Coffee merchant Matthew Algie enjoying the sweet aroma of profit

MATTHEW Algie, the Glasgow-based coffee merchant, returned to profit last year despite increases in raw coffee prices and pressure on consumer spending.

The firm, which ranks as the UK's largest independent coffee roaster, reported pre-tax profits of 1.15 million in the year to 31 December compared with a loss of 734,000 in 2008 mainly caused by exceptional items.

Turnover rose by 7 per cent to 29m and in their report to the accounts the directors described it as "successful year".

The number employed by the group, which was founded in 1864 as a grocer buying tea from clippers on the Clyde, edged up to 210 from 206 in 2008. Total boardroom pay fell to 423,073 from 512,280, although the highest paid director saw their pay package, including pension contributions, increase to 239,952 from 206,072, the figures from Companies House reveal.

The company's customers include the likes of Marks & Spencer, Pret a Manger, Gleneagles Hotel and the Scottish Parliament, plus a raft of smaller independent coffee retailers which together account for around 40 per cent of group turnover. This summer it unveiled a rebranding strategy to help raise its profile. The coffee shop sector in general has proved resilient to the economic downturn with new outlets in the UK rising by about 7 per cent last year.