SCOTCH whisky specialist Gordon & MacPhail has reported a dip in annual profits, but is continuing to enjoy strong growth in the volume of sales of its Benromach single malt.
The Urquhart family owned Gordon & MacPhail business, which files its accounts as Speymalt Whisky Distributors, saw its pre-tax profits dip to £2.6 million in the year to February, from £3m in the prior 12 months. However, the latest annual profit, revealed in figures published today, was comfortably ahead of the £2.36m figure for the year to February 2011.
The malt specialist, which is based at Elgin in Moray, bottles whisky from throughout Scotland under various brands including Connoisseurs Choice and Generations as well as operating Benromach Distillery on the outskirts of Forres. It is also a major independent wholesaler of wine, whisky, and other spirits in the UK.
Gordon & MacPhail experienced a 3.5% dip in sales to £21.6m during the year to February 2013.
It said that its sales in the UK had been in line with the previous year, in spite of a "challenging economic background".
Gordon & MacPhail added that its export sales had risen 10% by volume but fallen 10% by value, to £5.5m, in the year to February.
Managing director Michael Urquhart attributed this to a change of mix, with more younger whiskies sold.
In particular, he cited an increase in the volume of sales of the flagship 10-year-old Benromach.
The firm bought Benromach Distillery in 1993. It took five years to renovate the distillery, which had been closed for about 10 years, and in 1998 started producing a single malt. Gordon & MacPhail plans to double production at Benromach from early next year, to meet anticipated future demand.
The business, which employs 137 people and was founded in 1895 with the opening of a shop in Elgin, is meanwhile continuing with its traditional business of buying new spirit from a wide range of distilleries in Scotland, filling this into its own casks, and bottling the whisky when it thinks the time is right.
The Gordon & MacPhail portfolio of more than 300 expressions of Scotch whisky is sold through various channels in the UK, and exported to more than 50 international markets.
Mr Urquhart said he was "delighted" to see some growth coming through in the UK since June, after a "pretty static" period.
He said: "It is good to see that, and a brighter outlook on the UK economy, after years of doom and gloom."
Gordon & MacPhail, which also operates a whisky, wine, spirit and delicatessen outlet in Elgin, declared that increased volumes of sales of its own range of whiskies had been achieved in "numerous markets", including the US, Australia, Russia and China, in the year to February.
Mr Urquhart cited further strong performances in these markets in the current financial year, and also cited good growth in South Korea, Ukraine, and France.
Sales of Benromach rose 29% by volume, in the year to February. In the first eight months of the current financial period, the volume of Benromach sold was up 25% on the same period a year earlier.
Mr Urquhart said: "Benromach is a strategic focus for our business and the brand's strong on-going performance is an excellent result. We continue to invest in it, and have decided to double production. In addition, we are increasing staff numbers with the appointment of a third distiller to hand-craft our award-winning single malts and a brand manager to assist with brand-building and marketing activity."
He added: "We're pleased to have maintained strong sales overall. The business's long term performance has been strong, and the outlook is positive with more buoyant trading conditions in the UK and the continuing demand for our products (in) both traditional and developing overseas markets."
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