SCOTTISH shortbread-maker Dean’s of Huntly saw its profits fall in its last financial year, in spite of turnover growth, as rising commodity prices took their toll.
Dean’s of Huntly had last April flagged an anticipated impact of increases in butter prices on profits for the year to June 30, 2018.
Accounts which have just become available from Companies House show that Dean’s of Huntly increased turnover by 5.3% to £8.85 million in the year to June 2018. However, pre-tax profits fell from £473,476 to £317,978 as the company’s cost of sales increased from £5.81m to £6.21m.
In their strategic report on the accounts, the directors of Dean’s of Huntly say: “The company has made continued progress, increasing the turnover by 5.3% on the previous year. With commodity prices dramatically increased during the financial year, this has adversely affected the gross profit margin.”
In the context of the net profit margin, the directors also cite an increase in business rates.
They say: “The directors have worked hard to ensure all costs have been controlled during the year. In addition, they have responded to the market with the accelerated introduction of relevant new products, attracting new customers in line with the company’s strategy.”
The company’s average number of employees in the year to June 2018, at 159, was down from 167 in the prior 12 months. The workforce in the latest financial year included 139 production staff, down from 147 in the prior 12 months. Total directors’ pay increased to £328,421 in the year to June 2018, from £293,177 in the prior 12 months.
The company’s exports rose to £782,022 in the 12 months to June 2018, from £361,391 in the prior year.
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