North-east porridge maker Hamlyns of Scotland plunged into the red last year following one of the worst oat harvests on record.
Hamlyns makes oat flakes, oatmeal and a range of other oat-based products at its mill at Boyndie.
It buys oats from farmers across Scotland, from Thurso to the Borders.
A horrendous oat harvest in 2012 was cited as the main reason for the company posting a loss last year, with directors describing the result as “wholly unsatisfactory”.
Profits at the Banff-based firm fell more than 250% in the year to July 31, 2013, according to accounts filed with Companies House.
The business posted a pre-tax loss of £255,896 last year – down from a pre-tax profit of £169,258 the year before.
Turnover at the firm fell nearly 5% to £17.8million, from £18.7million previously.
The firm said: “The directors consider the result to be wholly unsatisfactory and it has been substantially caused by the failure of the 2012 UK oat harvest.
“The quantity of oats processed in Scotland fell to a record low and the quality of the crop in much of the rest of the UK was exceptionally poor, making it one of the worst harvests on record. It has inevitably impacted very severely on these results.”
In 2012, the firm invested £3.5million in the installation of a wind turbine to generate the bulk of its electricity needs – surplus power is sold to the national grid.
Hamlyns, which sells own-brand products and packs a range of private label products for retailers, has also installed new packing machinery in the past few years to help it stay ahead of competitors.
The company is owned by Crewe-based Morning Foods and its managing director is Alan Meikle.
The company was not available to comment on the results, but figures from the Scottish Government paint a brighter picture for the availability of oats this year. The latest estimates suggest a larger area of oats was planted by farmers last autumn than the year before.
Results from the December agricultural survey reveal winter oats plantings are up 18.9% on last year at 20,440 acres.