Independent coffee roaster Matthew Algie has recorded a 10 per cent rise in operating profit in its most recent financial year.
The Glasgow company, which supplies the likes of The Gleneagles Hotel, Sainsbury’s, Marks & Spencer, increased turnover by three per cent from £32.7 million to £33.7m in 2014.
Revenue was said to have risen partly due to Matthew Algie targeting the premium end of the market as well as increasing distribution further into the pubs and bar trade where it already supplies G1 Group and Fullers.
Matthew Algie also cited new customer support programmes, updated branding and seasonal drinks promotions as factors.
Operating profit increased from £3.39m to £3.74m while the pre-tax figure edged up from £3.33m to £3.38m.
Chairman Eric Hagman, said: “The coffee shop market continues to grow strongly both through new outlets opening and continuing consumer demand.
“However, location is no longer the number one footfall driver – it’s all about quality, presentation and experience. From a retailer perspective competition is becoming more intense – so differentiation is absolutely key.
“While competition is incredibly fierce and margins tight, our unrelenting drive to serve up the highest possible quality coffee has helped us to secure a strong pipeline of new business.
“Our distribution through non-specialist channels like pubs and bars is growing strongly and we are pleased that our dedication to ethical production has been recognised within the industry and by our customers.”
Matthew Algie, which can trace its roots back to 1864, employs 214. It sources Fairtrade, Rainforest Alliance and organic coffee beans from a range of growers around the world.
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