FINSBURY Foods, the cake maker which is a big employer in Scotland, said it is investing in high-tech production facilities at its Hamilton plant after ­growing profits 18 per cent amid challenging conditions.

The Aim-listed company made £6.5 million net of one-offs in the year to June 28, in line with market expectations. It made £5.5m the preceding year. Revenues fell to £175.7 in the latest year, from £176.6m last time.

Chief executive John Duffy noted the company, which supplies supermarkets, faced wide-ranging challenges during the year.

"Commodity price inflation began edging back upwards with escalating costs in chocolate, butter, energy and labour," he said. "Our historical customer base was adjusting to meet the threat of value-oriented discounters and we found ourselves squeezed on all sides."

The company is investing in technology to help boost efficiency in response. Significant projects include the installation of "leading-edge robotics" at the cake factory in Hamilton.

A spokeswoman for Finsbury said there had been no redundancies following the investment at Hamilton, and none were planned.

Finsbury's new chairman, Peter Baker, said the Hamilton plant is well run.

The company employs around 1,100 workers in total in Hamilton and a plant at Twechar, East Dunbartonshire. The company said growth will mainly come from acquisitions and mergers, which will broaden its product and customer bases.

Mr Duffy praised Martin Lightbody, who stepped down as chairman in July.

Mr Lightbody joined the board in 2007 after Finsbury's £37.5m purchase of his Hamilton-based cake-making business, Lightbody Group. He became chief executive in 2008 and then chairman a year later.

Mr Duffy said: "Martin proved a steady figurehead during the turnaround phase, carrying out his duties with dedication and resilience."

Last year Finsbury sold its gluten-free subsidiary in West Lothian, to Lucinda Bruce-Gardyne's Genius Foods in a £20m deal.