Food ingredient manufacturer Macphie has said it is “on the road to recovery” after a strong summer sales period.
The company is now on a “strong footing”, thanks to swift action after the onset of the Covid-19 pandemic, Andy Stapley, the north-east firm’s chief executive added.
Mr Stapley was speaking after Macphie, which is headquartered on the 2,000-acre Glenbervie Estate near Stonehaven, filed accounts showing the impact of the virus on sales during the year to March 31 2021. Turnover fell more than 21% to £44.6 million.
The plunge in sales came as a direct consequence of Covid-19 and its “devastating impact” on the company’s foodservice customers, Macphie’s CEO said.
But he also revealed a record sales performance in the first quarter of 2021-22, as the UK’s hospitality emerged from the crisis, with demand exceeding pre-pandemic levels.
“Restrictions placed on hospitality over the last 18 months have had a huge impact on our business”, Mr Stapley said.
‘Modest’ profit
He added: “Despite these challenges, we were pleased to close the year… with a modest profit, strong balance sheet and healthy pipeline of commercial opportunity.
“We quickly recognised the impact Covid-19 would have on our business and made difficult decisions early to reduce our cost base in line with the changing environment.”
The company consolidated all manufacturing to its Aberdeenshire base, ceasing manufacturing operations in Glasgow which “unfortunately saw us making a number of positions redundant”, Mr Stapley said.
He added: “This action, along with tight cost control across our business enabled us to emerge from the year on a strong footing.
Bouncing back
“Throughout the last 18 months, retail demand and international orders remained strong, offsetting to some degree the devastation in the foodservice sector. Since restrictions began to ease at the start of summer, we’ve seen like for like sales demand already exceeding previous years.
“These factors, underpinned by a rebranding exercise and a pipeline of strong long-term commercial opportunity have set us up on the road to recovery.
“Going forward, our strategic focus remains on growth within our core business, with a clear plan to expand our primary proposition to other sectors to rebalance our overall portfolio.”
Profits fell by 75%
Pre-tax profits for 2020-21 came in at £626,614, down from more than £2.5m a year earlier.
Chairman Alastair Macphie said: “Our people have shown incredible resilience throughout what has been a very difficult time. This determination has meant we’ve weathered the storm well and we’re in a good position to move forward.”
Family-owned Macphie makes products used by bakers, pubs, restaurants, hotels, ready-made food firms and caterers around the world. It employs nearly 200 people.
Glasgow roots
The firm was founded in Glasgow as a wholesale business by Alister Macphie, the current chairman’s great-uncle, in the 1920s.
It moved into manufacturing in the 1970s and its headquarters were relocated to Glenbervie – where the Macphie family had been farming for more than 700 years – in 1973.
The company made 93 redundancies in total early on in the pandemic, including 55 in Glasgow and 38 in Aberdeenshire.
North-east ingredient manufacturer enjoys bakery sales boost in UK and abroad
