Ingredients supplier Macphie has reported a slight increase in sales and gross profit after winning new business.
Turnover is up from £55.7m last year to £56m in the year to March 2019, with gross profit up from 25.4% to 26.6%. Underlying operating profit in the year was £1.2m, down from £3.1m in the previous trading year.
“This is an encouraging performance in a highly competitive industry that operates on very tight margins,” said Macphie CEO Andy Stapley.
He added the “long shadow of Brexit” had created uncertainty in global markets, but said Macphie’s outlook remained positive as it worked to secure its supply chain.
“Looking at what we can control as we move forward, we are improving our operational efficiency and focusing on our core product range. Several new business wins with international brands have led us to significantly expand facilities at our north Lanarkshire site and we continue to pursue new opportunities both here in the UK and overseas.”
Macphie this year signed a five-year lease on a property next to its site at Tannochside Business Park in Uddingston, and carried out a £140,000 refit. The move followed a £750,000 spend on new equipment at Tannochside over the past three years, with an additional £5m invested in technology across the business.
Chairman Alastair Macphie said: “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.
“Our established customer relationships and detailed insight into consumer trends mean we are well placed to maximise developing market opportunities.
“Given the challenging market environment, these results reflect a balanced and resilient business.”