FARMFOODS, the frozen food retailer, has hiked profits by more than 37 per cent to more than £20 million - in spite of conditions remaining tough on the high street.

Cumbernauld-based Farmfoods, which has more than 300 stores across the UK, booked pre-tax profits of £20.8m in the year ended December 31, accounts newly-available at Companies House show. This came a year after profits had fallen by nearly £12m to £15.1m.

The turnaround came during a year in which the retailer, whose roots stretch back to Aberdeen in 1955, lifted turnover to £851.6m from £721.4m.

The accounts show Farmfoods, majority owned by managing director Eric Herd, increased its investment in freehold property, up to £18.8m from £8.7m the year prior.

That came as the average number of staff employed by the company leapt to 4,779 from 3,891, pushing staff costs up to £70.8m from £57.3m.

According to the accounts, directors' emoluments narrowed to £1.39m from £1.44m, with the pay for the highest paid director unchanged at £425,000.

The directors note in the accounts that the company invested £2.55m to purchase 30,000 ordinary shares in the business, representing 2.8 per cent of the issued share capital. These shares were subsequently cancelled, the company said.

The directors did not recommend a final dividend for the year, as was the case in 2013. It paid an interim dividend of £4 per ordinary share, amounting to a £300,000 return to shareholders. That meant the total dividend for the year was £4 per ordinary share, compared with £9 last year.