AEROSOL manufacturer Sanmex International experienced a further fall in profits in its last financial year as turnover declined, newly-filed accounts have shown.

However, the third-generation family company, based at Rutherglen near Glasgow and owned by Steven Groden, has highlighted a "significant rise" in sales in the early part of its current financial year and flagged the beneficial impact of recent contract wins.

Sanmex International's latest accounts, which have just become available from Companies House, show that its pre-tax profits more than halved to £206,308 in the year to January 30, from £491,815 in the prior 12 months.

Turnover at the company, which produces and markets body sprays and anti-perspirant products for men and women, air fresheners and odour neutralisers, household cleaning products, furniture polishes, laundry-care ranges, and insecticides, fell to £14.82 million in the year to January 30, from £16.98 million in the previous year.

In their report on the accounts, the directors of Sanmex International attribute the decline in turnover to overstocking with a major export customer and reduced sales from a major retail customer.

The accounts show the firm's UK turnover fell to £11.8 million in the year to January 30, from £12.3 million in the prior 12 months. Sanmex International's overseas sales fell to £3.02 million from £4.67 million.

Sanmex International has now posted a fall in profits for two consecutive financial years.

Pre-tax profits in the year to January 30, 2013, had fallen to £491,815 from £615,084 in the prior 12 months.

However, these falls in profits followed rises in prior financial years. Sanmex International made pre-tax profits of £522,311 in the 12 months to January 2011. It posted pre-tax profits of £401,800 for the year to January 2010.

And, highlighting new business wins, the directors say in their report: "During the year, the business has won a number of significant new contracts which will be realised during the year to January 30, 2015. A number of these contracts have now commenced, leading to a significant rise in sales at the beginning of the new financial year. Further new business will commence prior to January 30, 2015 and into the following year."

The accounts show that Sanmex International employed an average of 71 people during the year to January 30. It employed an average of 69 staff in the prior 12 months.

Sanmex International notes on its website that its products can be found in large and small retailers, wholesalers, chemists, and market stalls all over the UK, and in more than 40 countries worldwide. Its brands include Charm, Actif, Soft Touch and Sanmex.

The company also specialises in manufacturing products sold under retailers' private labels.

Sanmex International's directors note that, although turnover decreased in the last financial year, gross profit margin improved. The accounts show that gross profit margin increased to 16.7 per cent in the year to January 30, from 15.8 per cent in the prior 12 months.

The directors highlight their focus on this measure. They add: "The company continues to strive to increase gross margin to the point it may have to renegotiate some current contracts."

Contemplating the outlook, and highlighting a £750,000 investment in its manufacturing operations in the year to January 30, the directors say: "We believe our continued investment in our product range, with particular emphasis on quality and employing people with relevant expertise, will enable us to improve our market position."

Mr Groden has noted that the investment was made to increase the efficiency of the process of mixing chemicals before they are put into cans, and reduce Sanmex International's carbon footprint.

Directors' remuneration at Sanmex International amounted to £361,477 in the year to January 30, 2014, up from £270,941 in the prior 12 months.

The highest-paid director received remuneration of £149,803 in the year to January 30. In the prior 12 months, the remuneration of the highest-paid director was £102,827.