Strathmore Foods, the Forfar-based chilled and frozen food producer, saw pre-tax profits top £1m in the year to June 30 2014.
Continuing strong sales for its 'McIntosh of Dyce' range, which includes macaroni cheese, haggis neeps and tatties, and Scotch pies, helped push turnover ahead from £12m to £12.5m, while profits jumped 19 per cent to £1.02m from £843,044.
Writing in the annual report just filed at Companies House, the directors say they are pleased with the operating performance and the continued growth in the financial strength of the business.
They cite chilled food sales, particularly for the McIntosh brand which has been the beneficiary of significant marketing and advertising spend in recent years , but also improved performance in its Countryside frozen products sold to the foodservice sector.
Strathmore prides itself on sourcing its meat and vegetables as locally as possible.
The gross margin was maintained at 31.9 per cent, despite "volatility in the retail pricing strategies pursued by our major retail customers" and commodity price movements.
The group is committed to ongoing capital investment to increase production capacity and efficiencies, spending £625,000 during the year - but Strathmore remained debt-free.
Cashflow improved from £1.33m to £1.54m. The dividend was doubled to £64,623, but director remuneration fell from £749,854 to £536,844, including a drop from £206,370 to £197,161 for the highest-paid.
Shareholder funds increased sharply from £3.4m to £4.2m. The workforce was boosted by six to 142, though staff costs were down from £2.63m to £2.55m.
The directors say the market's regulatory regimes, along with direct and indirect cost pressures, will continue to present significant challenges. "However the directors are confident that the strength of the company's brands, the long-established relationships with blue-chip customers, the commitment to investment.....and the active management of costs....(will) ensure that the company is well-placed to meet these challenges."
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