MORRISON Bowmore Distillers achieved a further jump in profits last year as its single malts turned in strong performances amid the continuing buoyancy of the wider Scotch whisky industry, newly filed accounts reveal.
The Glasgow-based company's directors describe the financial performance as "excellent" in their report on the accounts,which have just become available from Companies House.
The accounts show that Morrison Bowmore enjoyed a 39% rise in pre-tax profits to £8.49 million last year.
This rise in profits at the company, which is led by long-serving chief executive Mike Keiller, was achieved on the back of a 12% rise in turnover to £49.8m.
The latest jump in earnings followed an 84% leap in pre-tax profits to £6.11m in 2011, from £3.33m in 2010.
In their report on the accounts, the directors of Morrison Bowmore highlighted a significant increase in turnover and profits last year for the company's single-malt brands of Bowmore, Auchentoshan, Glen Garioch, and McClellands.
They said: "The results for the 12 months to 31 December 2012 have recorded significant growth in the financial performance of the company over the previous year.
"This excellent performance is the result of the company's continued strategy of focusing resources and investment behind our single-malt brands."
The directors noted that the borrowings of the company, owned by Japanese drinks giant Suntory, increased during 2012 as Morrison Bowmore continued to invest in long-term whisky stocks to meet growing demand for its single-malt brands.
Morrison Bowmore's borrowings rose from £25.1m to £37.7m last year, the accounts show. The bulk of the borrowings are from within the Suntory group.
The average number of staff employed by Morrison Bowmore in 2012 was 208, the accounts show, up from 199 in 2011.
The Scotch whisky sector has defied the economic downturn in recent years, turning in a very strong export performance.
Drinks companies Diageo and Pernod Ricard are investing heavily to increase their Scotch whisky production capacity. And Glasgow-based Edrington, which produces The Famous Grouse and The Macallan, recently highlighted its intention to increase its capacity.
Scotch whisky exports edged up by 1% to a record £4.27 billion in 2012, in spite of a 5% fall in the number of bottles sold, according to industry figures published in April.
This modest growth in the value of exports in 2012, recorded in figures published by the Scotch Whisky Association, followed a 23% leap in overseas sales in 2011.
Morrison Bowmore's latest accounts show that the remuneration of the highest-paid director rose to £405,000 last year, from £381,000 in 2011. Total boardroom pay increased from £718,000 to £762,000.
Suntory acquired a stake in Morrison Bowmore in 1989. It took 100% ownership in 1994. The Japanese owner has cited the success of its strategy of making Morrison Bowmore a profitable business by reducing reliance on the volatile bulk whisky market and focusing on building the brands.
Morrison Bowmore's accounts show that sales per employee rose to £239,000 in 2012. This figure was stated at £224,000 for 2011 in the prior-year accounts.
The company's employees are split between Morrison Bowmore's head office at Springburn in Glasgow and three distilleries, Bowmore on Islay, Glen Garioch at Oldmeldrum in Aberdeenshire, and Auchentoshan, by Clydebank, near Glasgow.
Inver House Distillers announced this week that its profits had fallen in 2012, with the Airdrie-based company having opted to buy in stock in order to save spirit for more lucrative older releases.
Turnover at Old Pulteney producer Inver House rose by 13% to £91.1m in 2012. But underlying operating profit fell by 10.6% to £12.6m.
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