction in short-term profitability,” they added.
Deals struck by the company during the year included one with Marvel to supply superhero costumes based on characters including Spider-Man.
The business was founded by brothers Fraser and Ali Smeaton and Gregor Lawson in 2009 after they began selling Morphsuits in their spare time.
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