Volatile raw material prices have seen profits plunge 25% at north-east porridge-maker Hamlyns of Scotland.
Accounts filed with Companies House reveal the Banff-based firm posted pre-tax profits of £31,062 for the year to July 31, 2016. The figure is down more than £10,000 on the firm’s pre-tax profits of £41,728 for the previous year.
Annual turnover at Hamlyns rose by £178,825 to £14.85million over the same period
In a statement accompanying the accounts, the company said: “The year has been impacted by extensive volatility in raw materials which has been extremely difficult to manage. This difficulty has impacted directly on the results for the year.”
The statement also noted the directors were “satisfied” with the company’s performance.
Hamlyns, which is owned by Crewe-based Morning Foods and has a workforce of around 46 makes oat flakes, oatmeal and a range of other oat-based products at its mill at Boyndie, near Banff.
It buys oats from farmers across Scotland, from Thurso to the Borders, and its products are stocked by major retailers including Tesco, Asda, Morrisons, Sainsbury’s and the Co-operative.
Established in 1965, Hamlyns originally produced oatmeal and began producing porridge oats in 1973. In 2014 the firm extended its range to include instant porridge in pots and sachets.
The company has had a number of owners over the years, including the North Eastern Farmers co-operative from 1991 until 1997, when it was purchased by Morning Foods.
No-one from Hamlyns was available to comment on the annual results this week, but a spokeswoman for the firm said the mill was currently very busy.
