EGG producer Glenrath Farms has reported a 70% rise in profit on the back of efficiency measures and an increase in sales.

Turnover at the West Linton, Peeblesshire, business grew 17% from £43 million to £50.5m which helped to push up pre-tax profits from £4.7m to £8m.

Distribution costs increased from £6.1m to £6.6m but Glenrath managed to shave more than £450,000 from its administrative bill to bring that down to £1.29m in the 12 months to May 31, 2012.

Glenrath said it was "extremely pleased" with how new brands Kitty Campbell's Free Range Eggs and Cage Free Barn Eggs have been performing. But the rising cost of chicken feed was an area of concern.

The directors said: "[We] continue to be concerned with the cost of feed which constitutes 60% of primary production costs. Fortunately the company has been able to recover most of the cost increases in feed from the market place over the past year."

Glenrath is the largest free range egg producer in Europe and supplies supermarkets including Sainsbury's and Tesco. It said the introduction of a new European Union directive on providing greater space for laying hens at the start of 2012 resulted in the price of second quality eggs rocketing.

Prior to the new rules those eggs were 7.5p per dozen but had rocketed to £1.10 per dozen by March last year, although have since fallen back to around 50p.

In accounts filed at Companies House, Glenrath, owned by the Campbell family, said: "Clearly imported eggs from non- compliant EU countries are continuing to enter the UK egg processing market

"We are fortunate that our customers, the UK major multiple retailers, are committed to purchase free range and all other eggs from enriched colonies produce in the UK."

Glenrath said the rise in profits was boosted by "new efficient technologies and equipment to streamline technologies" and it was continuing to look at further ways to improve performance including use of alternative energy and the introduction of robotics at its packing centre.

The company paid out £5.1m to acquire tangible assets during the year. That included 300 acres of land and two 16,000 bird units at Kirklawhill Farm at Skirling in the Scottish Borders.

Glenrath said that took its land holdings to 2500 acres and total investment since 2000 to £50m. The net funds position during the year increased from £12.8m to £15.1m.

Average employee numbers increased from 202 to 217 although employee costs fell from £4.3m to £4.2m. Directors' remuneration dipped from £487,531 to £336,807.