The Courier & Advertiser (Fife Edition)
Forfar ready meals firm sees profits jump 20%
STRATHMORE FOODS: Firm invested almost £1m on new production equipment
Forfar chilled and frozen food group Strathmore Foods continued its growth last year, recording a 20% jump in profits and £1 million additional sales.
The firm is one of the UK’s leading ready meal manufacturers under three main brands – McIntosh of Strathmore, Scottish Favourites and Strathmore Foodservice.
Turnover rose from £12.5m to £13.5m for the year ending June 30, with pre-tax profits increasing to £2.4m.
During the year the firm invested more than £940,000 on equipment to improve production capacity and efficiency.
In his strategic report, company secretary Dain Egan noted that average weekly sales were 10.4% higher than in 2016 but increased commodity costs along with “retail pricing strategies” by major customers meant the weekly profit increased by a more modest 5.4%.
He said: “Despite these adverse pressures, as a result of the active management of other costs, the average weekly operating profit increased by 17.8%.”
The family business, which employs 122 staff, is led by managing director Julie Nisbet.
Mr Egan said the firm had continued to invest and trade well this year.
He said: “We have a policy of investing heavily in the production and capacity of the business to make sure we are producing as efficiently as possible. Trading this year is in line with expectations.
“We are also bringing out new products which we hope will boost our sales and our continued growth.”