Higher repairs and insurance costs slowed the progress of Fife coach operator Moffat & Williamson last year.
Managing director George Devine insisted that it had been a successful year with turnover up and good prospects for the future.
The Gauldry and Glenrothes-based firm reported a pre-tax profit down 21.5% at £102,000 in the year to November 2015.
Turnover was up 10.6% at £4.26 million, a rise that Mr Devine described as “significant.”
In the firm’s strategic report lodged with its accounts at Companies’ House, he explained: “There is an increase in the private hire revenue which continues to grow year on year.
“As a result of the successful award of Fife Council school contracts in the 2014/15 tendering exercise, the company has increased this revenue stream.”
He continued: “Despite a very substantial increase in revenue, the company returned a lower profit due to unforeseen events which saw repairs and insurance costs increase.
“Wages and salaries were also higher as additional drivers were employed to allow additional private hire income and to also help in bids for future council service contracts which the company has subsequently won.”
The firm had a workforce of 98 during the year, up from 85 the previous year.
Mr Devine stated: “The company has continued to invest and grow, so taking all things into consideration the company had another very successful year in 2015.”
In its effort to continue to seek opportunities to increase turnover and profitability, he said Moffat & Williamson was continuing to improve and develop relationships with key customers and in particular Fife Council.
“As a result the directors are confident that the company can continue to expand its trading base throughout the foreseeable future.”
In the 2015/16 year the company purchased seven new environmentally friendly vehicles and has improved its workshop and fleet.
The new year had also seen the company, with a fleet of more than 30 coaches, bid successfully to win some service contracts in Dundee for the first time.
Moffat & Williamson came into being in 1978 when the separate firms of James Moffat & Sons of Cardenden and Williamsons of Gauldry, both formed in 1945, were amalgamated.
The company, run by George and Lesley Ann Devine, is a wholly-owned subsidiary of Williamson Transport which is in turn a wholly owned subsidiary of Devine-Devine Transport.