Macphie fights off challenging market to deliver turnover growth
In its financial results for the year to March 2018, Macphie reported a 3.3% increase in turnover to £55.7m (£53.9m in 2017).
However, its gross profit declined to 25.4% (from 28.4% in 2017), with operating profit in the year falling to £3.1m from £5.9m in 2017.
CEO Andy Stapley said: “In 2017, Macphie returned a record profit in what were very favourable market conditions. Against a more challenging backdrop this year, this is a positive set of results.
“The sector operates with tight margins, as we continue to produce premium products in a highly competitive industry, which has seen some well-publicised challenges in the UK casual dining sector. Inflationary pressure in the period combined with volatility in the raw material market – especially dairy products – did present some headwinds.”
Technology investment
Other recent highlights for the business included a major investment in technology.
“Our investment of over £5m in technology in the last two years means we are able to drive stronger operational performance and productivity,” said Stapley. “Our established customer relationships and detailed insight into consumer trends also mean we are well placed to maximise developing market opportunities.”
Stapley added that the future seemed positive for Macphie, despite the current Brexit situation. “While the shadow of Brexit creates uncertainty across every industry, with a weakened sterling and the threat of tariffs, our outlook remains positive as we work to secure our supply chain.
“Looking ahead, we are a strong and profitable business that will continue to invest and grow, pursuing new opportunities both here in the UK and overseas.”
Stapley was appointed to the CEO role in November, replacing Andy Underwood. He was previously managing director of Kensey Foods.
Chairman Alastair Macphie added: “Our focus at Macphie has always been on achieving stable and profitable growth that provides jobs and creates wealth in the local area, rather than maximising short-term returns for shareholders.
“Given the challenging market environment, these results reflect a balanced and resilient business.
“With the current political landscape giving the UK an uncertain economic outlook, as a business we will continue to monitor developments and act to minimise any adverse impact.”
