Scotland business

Coffee firm Matthew Algie reports 'challenging' year

Coffee cup
Image caption The company cited continued volatility in coffee prices as one reason for its "challenging" year

Coffee roaster Matthew Algie saw profits rise last year despite a fall in turnover.

The Glasgow-based company said pre-tax profit increased in 2012 by 11% to £2.5m.

But income fell by 3% to £32.1m after a "challenging yet successful year".

The firm, which will celebrate its 150th year of trading next year, blamed continued volatility in coffee prices and "a still faltering economic picture".

In a statement, Matthew Algie said raw material costs remained high as a result of the 30-year peak in coffee commodity prices in 2011 and elevated premiums for Fairtrade coffee.

Commenting on the results, chairman Eric Hagman said: "In the face of the effects of continued volatility in coffee prices and a still faltering economic picture, the business held its own and we continue to exceed our customers' expectations - be they high-end supermarket chains, luxury hotels or independent coffee shops."

He added: "Trading in 2013 continues to be challenging, but we are on target to see further strong growth this year."

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