Costs slice into profits at Campbells Prime Meat

Campbells Prime Meat, the Linlithgow-based food supplier, saw operating profits fall by more than a third last year as higher costs took the shine off an increase in sales.

The firm, which supplies fish, fresh meat and delicatessen products to hotels and restaurants across Scotland, reported a 7 per cent increase in sales to £50.2 million for 2011, according to accounts filed at Companies House.

However, a £3.7m jump in the cost of sales to £42.2m saw operating profits drop 39 per cent to £333,277. The firm, which paid out £1m to shareholders in 2010, did not pay a dividend for 2011.

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Managing director Christopher Campbell said the family-owned business, founded 50 years ago by his father Edward, was pleased with profitability levels given the current difficult trading environment, but he said inflation in red meat prices was the highest in 20 years.

He said the company, which also delivers to consumers across the UK, was “very well placed” to cope with the difficult economic environment thanks to its wide product range and the efficiency of its factory. The group moved to the £6m facility at Heatherfield near Linlithgow after its previous site in Broxburn was destroyed by a fire in 2009.

Campbell added: “Our range of customers is diversified – the largest represents no more than 5 per cent of turnover.”

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