Scottish food group Macphie of Glenbervie has reported a 14% rise in profits despite seeing significant price deflation.
The company posted a pre-tax profit of £3.39m in the year to 31 March, up from £2.96m in the previous 12 months. Turnover climbed from £37.2m in 2005 to £38.7m.
Describing the figures as a performance to be proud of, chief executive, Alastair Macphie said: "We’re confident that if we continue to focus our skills on added value products and profitable volume, rather than being drawn into the downward spiral of accepting volume business at little or no margin, we can maintain this solid growth in the future."
He said bakery ingredients continued to be Macphie’s core business and this was showing solid growth in a relatively mature market. He added: "We continue to achieve step change growth in our foodservice and food manufacturing business and we’re making major progress in international activities, particularly in continental Europe and the Middle East."
Last year, the Macphie family and employees regained full control of the firm, with the £5.6m buy-out of 26% shareholder Palsgaard.