Scottish bakery group Aulds has seen its financial losses increase as “intense pressure on margins” continued to impact the business.

In Aulds Holdings’ latest accounts, filed at Companies House last week, the group posted a turnover of £14.98m for the full year to 31 March 2012 - down from £15.39m the previous year.

Gross profit dipped to £1.79m from £2.03m in 2011, while loss after tax stood at £883,311 compared to -£557,739 the year before.

The Greenock-based company said depressed conditions on the high street, and the eating-out sector, coupled with intense pressure on margins, had affected the company’s performance during the year.

The baker and manufacturer of chilled and frozen foods revealed that “very significant cost reductions” along with the “rationalisation of the company’s retail portfolio”, had helped stabilise the company, and added that investments in new markets were being made to ensure long-term margin improvement.

The group’s subsidiaries include: Thomas Aulds & Sons - retail bakery and coffee shop; Aulds Delicious Desserts - manufacturer of chilled and frozen foods; Aulds Bakeries; and Aulds Caterers.