‘Challenging market’ sees jam maker’s profits fall

FOOD: UK still delivers largest share of turnover for Arbroath-based firm

An Angus-based jam and preserve manufacturer has seen a drop in pre-tax profits of more than 86% in what has been described as a “very challenging market”.

Turnover at Mackays, which has a production facility on Arbroath’s Kirkton Industrial Estate, also fell by 0.26% to £18.8 million for the year ending December 31 2018.

Pre-tax profits fell from £393,207 in 2017 to £52,163 last year.

Director Martin Grant said: “At the heart of our business and indeed, profitability, lie our brands.

“Mackays continues to develop in home and international markets and the board places great emphasis on this.

“Mrs Bridges has completed the rebranding started in 2016 and the board reports it continues to hold its market leading position.”

The firm has also invested £1.2m across the business, including plant and machinery, office equipment, premises refurbishment and vehicle replacement.

Staffing levels at the firm have remained steady at an average of 175, with 136 employees in production and 39 in administration.

The cost of salaries, pension and social security rose from £4.4m in 2017 to £4.5m last year.

The domestic market continues to generate the major share of the company’s turnover and accounted for £13.8m last year, while exports to the rest of the world saw turnover of £5.52m last year – a slight drop from £5.58m in 2017.

Founded in 1938, Mackays has been in the Grant family since 1985 and boasts 25 products in its range.

Originally best known for marmalade, the firm also produces preserves, curds and chutneys, supplying a number of UK supermarkets, including Tesco, Morrisons and Waitrose.

The Mrs Bridges range of products is exported to more than 40 countries and includes old fashioned sweets, mustards and dressings.

Martin Grant, director of Mackays, with a selection of items from the company’s range.