ANGUS marmalade and jam producer Mackays has achieved a near-14 per cent hike in annual profits.

The family business, which supplies major UK supermarket chains and exports to about 78 countries, revealed that “unbelievable” sales of its strawberry jam had seen this product overtake the company’s Dundee orange marmalade last year as its best-selling line.

Martin Grant, managing director of Mackays, emphasised that this did not reflect any softness in demand for Dundee orange marmalade. And he highlighted the appetite for Mackays’ marmalade not only in the UK but also in overseas markets including Germany, Japan and Scandinavia.

The US and Canada are also major export markets for Mackays.

The company, which employs about 150 people at its manufacturing base in Arbroath, has posted pre-tax profits of £836,554 for the year to December 31, 2014. This is up by 13.7 per cent on the prior 12 months.

The company, which makes preserves, curds and chutney as well as jam and marmalade, undertook capital expenditure of £376,648 in 2014 as it increased its manufacturing capacity with an eye on future growth.

Mr Grant highlighted the company’s investment in labelling lines.

Mackays’ turnover rose to £17 million last year, from £16.8m in 2013.

Exports accounted for 29 per cent of turnover in 2014.

This percentage has fallen in recent years, but Mr Grant noted this was in large part because of the strength of sales in the UK.

And he highlighted his confidence that Mackays could build exports to 40 per cent of total turnover again in the next three to five years, given the strength of its partnerships in overseas markets.

Mr Grant noted that currency factors had made life tougher in some overseas markets in recent times.

Mackays, which sells under its own name and the Mrs Bridges brand, supplies supermarket groups Tesco, Wm Morrison, Sainsbury, and Asda, as well as the Co-op.

Highlighting the challenges in recent times for supermarkets and their suppliers, Mr Grant said: “We have come through it exceptionally well.”

Mr Grant noted that Mackays had increased its shift patterns, to enable the factory to move to running 24 hours per day on three days each week, from Monday to Wednesday. Normal day shifts are worked on Thursdays and Fridays, with the factory closed at weekends.

Emphasising Mackays’ appetite for continued expansion, Mr Grant said: “That is the ambition of the business – to continue to grow.”

He revealed that Mackays was enjoying further expansion in the current financial year.

Mr Grant said: “We are growing at the moment so far in the financial year. The plan is, based on all the investments made, to continue to grow the business going forward.”

He highlighted the fact that Mackays sourced all of its strawberries, raspberries and blackcurrants locally.

Mr Grant said: “"The loyalty of our workforce and dedication to using the finest ingredients, cooked in small batches using traditional copper pans, delivers an authentic product. This, combined with our drive for new product development, will ensure Mackays continues to increase market share in the industry globally."

Mackays, a business founded in 1938 which supplied the fillings for United Biscuits' jam rings, was transformed into a marmalade and preserve brand following its acquisition in 1995 by Mr Grant’s father, Paul, who had worked for UB for 27 years.

Paul Grant is chairman of Mackays, and the company’s majority shareholder.