Aberdeen-based glazier AC Yule struggled to turn increased business into profits last year as rising raw material costs ate into its margin.

Aberdeen-based glazier AC Yule struggled to turn increased business into profits last year as rising raw material costs ate into its margin.

The company, which supplies glass, aluminium and PVCu products to the construction industry in Scotland and the north of England, reported a net profit before tax of £983,547, up 7.9% on the year, before despite seeing turnover surge 18% to £37.4m.

In 2006, profits were as high as £1.4m.

Managing director Bryan Yule said he was satisfied with the performance during the year to January 31, 2008, but highlighted the impact the rising costs is having on the company.

He said: "Overall, throughout 2007, turn-over was up due to strong demand for glass and aluminium at our various sites, although turnover decreased slightly within PVCu in line with our forecasts, however margins continued to be adversely affected by significant price rises in raw materials and energy costs."

He added: "The current credit crunch is undoubt-edly having an impact on the commercial, new-build and home improvement sectors, but despite the challenges facing all companies, at present, we are currently sitting with a strong commercial order book for the remaining part of 2008 and into the early part of 2009 although we are continuing to see material and energy costs rising."

He said that AC Yule continues to invest in its machinery, highlighting the installation of a glass paint line at Livingston.

Established in 1946, AC Yule employs more than 430 staff in Aberdeen, Elgin, Livingston, Forfar, Glasgow and Boldon in the north of England.