A FAMOUS Moray cashmere firm has vowed to come back fighting after dipping into the red because of a mild winter.
Johnstons of Elgin’s accounts reveal that the firm made a loss of more than £1million last year.
The cashmere and luxury woollens specialist – which employs more than 450 people at its Elgin factory – had a pre-tax loss of £1.805million last year against a profit of £2.63million in 2011.
And the company’s turnover dropped from £51.2million to £46.8million.
However, the firm, which dates back to 1797, said it had seen a “significant recovery” in 2013 and it was hoping turnover would exceed £50million in the current financial year up to the end of December.
It has also vowed to work with markets across the world to keep the business buoyant.
The accounts, released by Companies House, suggested the firm believed the drop in turnover in 2012 had been due to a tumble in UK sales.
And the firm pointed out that the mild winter of 2011-12 had followed cold winters in 2009-10 and 2010-11.
UK turnover fell from £38.16million in 2011 to £33.3million in 2012, while turnover from exports rose from £13.04million to £13.53million.
Increases in business in Japan and with French “luxury branded customers”, such as Chanel, were hailed as positive.
The directors state in the accounts: “Our order book is much more healthy than it was in the previous year. Customers have de-stocked and the flow of orders is now more consistent.
“Work continues on the development of additional business for the Johnstons brand in wholesale, our e-commerce business is growing and our luxury branded customers are showing positive growth.”
A company spokesman said: “Johnstons of Elgin employs 450 people on the Elgin site. A hundred of those work full and part time in our retail shop, which has 200,000 visitors each year.
“We are Scottish to the core and have been proudly manufacturing in Scotland since 1797.
“We produce timeless classics, whether it be in apparel cloth, cloth for interiors, woven scarves and rugs or knitted garments and accessories.
“We are very fortunate to have established strong working partnerships over the years with some of the world’s leading couture houses, who are proud to carry products with a Made in Scotland label sewn on.”
He added that the firm would continue to “push the boundaries” in design to keep the business booming. “The Johnstons of Elgin label brand itself is seen throughout the world and our key markets are USA, Japan and Europe,” the spokesman said.
The firm has also been supporting a modern-apprenticeship programme.
Johnstons recently awarded 20 Elgin-based yarn-store and weaving employees certificates from Creative Skillset, a skills council for the creative industries. The programme aims to arm people with traditional textile skills. The apprenticeship scheme will now be rolled out across the entire production process.
The company’s human resources director, Willie Wood, said: “This initiative forms part of our strategy of retaining and upskilling existing staff, and training new employees, in the traditional and developing textile skills.”