GLENMORANGIE'S managing director Peter Darbyshire has decided to become a non-executive so he can devote much more attention to whisky industry affairs. He is being succeeded by Paul Neep, who for the past year has been marketing director. Chairman Geoffrey Maddrell said the change had been planned for quite some time.
One of Darbyshire's functions will be to look for alliances, particularly in overseas distribution, while in Britain he will be examining new ways to promote the various in-house brands.
There have been several board changes in the four years since Maddrell took over to revitalise the family-controlled distiller. Production director Ged Welch left just a month ago to fill a similar position at William Grant & Sons.
The move emerged with the full-year results, which showed pre-tax profits rising 8% to #8.41m. At constant exchange rates, the improvement would have been 12%.
For the first time, Glenmorangie sold more than one million nine-litre cases of the eponymous malt whisky.
The company has seen perhaps the greatest changes of any in the sector, including moving its headquarters from Leith to Broxburn. That has proved particularly astute as it has brought in substantial rental income from third parties looking for bonded storage.
This amounted to #1.81m last year, although there will be a decline this time round as Glenmorangie will require more space for itself.
It is changing the pattern of its business quite substantially by reducing the amount of whisky it sells for bottling overseas.
It slashed aged bulk volumes by more than 60% last year and raised cased volumes 15%, with the bottled-in-Scotland products three times more profitable.
There will be a further drop in bulk sales this year, although these will always be part of the strategy of balancing stocks to maintain the tastes of the blended whiskies and to provide own-label brands to supermarket chains such as Sainsbury and Waitrose.
The net result will be a reduction in half-time profits this year as the seasonal pattern is altered - from now on the greater part will be earned in the second six months.
The core Glenmorangie has been out-performing the malt sector with a 5% volume gain and holding number two position in both the UK on and off-trades - Glenfiddich outsells it by about 50% in both categories.
The value of the brand sales increased by 11%.
There were strong performances in wood finishes - final maturation takes place in former sherry, madeira, port or claret casks to add a different flavour - which sell at a premium and by the 18-year-old - the ''standard'' Glenmorangie is 10 years old.
Finance director Iain Hamilton said the value of the stocks, which rose #5m during the year to more than #57m, would be about two-and-a-half times higher on a current market value.
The #7m purchase of the Ardbeg malt distillery in Islay was making a small contribution above the financing cost
There were sterling performances from Glen Moray malt and the 20-year-old Martins blend which is popular in Portugal.
The strength of the link with US distributor Brown-Forman has helped the Highland Queen blend to do well in Africa - it is market leader in Ethiopia.
The ventures in India and China have still to contribute and it may be another two years before significant sums are seen.
Maddrell said the share structure, with high voting 'B' shares controlled by the Macdonald family and charitable trusts, was unlikely to be altered until a significant acquisition was made.
The dividend total has been increased by 8% . The payment on the 'A' shares amounts to 14.2p with a 10.95p final.
The 'A' shares closed unchanged at 780p with no transactions.
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