Macphie, the Aberdeenshire food ingredients maker, has reported a “healthy” rise in turnover though profits cooled amid a “more challenging backdrop”.
Releasing its financial results for the year to March 2018, the Glenbervie-based firm posted a 3.3 per cent increase in turnover to £55.7 million. Gross profit margin dipped to 25.4 per cent, from 28.4 per cent in 2017, with operating profit falling to £3.1m from £5.9m.
Newly appointed chief executive Andy Stapley said: “In 2017, Macphie returned a record profit in what were very favourable market conditions. Against a more challenging backdrop this year, this is a positive set of results.
“The sector operates with tight margins, as we continue to produce premium products in a highly competitive industry which has seen some well-publicised challenges in the UK casual dining sector.
“Inflationary pressure in the period combined with volatility in the raw material market – especially dairy products – did present some headwinds.
“Our investment of over £5m in technology in the last two years means we are able to drive stronger operational performance and productivity.”
Chairman Alastair Macphie added: “Our focus at Macphie 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.
“Given the challenging market environment, these results reflect a balanced and resilient business.
“With the current political landscape giving the UK an uncertain economic outlook, as a business we will continue to monitor developments and act to minimise any adverse impact.”
The company employs more than 300 workers across three sites – its headquarters in Glenbervie in Aberdeenshire, its facility in Tannochside in North Lanarkshire and its Midlands “centre of excellence” outside Coventry.