One of Scotland’s smallest meat processors has blamed a challenging and competitive marketplace for a 35.7% drop in profits.
Grantown-based Millers of Speyside posted pre-tax profits of £283,834 for the year ending August 31, 2015, compared with £441,560 the year before.
Accounts filed with Companies House reveal a 5% increase in turnover to £16.684million, from £15.898million previously.
The majority of the company’s sales – £14.532million – was within the UK, up from £14.089million in 2014.
Export sales to mainland Europe bounced back in the year to £2.085million, from £1.809million previously. This follows a 17% drop in European sales the year before.
The company said the results were expected.
In a report with the accounts, the firm said: “The business environment in which we operate continues to be challenging and competitive. This is unlikely to change for the foreseeable future.
“The company has bank loans of £132,201 with interest rates fixed until review and is therefore exposed to any changes in the interest rate in the long term.
“With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.”
Managing director Sandy Milne said profits were down because margins were being squeezed and product had been hard to sell.
“Cattle have been cheaper but of course it does not mean to say we have any more for it. The fact that the pound has been so strong means our export sales have been difficult.”
He said the plant was killing around 250 cattle and 200 pigs every week.
The accounts revealed the directors’ pay for the year, including company pension contributions, was down 28% to £120,241.