Sticky Year for Local Jam Producer
The managing director of Angus jam manufacturer Mackays said the business has faced the most challenging year in its history.
The company, which can trace its roots to 1938, employs more than 100 staff. It produces jams and preserves under its own name and the Mrs Bridges brand.
Martin Grant said Mackays faced “significant pressures” last year as sales dipped and an increase in costs was unable to be passed to customers.
Financial accounts show turnover fell by more than 21% last year – from £18.7 million in 2022 to £14.6 million last year.
After recording a pre-tax loss of £442,165 in 2022, the company went further into the red with a £2.8 million loss.
Mr Grant said: “2023 was the most challenging year of trading in Mackays’ history.
“This was as a result of lingering economic effects of the pandemic and a series of global events that led to unparalleled increases in raw material prices and energy costs.
“The company was unable to pass on those increases in raw materials on to customers via higher prices.
“The board acknowledges the continued support and dedication of its outstanding workforce and its loyal suppliers and customers during 2023.
“As a result of the significant pressures on the company, turnover decreased by 21.9% to £14.6 million (£18.7 million in 2022).”
Mr Grant said the sale of the majority of sales to Canadian business Mitchell Foods a year ago means Mackays is now “adequately funded”.
He notes the company is debt free and that Mitchells shares the vision of achieving “long-term profitable growth” and that the business has “stabilised” since the end of the financial year.
He adds: “The investment recapitalised the company.
“As a result, the company has no third-party borrowings and has elevated levels of working capital.
“The external investment has put the company on a strong platform for future growth to ensure Mackays has a long, bright future ahead.”
During the financial year, Mackays employed an average of 129 staff.
International sales showed more resilience than the UK, with 30% of the company’s products sold abroad, up from 28% in 2022.
This article appeared in The Courier on 7 October 2024.
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