AP Jess, the Scottish meat wholesale and processing business, has said the group's profitability is increasing following the sale of its pig processing operation in Brechin.
The privately-owned company said it was in a stronger position after completing a reorganisation that involved selling its plant in the Angus town to a business formed by Scottish Pig Producers and Scotlean in October. The sale price was not disclosed.
The new owners are reported to be planning to increase production to process 8,000 pigs a week from 4,000. Thousands of pigs have been sent from Scotland for processing in England since the closure of the huge Vion plant at Broxburn in February 2013, with the loss of hundreds of jobs.
In the latest accounts for Greenock-based AP Jess Limited filed at Companies House, the group said the Brechin business had been groomed for sale during the year to 31 March.
In a strategic report dated 22 December, director David Jess wrote: "The preparation for sale required the restructuring of the balance sheet of AP Jess Brechin, involving the write down of a number of Assets which would not be included in the sale and not required in the future."
Mr Jess wrote that the £2.7m cost of the restructuring had a significant impact on the group's results for the year to March.
The group recorded a retained loss of £1.044m after tax, compared with a profit of £2.8m in the preceding year.
However, Mr Jess noted the group posted a £1.6m trading profit before tax in the year to March.
He added: "The reorganisation has repositioned the group in a favourable way to address the future... bank borrowings are down and profitability in 2015 is on the increase."
Mr Jess wrote that the McKechnie meat products and AP Jess (Paisley) meat wholesaling operations have returned to profitability.
The group has made significant investment in a new oyster farm. It expects this will contribute significantly to profits once the oysters are harvested.
Mr Jess wrote that the Charcuterie Continental cooked meats business continues to be a challenge.
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