GORDON & MacPhail, the Elgin-based whisky specialist, has hailed the impact of investment in its Benromach malt as it powered to a 23 per cent rise in profits in its latest financial year.

The latest accounts presided over by managing director Michael Urquhart, who is stepping down to be replaced by chief operating officer Ewen Mackintosh, show the firm made pre-tax profits of £3.2 million in the year to February.

Turnover at company, which bottles and markets whiskies under brands such as Connoisseurs Choice, Private Collection and Generations, soared by £3m to £24.7m.

This included a 27 per cent rise in the value of Benromach sales, 12 per cent in volume terms, to maintain growth at the distillery it revived 21 years ago.

Mr Urquhart, who will pass the baton to a non-family member for the first time in four generations, said: "We realised a long held ambition to own a distillery when we rescued Benromach in 1993.

"It has proven to be very sound business decision for us and we have slowly built the brand over time. Our investment has continued with the recruitment of additional staff, the launch of new packaging to wide acclaim and the completion of two warehouses.

"But the story does not end there and further investment in the brand is already planned for the coming year with the expansion of the visitor facilities and additional development of cask warehousing."

Gordon & MacPhail has a portfolio of more than 300 expressions of Scotch, which are exported to more than 50 markets.

It is also a significant wholesaler of wine and spirits, and retails whisky at its shop in Elgin where the business started in 1895.

Sales increased by £2m in the UK last year to £18m, and exports edged up to £6.7m on from £5.5m.

Key markets included France, Germany and Holland.