DON & Low, the Scottish speciality textiles producer, has posted a 24 per cent fall in annual profits - but directors said the group has performed well amid challenging conditions.

Forfar-based Don & Low made £5.9m pre-tax profit in 2013, down £1.8m from the £7.7m recorded in the previous year.

The Greek-owned company saw sales in the under pressure European Community area fall to £13.4m last year from £15.6m in 2012.

However, the company grew UK sales £2.5m to £36.5m from £34m.

Total turnover increased three per cent, £1.8m, to £60.1m from £58.3m.

In the company's accounts for the year directors wrote they expect to face continued economic and market issues during 2014.

They added: "The plans, policies and procedures that are in place, however, mean that the directors are confident that the group's budgeted performance will be achieved."

The company employed an average of 445 people in 2013 and the preceding year.