Aberdeenshire food manufacturer Macphie sees profits fall in competitive market

Food ingredients manufacturer Macphie has seen sales edge up on the back on new customer wins but underlying profits fell amid a highly competitive trading environment.
International business wins have led Macphie to significantly expand facilities at its Tannochside site in north Lanarkshire. Picture: ContributedInternational business wins have led Macphie to significantly expand facilities at its Tannochside site in north Lanarkshire. Picture: Contributed
International business wins have led Macphie to significantly expand facilities at its Tannochside site in north Lanarkshire. Picture: Contributed

The Aberdeenshire-based firm, which produces ranges including icing and custard sold to customers including bakeries, saw turnover rise by £300,000 to £56 million in the year to March.

Gross profit jumped 26.6 per cent but underlying operating profits fell to £1.2m from £3.1m the previous trading year.

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Chief executive Andy Stapley said it had been an “encouraging performance in a highly competitive industry that operates on very tight margins”.

“We have been investing in growth so a rise in both turnover and gross profit shows we’re on the right track,” he said.

“The long shadow of Brexit has created uncertainty in global markets but our outlook remains positive as we work to secure our supply chain.”

He said several new business wins with international brands have led the firm to significantly expand facilities at its Tannochside site in north Lanarkshire.

The company, which was founded in 1928, employs over 300 workers its sites which also include Glenbervie in Aberdeenshire and a Midlands facility outside Coventry.

Chairman Alastair Macphie said: “Our focus has always been on achieving stable and profitable growth that provides jobs and creates wealth in the local area, rather than maximising short term returns for shareholders.

“Our established customer relationships and detailed insight into consumer trends mean we are well placed to maximise developing market opportunities. Given the challenging market environment, these results reflect a balanced and resilient business.”