East Kilbride-based Merson Signs has seen profits more than halve in what it says was a year of consolidation after 75 per cent growth in sales in 2013.

Merson employs most of its 235 staff in Scotland and has a five-year plan to grow the business organically after an acquisition in 2012 and a major contract for Lloyds bank the following year.

Last year it saw turnover dip by 12 per cent from £26.6million to £23.4m, its operating profit was more than halved to £631,855 and its pre-tax profit slid from £1.12m to £532,632.

The business, founded in 1938, has been owned by its current management since 2005. It paid no dividend in 2013 but recorded a £720,000 payout last year.

Writing in the accounts just posted at Companies House, the directors say the year saw the integration of CGL Systems, which designs and manufactures cladding and rainwater management systems for the construction industry, and the rationalisation of its property portfolio. Profit margisn tumbled from 4.9per cent to 2.8per cent.

"The principal risks facing the business relate to demand in the market and we have witnessed clients delaying or reducing their anticipated spend as they react to changes in the economic environment."

The retail and banking sectors had seen most disruption while construction and infrastructure had remained strong.

"Despite the uncertainties our turnover projection for 2015 is strong and we have identified a number of new trading opportunities, some of which are now contracted."

Construction projects were under pressure, having been tendered by main contractors during the recession. "As the market is competitive, our remedy is to focus on internal efficiencies and staff motivation as tools to address margin pressure, the directors say."

The bill for director remuneration fell by £158,000 to £636,745, including a cut in the rewards of the highest-paid, possibly chief executive Roddy Angus, from £128,160 to £103,854. Total employment rose from 213 to 235, though costs were marginally lower at just under £8m.