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Macphie maintains positive growth

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Macphie has announced its financial results for the year to March 2017, reporting a 13.2% increase in turnover to £53.9million (from £47.6million in 2016).

The company’s gross profit declined marginally to 28.4% (from 28.9% in 2016), due to cost inflation in raw material pricing impacting the final quarter and some changes in the company’s product mix.

Operating profit in the year rose to £5.9million, from £4.6million the previous year, which continues the positive trend of the last two years, with increasing turnover, improved efficiency and tighter cost management.

Sustainable growth

Managing director Andy Underwood said: “It is a positive set of results, underlining the company’s commitment to delivering sustainable profitable growth.

“Sales growth was realised across most channels in the UK, with Out of Home continuing as our key growth area.

“The traditional bakery market has remained challenging, and ongoing consolidation in the wholesale supply chain is adding further pressure.

“Consequently, we have reviewed and realigned our customer approach to provide more consumer-focused understanding and commercial solutions, which we see as vital to our continued success.

“Internationally, the Middle East market offers further growth opportunities as leading food service operators in the region expand.

“Looking forward, food inflation is now a well-publicised reality and the recent volatility of the dairy market is providing both availability and pricing challenges.

“We closely monitor future market movements and enjoy long-term relationships with our key suppliers, operating a range of mechanics to ensure the best quality for value price.

“Given the international nature of our business, currency exchange rates can have both a positive and negative impact.

“However we feel that these risks are well managed and the business is in a very good position to mitigate any eventualities.”

Positive trend

Chairman Alastair Macphie said: “These results illustrate the continuing success of the business as we focus on maintaining the positive trend of the last two years.

“During the year, the associated farm business was demerged from the main food business, as it was recognised as a non-core activity for Macphie Ltd.

“With the current political landscape giving the UK an uncertain economic outlook, as a business we will continue to monitor developments and act to minimise any adverse impact.

“I would like to convey my thanks to all our employees on behalf of the board, for their dedication and hard work.”