Macphie in profits boost
MACPHIE OF Glenbervie has warned the economic outlook “remains unclear” following the UK’s vote to leave the European Union, as the north-east food company reported a profit rise of more than £1 million.
Stonehaven-based Macphie booked pre-tax profits of £4.6m in the year ended March 31, according to accounts filed at Companies House.
The family-owned firm, which supplies products for bakers, chefs and food manufacturers, had a £3.5m profit the year before.
Writing in the accounts, boss Alastair Macphie said sales growth had been achieved “in all our traditional channels” as turnover increased by 6.7 per cent to £47.6m. And he said the company had benefited from the
“relative stability” of raw material costs during the year, with the benefits of capital investment and efficiency initiatives also filtering through. However, he warned the Brexit vote has clouded the outlook.
“Following the outcome of the recent EU referendum, the economic climate remains unclear in the UK and currency fluctuations could present a challenge and opportunity internationally,” Mr Macphie said.
“The board will maintain a close watch on developments and take the appropriate actions to minimise any adverse impact on the business.
“We continue to closely monitor all the commodities that affect the business and continue to work with our suppliers to ensure appropriate cover and pricing, in order to stabilise both inbound and outbound pricing.”
Macphie said the UK food service sector continued to be its lead sales channel during the year, with growth driven by the ongoing expansion of the casual dining and pub food market.
Beyond the UK, it pointed to strong growth in the Middle East, which Mr Macphie said “more than compensated for continuing suppressed spend in Southern Europe.”
According to the accounts, the company derived £41.4m of its turnover in the UK last year, up from £38.7m in 2015, with export turnover climbing to £6.2m from £5.9m.
Macphie employed 300 staff last year, compared with 271 the year before, while payroll costs jumped to £10.7m from £9.7m.