GREENOCK confectionery manufacturer Golden Casket, the company behind Millions and Halfpounders, defied tough market conditions in raising its profits last year and is expanding its factory space in the hope of new orders from major retailers.
Accounts filed with Companies House show that Golden Casket (Greenock), which is run by Douglas Rae, 79, and is 83%-owned by him, enjoyed a rise in pre-tax profits to £1.27 million in 2010 from £1.15m in 2009.
This increase was achieved in spite of a dip in turnover from £21.5m to £20.6m.
And Mr Rae, who founded Golden Casket more than 50 years ago, says in his statement on the accounts that the company is “confident of at least matching the 2010 results in 2011”.
He also reports Golden Casket has acquired a further 25,000 sq ft of factory space next to its current premises in anticipation of further growth over the next few years.
Mr Rae hopes this will mean extra employment.
The company is spending about £100,000 on upgrading the premises acquired to bring them up to an acceptable standard – an investment which includes re-roofing.
Mr Rae highlighted the fact that Golden Casket had gained key British Retail Consortium accreditation last week, and believed this could open the door to new orders from major retailers which have already approached the company.
Referring to the acquisition of the new factory space, Mr Rae said: “What we are doing is we are preparing for an expansion of business – really based on the BRC (accreditation). We have got two or three companies who are very keen to deal with us, but they said they only dealt with companies that had BRC (accreditation).”
Noting that the process of obtaining accreditation had taken about 15 months, he added: “We thought, ‘we have to get this’, even though it was a tremendous mountain to climb. We got it. We got top marks. We got a high ‘A’ pass. We did well in it.
“I am hopeful there are two or three companies who want to deal with us. They are substantial companies. We need to have space up our sleeve because, assuming they come in with us, we will have to extend our production to meet their requirements and therefore we need extra space to do that. They are very big retailers.”
Mr Rae said the company was about halfway through the development of the factory space.
He added: “By mid-year, we will definitely have the additional production under way.”
Expressing hopes that new orders will increase employment at Golden Casket, Mr Rae said: “Obviously, if we increase the production, that would be increased staff.”
Highlighting the fact that many staff had been with the firm for decades, he added: “We have got a very settled staff. We don’t have redundancies. We are a very organised company, I am happy to say. I would hope that we won’t ever need to have any redundancies. I like to think of us looking forward and taking on additional staff.”
Mr Rae expressed his intention to carry on running the business.
He told The Herald: “I never discuss age. It is only a figure on a birth certificate.”
And he added: “As far as I am concerned, the bottom line is my report card. If I cease to make a decent return for the company, then that would be the time I have got to reconsider my position, but at the moment I have still got the enthusiasm and the drive to take things forward.
“As long as I continue with that, I am blessed with good health, I will certainly be pushing on.”
Mr Rae also chairs Greenock Morton Football Club. Golden Casket (Greenock) owns 88.6% of Morton, which is sponsored by Millions.
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