In its full year results to March 2018, it reported that turnover rose £4.1m to £104.1m, representing a 4% rise compared with 2017.
Profit before tax and exceptional items was £1.3m, the same as in 2017. However, due to an exceptional cost item, the reported pre-tax profit was £0.4m.
Graham’s made continued investment in plant and machinery, equipment and motor vehicles representing a capex investment of £2m as it continued to expand its business and maintain an up-to-date fleet to allow efficient distribution.
Graham’s strategy over the year was driven by new product development, with the business launching Graham’s Skyr, a cultured dairy product native to Iceland, which has achieved multiple Scottish and UK listings.
Graham’s also expanded its high-protein range with the launch of Protein 40 milk, listed in Sainsbury’s in October 2018. Protein 40 is 100% Jersey milk containing only 1% fat and 40g of protein per bottle.
Managing director Robert Graham said: “We continue to grow our business partnerships with major retailers and now over half the Scottish population buy Graham’s products. Going forward, we will constantly innovate to expand our award-winning product range both within the UK and beyond.
“Despite the challenging backdrop of balancing supply, demand of raw milk prices and the exceptional item of £0.86m, we have made significant progress throughout the year in relation to key elements of our strategy. We are well positioned to take advantage of upcoming opportunities in the market place while at the same time looking to improve efficiency and profitability.”
Other highlights for the business included numerous awards for its Organic Slightly Salted Spreadable Butter, Gold Top Jersey Double Cream and Natural Cottage Cheese at the prestigious 2018 Great Taste Awards. Less positive for Graham’s was the refusal by Scottish ministers to give the go-ahead for a development at Airthrey Kerse in Stirlingshire. An appeal has been made to the Court of Session, with a final decision still pending.
Graham criticised the decision to refuse planning permission for the 600-home development at Airthrey Kerse.
“While we are extremely disappointed with the final decision to dismiss a planning appeal that, if successful, would have resulted in significant investment in a new dairy facility, we will continue to endeavour to innovate and deliver great Scottish dairy products for the benefit of our customers, employees and our farming partners.”