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Mackays spreads its sales with more exports

Mackays products are sold in more than 80 countries. Picture: Kim Cessford.
Mackays products are sold in more than 80 countries. Picture: Kim Cessford.

International sales growth was behind an increase in revenue for Arbroath-based jam and preserves manufacturer Mackays last year.

The company’s UK sales were flat last year but international sales grew to 31% of turnover, up from 24% in 2015.

Sales increased by 6.6% from £17.4 million to £18.6m in the year ending December 31 2016.

Pre-tax profit fell from £866,000 in 2015 to £654,000 last year.

The company, which is based at Kirkton Industrial Estate, is one of the UK’s major jam, marmalade, preserve, chutney and relish producers.

It trades under the Mrs Bridges and Mackays brands and exports to around 80 countries.

Managing director Martin Grant said Mrs Bridges had undergone a complete rebranding this year to help it “continue to hold a market leading position”.

He added: “At the heart of the business and, indeed profitability, lie our brands.

“Mackays continued to develop in home and international markets and the board places great emphasis on this.

“Raw material costs are stable but are under constant review.

“Future pricing arrangements with key suppliers will continue for the foreseeable future although the drop in the value of sterling has to be continually monitored.”

The business has continued its policy of capital investment and spent £210,000 during the financial year on bringing improving manufacturing efficiency, updating IT systems, replacing vehicles and on office facilities.

The average number of people employed during the year dropped from 176 to 157.

Mr Grant said currency fluctuations were a concern for the company.

He added: “The board believes that the operating margin can be maintained in 2017. International markets remain challenging.

“Conversations with the company’s bankers are ongoing in respect of currency transactions in order to mitigate the effect of these as far as possible.

“Ultimately, the board believes that the enduring nature of customer relationships and the absolute quality of the products manufactured, coupled with a long-term programme of capital investment leaves the company well placed to meet the challenges of the current economic environment.”

The firm, which produces Dundee Orange marmalade, was originally founded by the Mackay brothers in 1938.

It has been in the hands of the Grant family since entrepreneur Paul Grant bought the business in 1995.

rmclaren@thecourier.co.uk