Rothes-based Forsyths has entered its latest trading year with lower expectations after an “excellent” 2007-08, accounts from the engineering firm show.
Forsyths, a coppersmithing and steel-fabrication business serving the distilling and oil industries, saw pre-tax profits soar nearly 70% to £3.98million in the 12 months to October 31.
Gross profits jumped to £6.44million in the latest period, compared with £4.94million in 2006-07.
In a report with the accounts, released by Companies House, yesterday the directors said: “The performance for the year has been excellent.”
The firm said 2008-09 growth was likely to be more modest, adding: “The current economic climate has inevitably introduced an element of uncertainty to the forecasting of future trading prospects.
“The directors do not anticipate that the increases in profitability seen in recent years will continue until there is a reversal in the current world economic cycle.”
Forsyths’ two main markets – whisky and energy – had already peaked after several buoyant years, chairman and managing director Richard Forsyth said yesterday. He added: “It will be a surprise if we can match last year’s performance. The whisky market is still relatively buoyant but oil and gas business has levelled off.”
Forsyths’ accounts also reveal a large payout for a director who retired last July.
The MD’s elder brother, William Forsyth, earned £2.15million from the sale to the firm of 88,481 shares: nearly half of the company.
The firm – part of Forsyths Group – gave its top earning director a salary and pension package worth £374,887 last year, against £223,194 for the best-paid boss in 2006-07.
The subsidiary employed 153 people, on average, during the latest period, up from 134 the previous year.
Forsyths Group, which also includes Forblast, Grants (Dufftown), G and A Construction and McCormacks, has shed about 5% of jobs from a total workforce of nearly 300 in recent months in response to the anticipated slowdown.