THE chief executive of bottled water producer Highland Spring has cited a benefit to the business from “negative publicity around sugary soft drinks” as he celebrates the company’s annual turnover hitting £100 million.

Highland Spring said that it had achieved a rise in underlying annual operating profits to £3.9 million in the year to December 31, 2014, from £3.1m in 2013.

Underlying pre-tax profits, after interest payments, rose to £2.2m last year from £1.4m in 2013.

Turnover rose to £100m in 2014 from £97.7m in 2013.

Highland Spring chief executive Les Montgomery highlighted the fact that the company had doubled its sales over the last 10 years.

And he flagged its ambitions for further expansion, with planned investment of nearly £20m over the coming 12 months, mainly in extension of Highland Spring’s factory at its base at Blackford in Perthshire.

Mr Montgomery noted that capacity at Blackford would be boosted by about 50 per cent as a result of this investment.

He noted that the bottled water category in the UK was in its third consecutive year of double-digit-percentage growth in sales, and contrasted this with a significantly less buoyant performance by the soft-drinks sector.

He said: ““The bottled water category continues to grow as consumers increasingly make healthier drinking choices against the ongoing negative publicity around sugary soft drinks. This long-term consumer trend is set to continue to our advantage.”

Mr Montgomery highlighted potential for Highland Spring, which is owned by the founding Al Tajir family, to reach the milestone of annual sales of 500 million litres of water in 2015. He noted that the total volume of water sold last year was about 470 million litres.

Highland Spring sells still and sparkling water under its own brand. It also produces private-label bottled water for supermarket groups, from the Campsies catchment area, at its plant at Lennoxtown.

Mr Montgomery cited a boost to the business from Highland Spring’s association with the British team in the Davis Cup tennis tournament, with rounds held in the UK having included this month’s semi-final in Glasgow.

He said: “2015 has also been shaping up extremely well, despite the disappointing summer weather. Our ongoing partnership with the Lawn Tennis Association continues to perform well, with the recent Davis Cup coverage showcasing Highland Spring to a global audience and highlighting the importance of healthy hydration.”