Kinross cashmere firm records highest-ever sales despite cost-of-living crisis

Selling a luxury product like cashmere in a time of economic turmoil may not be easy - but this major local employer has risen to the challenge.

By Rob McLaren

September 4 2023, 5:55am

A technician oversees the yarn spinning process at Todd & Duncans Lochleven Mills at Kinross.

A cost-of-living crisis and economic uncertainty around the globe would appear to be a difficult time to sell a luxury product like cashmere.

But Todd and Duncan of Kinross has managed to achieve its highest ever year of sales.

Not only is it exporting its high quality yarns to fashion houses all over the world, but it is increasing its headcount and investing in equipment.

The business has been producing yarns since 1867 and is the town’s largest private sector employer.

Kinross cashmere sales

Bruce Cameron has recently been promoted from sales director to managing director, taking over from Iain Cormack.

He said the financial results – with turnover rising from £23.9 million in 2021 to £30.9m last year – shows the firm’s “resilience and adaptability”.

“The company experienced strong growth in sales volumes, highlighting its commitment to delivering high quality yarns and meeting customer demands,” he said.

Cashmere wool being spun onto reels and being put through the manufacturing process. Image: Steve Brown/DC Thomson

“In response to this higher demand we have invested in additional equipment and increased our employee numbers.”

The firm is currently advertising for a variety of jobs.

A breakdown of the sales shows particular growth in the European market – rising from £8.8m in 2021 to £15.1m last year. The vast majority of European sales go to Italy.

Investing for growth

Employee numbers rose from 193 in 2021 to 212 last year.

Mr Cameron said: “As part of our commitment to our employees, we implemented a one-off additional increase in salaries.”

Higher wages and energy costs saw the firm, based at Lochleven Mills, record a small pre-tax loss of £49,000.

The energy prices has prompted the business to optimise production costs and improve energy efficiencies.

But the new boss is bullish about the company’s prospects, especially if the global economy starts to improve.

He adds: “As we navigate through this challenging economic climate, we remain focused on further growth, production efficiencies and delivering the highest quality to our clients.”

The Kinross cashmere business announced the closure of its on-site shop last month.