SCOTT & Fyfe, the industrial textile maker, has returned to profit in its latest financial year - despite difficulties in the eurozone, unrest in Ukraine and the falling oil price curbing demand for its pipe fabric technology.

The employee-owned company, chaired by Nick Kuenssberg, booked pre-tax profits of £140,000 for the year ending December 31 - 12 months after reporting a £678,000 loss. And it has signalled its optimism over current trading by revealing plans to recruit up to 12 staff at the start of the calendar year. The company employed an average of 78 staff last year, down from 87 in 2013.

Mr Kuenssberg said: "The fact we are back in the black and recruiting is obviously a positive message. We are recruiting in the production area, [and] we will be up something like a dozen on the beginning of the year.

"It's a reflection of growth... in irrigation in particular, and also in composites, which includes automotives."

Profits at Scott & Fyfe were boosted by several non-recurring credits, including the sale of a 25 per cent stake in Extenday, accounts newly available at Companies House reveal.

Exceptional gains were also made on the disposal of redundant machinery and the closure of a loss-making Chinese subsidiary.

Mr Kuenssberg said the company had lifted turnover by 9.1 per cent to £10.1 million on the year before, despite challenges in the Baltic countries, where the weakness of the eurozone and the strength of sterling caused difficulties.

Mr Kuenssberg said yesterday: "It's a general eurozone thing - Europe has been dire. The Baltics, where we are quite active, have been very, very difficult. When you have got currencies depreciating by 30 to 40 per cent, life isn't easy.

Asked if the conditions would lead the company to refocus its export strategy, he added: "We persevere. We've got the products, we've got the contacts with the customers, and the customers want to keep that going. But we tend to be invoicing in sterling and in euros, and when the exchange rates go to hell and that has a huge impact on demand locally."

And Mr Kuenssberg said there was no immediate prospect of conditions easing in Europe. "I wouldn't be hugely optimistic at all," he said. "The Greek situation is boiling up again, and we have obviously got Mr Putin stretching his muscles.

"That could have a serious political impact as well as the economics of it."

The firm moved into employee ownership in late 2012 after more than a century and four generations as a family-owned business. Mr Kuenssberg said the transition has been "hugely positive", noting that announcements will shortly be made on the number of staff who intend to start saving accounts towards acquiring shares in the company this year.

Staff can save a maximum of £1800 from their salaries a year under the scheme, which net of NI and PAYE means it costs the individual between £1400 and £1500. Mr Kuenssberg said that based on the 2014 results "there will be a profit participation (£20,000) for all employees, half payable in new shares."

The accounts show the Employee Benefit Trust purchased the entirety of the Tough family in equity in December 2012.

Richard and David Tough subsequently subscribed to £3.9 million of redeemable preference share capital in January 2013, further to which £300,000 was paid down in 2014. A further £300,000 was then paid down in January this year.Mr Kuenssberg said the company's performance will determine when the capital is fully returned to the Toughs.

He said: "The fact we redeemed some last year and more this year already shows we are optimistic about our cash generation. But the agreement we have with the two members of the family is very open-ended.

"What one has to stress is the Tough family have been excellent through this. They understand absolutely that it is their redeemable preference capital that is funding the company, and have every intention of making sure the redemption of that money will not prejudice the company in any way. There isn't a nasty tension between the family and the company at all."