Macphie has announced its financial results for the year to March 2018, reporting a 3.3% increase in turnover to £55.7million (from £53.9million in 2017).
The company’s gross profit has declined slightly to 25.4% (from 28.4% in 2017), with operating profit in the year falling to £3.1million from £5.9million the previous year.
Newly appointed CEO Andy Stapley said: “In 2017, Macphie returned a record profit in what were very favourable market conditions. Against a more challenging backdrop this year, this is a positive set of results.
“The sector operates with tight margins, as we continue to produce premium products in a highly competitive industry which has seen some well-publicised challenges in the UK casual dining sector.
“Inflationary pressure in the period combined with volatility in the raw material market – especially dairy products – did present some headwinds.
“Our investment of over £5million in technology in the last two years means we are able to drive stronger operational performance and productivity.
“Our established customer relationships and detailed insight into consumer trends also mean we are well placed to maximise developing market opportunities.
“And while the shadow of Brexit creates uncertainty across every industry, with a weakened sterling and the threat of tariffs, our outlook remains positive as we work to secure our supply chain.
“Looking ahead, we are a strong and profitable business that will continue to invest and grow, pursuing new opportunities both here in the UK and overseas.”
Chairman Alastair Macphie said: “Our focus at Macphie has always been on achieving stable and profitable growth that provides jobs and creates wealth in the local area, rather than maximising short term returns for shareholders.
“Given the challenging market environment, these results reflect a balanced and resilient business.
“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.”