Dundee food-packaging company Rockwell Solutions expects profits to soar after one of the biggest capital expenditure investments on the east coast of Scotland.
Pre-tax profits at the winner of The Courier’s family business of the year award in 2014 fell by almost 60% to just above £300,000.
Rockwell, based at the Wester Gourdie industrial estate, makes flexible and heat-sealed packaging for the food industry.
After many years in potato crisp and confectionery markets, the company, run by the Okhai family, branched into lidding films for ready meals and chilled foods.
The company’s turnover was slightly down last year at £10.24 million, and operating profit almost halved at £463,000, giving a pre-tax profit down from £743,999 to £308,237.
Director Zain Okhai said the ongoing £8m Rockstar project to produce solvent-free heat layers was completed last year and the venture has moved to machine testing and commissioning of new products.
Rockwell had unpacked and financed 53 40ft containers of equipment which has been installed as part of a £1m factory upgrade for a 70-metre extrusion configuration.
With support from the stable customer base, he said Rockwell is at the very least strong, stable and growing with a workforce that has risen to 74.
He predicted the varied, international and large pipeline of new business will deliver good profitability in the coming years.
In turn the support by its entire supplier base has helped make the company the place of “possibly one of the biggest manufacturing capex (capital expenditure) investments on the east coast of Scotland,” he said.
“As a result of the major capex project, 2014 has been a transitional year in terms of profitability due to the building up of the company’s operational and administrative infrastructure which has been necessary to deal with the improved productive capacity that has been created.
“Full benefits of this investment are expected to be realised towards the end of this financial year and into 2016.”