MACPHIE of Glenbervie, the food ingredients manufacturer, has said ongoing uncertainty around Brexit is a “significant concern”.

The comments came in annual accounts to Companies House and fall at a time when there is growing unease over a no-deal Brexit.

It said: “The continuing uncertainty around Brexit remains a significant concern with the business having exposure to potential tariffs on both raw material sourcing and export sales, together with the obvious exposure to potential currency exchange rates.

“The company has formulated a mitigation plan with suppliers and customers as far as possible, also taking into account possible opportunities that may emerge from Brexit.”

READ MORE: Boris Johnson's Brexit timetable branded ‘unrealistic’

Turnover for the year grew 0.4% to £56 million, against £55.7m in 2018, while gross profit for the year increased to 26.6%, up from 25.4%

Operating profit for 2019 was £800,000 against £3.1m the year before, partly connected to new system costs and a pensions issue.

It said: “Sales growth was challenging in the UK, and raw material pricing retained some level of volatility.

“We continue to see opportunity in our international markets, with modest growth continuing with our UK and contract manufacturing base.

READ MORE: Brexit advice helps law firm to record results 

“Operating profit for the year suffered due to a shortfall in target turnover and in-year administration costs related to a new ERP system installed the prior year.

“The company also incurred a statutory charge of £449,000 relating to GMP equalisation within the defined benefit pension fund.”

Macphie said: “Food inflation is now a well-publicised reality and we have a well established mechanisms for managing volatility.

“Given the international nature of the business, from both a purchasing and sales environment, currency exchange rates can have both a positive and negative impact.”

It added: “Despite current economic uncertainty, the company sees strong opportunity in the various markets we operate in and the new board is developing a long term strategic plan to realise this potential.”