West of Scotland drinks tycoon Sandy Bulloch saw profits drop by almost 30% and returns by 50% last year in his principal company.

A Bulloch (Agencies) has reported pre-tax profits of £3.6million, down from £5m, and a 7.9% return on capital, down from 15.3%, in accounts just filed at Companies House.

Turnover fell by 6.3% to £84.3m, and the directors report a consistent gross margin of 18.3%.

They say: "The Scottish market is highly competitive and margins continue to be tight, with pressures from supermarkets, other wholesale and national chains being the major factors. The group is well placed to meet the challenges and remains committed to developing the group's product range and market penetration."

Of its two principal subsidiaries, Scotland's biggest independent wine and spirit merchant William Morton recorded a fall in profits from £103,293 to £57,020, in the year it acquired Inverarity Wine Vaults, while Glen Catrine bonded warehouse in Ayrshire saw profits fall 25% to £2.37m.

Shareholder funds rose by £2m to £23.5m during the year, while the group's main source of debt is a bank overdraft which ended the year at £4.92m, up from £4.37m.

The Bulloch drinks empire, which dates back to 1842, includes the Glen Scotia distillery at Campbeltown and Loch Lomond Distillery Company.

Cross-guarantees to the bank for total company liabilities, covering Gibson Scotch Whisky Distillers in Ayrshire and the Loch Lomond business, rose by £4m to £24.4m.

A Bulloch (Agencies) is 99.9% owned by an employee benefits trust.