Profits at ingredients maker Macphie of Glenbervie have nearly doubled and are now “back on the right track” following a drop in the price of raw materials, including dairy products.
Figures released by the food manufacturer showed that pre-tax profits rose to £3.7million in the year to 31 March, up from £1.9million during the previous 12 months.
The firm’s profits are now rising in line from the £2.1million surplus made in 2013 before last year’s rise in commodity prices.
Sales edged up to £44.6million from £44.3million, while gross profit climbed to £11.5million from £9million.
Managing director Andy Underwood said: “With the business now back on the right track, increased growth opportunities are now presenting themselves and – with a strong innovation agenda – we can continue to support significant investment in operational capabilities and product development.”
Chairman Alastair Macphie, who was appointed as a deputy lieutenant for Kincardineshire in January, added: “It’s a very positive set of results, which is particularly pleasing given the challenges the business faced [during] the previous 12 months, especially due to the increase in raw material costs.
“These results are testament to all the hard work and dedication of Macphie employees.”
The company – which employs more than 270 staff at its sites at Glenbervie near Stonehaven and Tannochside near Glasgow – hailed an increase in consumer spending for boosting its food service business.
The firm added: “The bakery business has seen a small sales decline as we exited some business in the last quarter, this business has subsequently been replaced and we expect to see a return to growth in the year ahead.
“International sales also showed a small decline due to depressed markets in central and southern Europe; however, the outlook for international in the year ahead looks positive with new business gains in the Middle East.”
While the UK’s economic climate has stabilised, the firm noted that some international markets continued to be a challenge.
The company was founded as a wholesale business by Alister Macphie, the current chairman’s great uncle, in Glasgow, in 1928.
The firm moved into manufacturing in 1954 and its head office was relocated to Glenbervie, where the Macphie family had been farming for more than 700 years, in 1973.
Macphie launched its first consumer brand, Devilishly Delicious, in 2010 and received an award in 2013 from Interface – the public body that helps companies to access academic expertise – for carrying out 15 research and development projects carried out in partnership with universities.
In 2013, the firm worked with Heriot-Watt University in Edinburgh to pioneer the use of ultrasound in baking thanks to a £500,000 grant from the-then Technology Strategy Board, which is now Innovate UK.
The technique – for which the company and the university filed a patent – improved the density, volume and texture of products during the baking process.