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Profits leap at Scottish red meat company

Profits more than doubled at the company.
Profits more than doubled at the company.

Scottish meat processing company A.P. Jess posted a two-fold increase in profits last year despite a drop in turnover.

Accounts filed with Companies House reveal the firm, which also has a stake in an oyster business on the Isle of Barra, posted a 214% increase in profits for the year ended March 31, 2016.

Pre-tax profits for the year rose to £1.452million, from £462,594 previously.

Turnover at the company was down 20% to £13.658million, from £17.047million before.

The firm, which is run by brothers Allan and David Jess, has its main beef processing operation at the Sandyford abattoir in Paisley.

Manufacturing and retail distribution is done at subsidiary firm McKechnie Jess Ltd in Greenock, while a cooked meat business – Charcuterie Continental Ltd – runs out of Twechar, near Glasgow. Most recently the company formed Traigh Mhor Oysters, following a tie-up with Isle of Barra Oysters in 2015.

In his report accompanying the accounts, David Jess, said the year ending March 2016 was the last in a three-year programme of transition for the group following the sale of its pig processing plant at Brechin and salmon processing firm Rossyew.

“There has been a significant investment in Traigh Mhor, the oyster farm, and this company is now selling oysters in small volumes,” added Mr Jess.

He said he expected “significant sales” of oysters from June and July onwards this year.

“Our wholesale operation in Paisley is showing signs of improvement. Our manufacturing company McKechnie Jess has improved sales, but costs are under scrutiny as the increase in turnover is not reflected in the bottom line as much as had been hoped.”