PATERSON Arran enjoyed a near-quadrupling of profits last year, as turnover surged on the back of strong demand for its branded shortbread and Cafe Bronte cookies.
The food firm has increased its share of the shortbread market in Great Britain still further in the 52 weeks to June 9, building on the growth enjoyed by its Paterson's brand in recent years.
Paterson Arran employs about 130 people at its headquarters site at Livingston in West Lothian, and also makes oatcakes. It has a workforce of about 20 at Lamlash on the Isle of Arran, where it makes jams, chutney, and mustard.
Accounts which have just become available from Companies House reveal that Paterson Arran achieved a hike in annual pre-tax profits to £1.36 million in 2012, from £366,409 in 2011, on the back of a surge in turnover from £17.5m to £20.7m.
Allan Miller, sales and marketing director of Paterson Arran, attributed these results to a strong performance by the company's branded shortbread in the UK retail market and by its Cafe Bronte range.
He highlighted sales of Cafe Bronte cookies to the Ministry of Defence for soldiers serving in Afghanistan and in other countries.
Mr Miller also highlighted the availability of Paterson Arran's Cafe Bronte range, which includes luxury shortbread as well as cookies, on Air Canada, Delta, and British Airways flights, and on P&O cruise boats.
The Bronte range is also sold into the food service or catering sector.
Asked what had driven the rise in profits and turnover last year, Mr Miller replied: "Shortbread in UK retail is one big driver. The other big driver is our branded business in food service and travel."
Mr Miller noted that Cafe Bronte could be found "everywhere from UK coffee shops to ration packs to service on a plane".
He added: "Cafe Bronte gets to a lot of places where you wouldn't necessarily be buying it, but you would be offered it by someone who wants to feed you or impress you, that sort of thing."
Mr Miller highlighted Paterson Arran's sponsorship of ITV's Loose Women show as one of the steps taken by the company to ensure the momentum enjoyed in 2012 was maintained into this year.
Mr Miller said Paterson Arran's share of the branded shortbread market in Great Britain had risen to 42.2% in the 52 weeks to June 9, based on research conducted by consumer sector specialist Kantar Worldpanel.
Paterson Arran consolidated its market-leading position in the branded shortbread market in 2012, with a jump in its market share to 41.4% in the year to December 23 by consumer spend, from 31.4% in the previous 52 weeks. This "branded" category excludes the own-label shortbread of supermarket groups and retailer Marks & Spencer.
In 2007, Paterson Arran's share of the branded shortbread market was little more than 10%.
Mr Miller said Paterson Arran's share of the overall shortbread category in Great Britain had climbed to 13.2% by consumer spend in the 52 weeks to June 9. This is up from a share of 12.8% in the 52 weeks to December 23.
Mr Miller said Paterson Arran remained in second spot in the overall shortbread market in Great Britain, behind Marks & Spencer. Paterson Arran overtook supermarket giant Tesco's own-label shortbread in 2012 to move into second place behind M&S, which had a share of 22.7% last year.
In their report on the accounts, the directors of Paterson Arran say: "The company has no debt, unlike many of its competitors, and has a strong balance sheet to support its future investment in developing new business."
Paterson Arran, majority-owned and managed by Alan Hardie and Ian Appleton, was the subject of a buyout from Scotch whisky distiller Edrington in 1995. Edrington retained a small stake.
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