Perthshire-based Simon Howie Butchers increased sales last year at lower product prices than in the past five years.
The firm, based at Findony Farm in Dunning, reported a 4% rise in turnover for the year to December 2015 at £14.7 million and a pre tax profit up 5% at £2.5m.
The company sells meat products throughout the UK to the big six supermarkets and many of Scotland’s top hotels and restaurants.
The master butcher said 2015 had been an exciting year for the business.
“Sales growth was achieved yet we sold product at lower prices than in the past five years,” he explained.
“A reduction in raw material costs allowed us to pass on some significant price reductions to our customers and, similarly, any increases in overheads were absorbed without having difficult price negotiations.
“The results for the year and financial position at the end of the year were considered to be excellent by the directors who expect to maintain the company’s position for the foreseeable future.”
With a workforce of 114, Mr Howie said the company takes much satisfaction in employing people with skills to allow the firm to sell meat to a local pub, a Michelin star restaurant and city hotel groups with banqueting facilities for 500 people.
Having its own chain of retail shops helps its supermarket customers make product choices with the confidence that they have had a trial period and feedback from Howie’s discerning customers in Perth and Auchterarder.
Competitors continued to present challenges, and the company realised the need for constant improvements in product development, packaging, presentation and value for money.
Mr Howie said the figures showed that the company is increasingly profitable and retaining profits to invest in operational improvements to maintain margins.
The financial position of the company was healthy, the balance sheet has strengthened and short-term prospects remained positive.
The 2015 performance followed that of 2014 which was boosted by a six-figure sales contract for the Ryder Cup at Gleneagles.
The company founder prides himself on having lived in Dunning all his life “from a wee boy on the farm to now running my own business, which is still based in the village”.
He added: “The move from farming to butchery felt natural, it was my dad’s idea and I’m still grateful to him for it.”
