Toy firm H Grossman says it is pleased to have stayed the course in 2013, but is banking on its key role in the loom band craze propelling it to exceptional turnover this year.

The Rutherglen-based business said in accounts filed with Companies House that profit on ordinary activities before taxation for the whole of last year amounted to £97,287, from £127,434 in the prior year.

Managing director Martin Grossman said while 2013 was "not the easiest of years", the company is happy to have survived the period.

In the earnings report, he said the business, founded by his parents in 1946, has continued to concentrate on establishing a strong client base and consequently maintained market share.

Gross profit margin grew to 27.1 per cent, up from 26.7 per cent, while operating profit fell to £127,797, from £160,860.

Turnover fell slightly to £8.0 million, from £8.8 million in 2012. For 2013, £7.8 million of the total came from the UK and £196,382 from the rest of the world, while for the previous year £8.5 million came from the UK and £264,107 from the rest of the world.

Mr Grossman said loom bands have proved to be an "amazing" line and "took over the world" for the company in 2014, providing a real turning point for the business.

"It was one of those 'wonder spots'," he said.

He said the company's trade in the bands has increased its presence in Europe, and earlier this year it won a gold award in the Independent Toy Awards 2014 for the Loom Twister Creative Case.

Mr Grossman is known in his field as the "king of crazes," having had hits such as Alien Eggs in 1999, and the company says: "Excitement is the name of the game and we are the forerunners in crazes and hot lines."

However, the managing director modestly says spotting the next big thing is "pot luck", and explains that it is important to run with a "gut feeling" and then focus on winning lines.

As for what he expects to be big next in the toy world, he predicts that it will be Despicable Me merchandise. "We think that's going to be absolutely awesome," he said, noting the spin-off Minions film set to hit cinemas next year, and flagging key products such as scooters and pogo sticks.

He also looked at the potential to return the manufacturing of some toys to Scotland, saying: "It's still my intention to do something."

The business' cost of sales shrank in 2013 to £5.8 million from £6.4 million, and administrative expenses also fell, to £2.1 million from £2.3 million.

Its average number of staff in the period fell by one, year on year, to reach 33, with total staff costs, including directors, amounting to £836,295, from £839,695.

Looking ahead, Mr Grossman wrote: "The company is confident that with its well-motivated and experienced workforce that it is capable of meeting any challenges that may arise."