Jam and preserve firm Mackays has toasted new markets and fresh product ranges as it revealed a turnaround in performance and 15% hike in revenues.
The business, which employs around 140 people at its manufacturing base on Arbroath’s Kirkton Industrial Estate, unveiled the encouraging figures in accounts for the year to the end of December newly filed at Companies House.
In their statement, directors said they would continue their drive to “maintain this performance in both turnover and profitability”.
Turnover at Mackays rose to £16.8m during the period, while pre-tax profits of £735,577 marked a £1.4m turnaround on a £698,490 reverse now booked for the previous financial year.
The company, one of a string of firms to make the shortlist for The Courier Business Awards 2014, had previously posted pre-tax profits of £407,600 for 2012 but restated those figures in view of an adjustment in the way it calculates the value of work in progress and finished goods.
The amendment, which was supported by independent consultants, was said to have followed “a detailed review of the method of calculation of direct costs and attributable overheads to be added to raw material purchase prices”.
Mackays which is chaired by majority shareholder and food industry veteran Paul Grant, and has his son Martin at the wheel as chief executive said the results continued a pattern in growth, turnover and profitability over recent years.
“This is the result of the introduction and development of new products and expansion into markets coupled with efforts to ensure growth also continues in existing areas, both geographic and product-related,” directors said.
They expect “further advances” in Mackays’ market position both at home and abroad, following continued success from a drive toward exporting its wares and a promise of more investment.
At present 66% of the company’s turnover is generated in the UK, with the other third coming through exporting to around 50 countries including far-flung territories like Saudi Arabia, Peru and Kazakhstan.
The chairman said Mackays had grown into a mature, exporting grocery business with a significant reduction in the seasonality of its sales pattern and stock-holding requirements, necessitating the accounting adjustment.
“We’re encouraged by the ongoing growth, and we’re encouraged by the strength of the brand in many markets around the world,” Mr Grant Sr added.
Mackays which sources all its strawberries, raspberries and blackcurrants from soft-fruit farmers in the east of Scotland has seen a meteoric rise in fortunes since moving to its purpose-built factory in 2008, with yearly revenue growth of more than 10% supported by increased manufacturing capacity and flexibility.
The company was founded in Carnoustie in 1938 by the Mackay brothers, before being sold to United Biscuits in 1970.
The food group’s primary concern had been to secure the supply of jam for use in its ring biscuits.
But United Biscuits executive Paul Grant snapped up the firm in 1995 and has since revitalised its fortunes, turning it into an award-winning firm.