Forfar-based textiles group Don & Low made a higher profit from a lower turnover last year.
Company secretary Colin Johnson said the directors consider the result for the year to represent a satisfactory performance in the ongoing difficult economic and trading conditions.
Costs of sales were lower in 2015 and the firm made a £5.3 million gain on its defined pension plan, a turnaround from the previous year when it made a £6.9m loss.
Don & Low, which manufactures and markets woven and non-woven polypropylene textiles have a history stretching back to 1792.
In 1999 the firm was acquired by Thrace Plastics, part of the Greek-based Thrace Group which has 20 companies worldwide.
With a base in Glamis Road, Forfar, Don & Low had a workforce of 458 during the year .
Don & Low’s main woven products include carpet backing, geotextiles and yarns, and the non-woven materials are construction fabrics.
In the 12 months to December 31 the firm had a turnover down 4.35% at £59.7m.
Sales costs were down by 9% at £46.1m resulting in a profit before tax up11% at £5.275m.
Mr Johnson said the firm implemented a clearly defined strategic plan and maintained a focus on safety, quality, customer service and continuous improvement.
Trading conditions during the year were challenging within the group’s specific markets and in relation to volatility of key external factors which were monitored closely.
The group responded with detailed strategic planning, budgeting, reviewing the cost structure and recovering unavoidable cost increases.
In the tougher trading environment the group’s operating profit as a percentage of revenue had risen from 8.3% to 9.8%.
Mr Johnson said the principal risks and uncertainties affecting the group were raw material costs, customers’ credit risk, competitive risk and foreign currency exchange with the group exposed to risk through Euros and US Dollars.
The group closely monitored exchange rates, and given the size of its operations the costs of managing exposure to foreign exchange risk exceeded any potential benefits.
He added: “The directors expect to be faced with continued economic and market challenges during 2016.
“The plans, policies and procedures that are in place, however, mean that the directors are confident that the group’s budgeted performance will be achieved.”
Don & Low prides itself in being at the forefront of product innovation, and developed and manufactured a self-reinforcing polypropylene fabric Armordon for luggage-maker Antler.
The self-reinforcing polypropylene fabric, when layered and thermoformed, combines durability and high flexibility to absorb impact without damage in a lightweight material.
