GOLDEN Casket's owner has emphasised its appetite for acquisitions following strong growth in sales at the sweet maker in recent months.

Douglas Rae said the Greenock-based firm is on the look out to buy other confectionery businesses after it enjoyed a strong first half helped by a clutch of big contract wins.

"We're very busy at the moment and we are running about 8% ahead of last year," said Mr Rae, who noted Golden Casket has been ramping up capacity to cope with demand.

"We've just completed quite a sizeable extension," he said.

Golden Casket said last month that it had invested around £600,000 in a new production facility after winning a landmark order to make own label sweets for Asda.

The business won from Asda and two other customers Mr Rae declined to name has provided a big boost to trading at Golden Casket, which has been grappling with tough trading conditions for years.

The Golden Casket (Greenock) group's latest accounts show turnover at the confectionery arms fell to £17.5m last year, from £18.4m in 2011.

The group also owns Greenock Morton football club.

Mr Rae has highlighted the difficulties involved in dealing with the giant supermarkets, which have been winning share from hard-pressed independents.

Yesterday, he said: "It's very competitive and dealing with them is very challenging."

But, he added: "We as a business are delighted with the level of business we do with all the grocery multiples."

While the independent sector is shrinking, Golden Casket still supplies 4000 of such retailers across the UK.

Describing Golden Casket's business levels as "very comfortable", Mr Rae said the firm is in good shape for the future. "We don't run with loans or overdrafts or anything of that nature," he observed.

Mr Rae said the company could draw on its strength to buy firms that could allow it to widen its product range at the right price.

Founded by Mr Rae in 1959, the company acquired companies like Drysdale & Gibb, maker of black striped balls and mint humbugs, to help build its range and customer base.

Mr Rae wanted to buy the Miller McCowan business that was sold by administrator Grant Thornton to English group Tangarine in 2011.

Tangarine sold off the production lines at Stenhousemuir and Broxburn and switched production to Blackpool and York.

Mr Rae said he has looked at two potential targets in the year to date but did not agree with the vendors' valuations of the businesses.

The veteran businessman also highlighted the key role he believes employees play in the company's success.

"We've got so many people that have been 20, 30 years with the company, that have made their whole life the company and I respect them greatly for what they do."

He added: "When you have people for a decent length of time you've got a tremendous trust in them, they know what they're doing. We turn out very high quality, with the results that it makes business so much easier."

The company employs around 140 people in Greenock.

Mr Rae has grandsons employed in the business but says all had to earn their places on merit. "I like them to earn their spurs. There's no silver spoons in there," he said.

The group made £624,000 pre-tax profit in 2012, compared with £908,000 in 2011. Group revenues fell to £18.3m from £19.2m in 2011.