North-east animal feed firm Norvite Animal Nutrition is back in the black.
Accounts filed with Companies House reveal the Insch-headquartered company posted a pre-tax profit of £77,327 for the year ended May 31 2018. This compares to a pre-tax loss of £45,602 the year before.
The firm, which has manufacturing sites at Insch, Oldmeldrum and Ochiltree in Ayrshire, as well as operating three country stores, experienced an increase in turnover to £15.058 million for the year – up from £13.394m previously.
In his report accompanying the accounts, managing director Edward Smith said: “The last year has been another tough one for the farming industry, which has put volume and margins under significant pressure in the supply industry and resulted in challenging trading conditions for our business.”
He said the firm had increased turnover with only a small impact on gross margins which reduced from 21.9% to 21.4%.
The increase in turnover and careful management of expenses, where possible, had resulted in the company posting a pre-tax profit, added Mr Smith.
“We are confident that the progress we have made during the year, coupled with developments in recent years, will help us to progress in the future,” said Mr Smith.
“The impact of Brexit on the farming sector is as yet unknown and the company operates in a very competitive environment where the main uncertainties facing the business are the volatile raw materials prices and competition.
“The directors attempt to minimise this risk by utilising contract prices to help reduce exposure to short-term fluctuations and continuing to develop innovative new products.”