ONE of Scotland's best known meat processors, JW Galloway, which owns Scotbeef, Vivers Scotland and Scotbeef, Inverurie, has reported a 12% increase in profits.

The family-owned business revealed pre-tax profits for the year ended February 26, 2017, of £6.3m – up £0.7m on the previous year.

Turnover increased from £311m in 2016 to £319.9m, which is a rise of almost 3% on the year bolstered by increased UK and export sales. Throughout the year, UK sales increased from £271.4m to £279.3m, while exports saw a £936,000 rise to £40.5m.

"Strong price inflation on livestock was experienced for an extended period with the results of the group showing improvement to operating profit level due principally to strong cost management," managing director, Robbie Galloway said in the accounts report.

However, while overall profits improved, individual accounts for Scotbeef Inverurie, highlighted a drop in turnover and profits. The firm, which is jointly owned by JW Galloway and North-east farmers' co-operative, Aberdeen and Northern Marts Group, saw pre-tax profits fall a massive 60% from £901,000 to £358,000. Turnover was also down, from £57.5m to £53.5m.

According to the report, this was due to particularly challenging conditions, especially for the company's traditional high street butcher customers, which affected sales volumes.