Food ingredients manufacturer Macphie has announced a 3.3% increase in turnover to £55.7m in its financial report.
For the year to March 2018, the group said its gross profit has declined slightly to 25.4% (from 28.4% in 2017), with operating profit in the year falling to £3.1m from £5.9m the previous year.
Chief executive Andy Stapley, who joined the company in October, replacing former managing director Andy Underwood, 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… 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.
Chairman Alastair Macphie added: “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.”