The managing director of Angus jam manufacturer Mackays said the business has faced the most challenging year in its history.
The company can trace its roots to 1938 when a carrot processing facility in Carnoustie was converted into jam-making sourcing berries from nearby fields.
The operation, which employs more than 100 staff, moved to an 80,000 sq ft facility in Arbroath in 2008.
Mackays produces jams and preserves under its own name and also has the Mrs Bridges brand.
Managing director Martin Grant said Mackays faced “significant pressures” last year as sales dipped and an increase in costs was unable to be passed to customers.
After being owned by the Grant family for more than 25 years, the majority shareholding was sold to Canadian business Mitchells Foods a year ago.
Sales drop and margins squeezed
Newly filed financial accounts for Mackays Limited show turnover fell by more than 21% last year – from £18.7 million in 2022 to £14.6m last year.
After recording a pre-tax loss of £442,165 in 2022, the company went further into the red with a £2.8m loss.
In his report accompanying the accounts, Mr Grant said: “2023 was the most challenging year of trading in Mackays history.
“This was as a result of lingering economic effects of the pandemic and a series of global events which led to unparalleled increases in raw material prices and energy costs.
“The company was unable to pass on those increases in raw materials onto customers via higher prices, compressing margins.
“The board acknowledges the continued support and dedication of its outstanding workforce and its loyal suppliers and customers during 2023.
“As a result of the significant pressures on the company, turnover decreased by 21.9% to £14.6m (£18.7m in 2022).”
Investment into Angus firm Mackays
Mr Grant said the sale of the majority of shares to Mitchells Foods means Mackays is now “adequately funded”.
He notes the company is debt-free and that Mitchells shares the vision of achieving “long-term profitable growth”.
He said the business has “stabilised” since the end of the financial year.
He adds: “The investment recapitalised the company. As a result the company has no third-party borrowings and has elevated levels of working capital.
“The external investment has put the company on a strong platform for future growth the ensure Mackays has a long, bright future ahead.”
During the financial year, Mackays employed an average of 129 staff.
International sales showed more resilience than the UK. 30% of the company’s products were sold abroad, up from 28% in 2022.
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