IAN MacLeod Distillers, the drinks-maker and bottler, boosted pre-tax profits by almost 50% in the year in which it paid (pounds) 7.2m in cash for Lang's whisky brands and Glengoyne distillery, which makes one of only two unpeated single malts in Scotland.
Formerly the Peter J Russell holding group until January, Broxburn-based Ian MacLeod saw its pre-tax profits climb to (pounds) 616,907 for the year to the
end of September 2003, compared with (pounds) 417,310 the previous year, according to the company's latest accounts.
The group, headed by managing director Leonard Russell, the third generation to run the family-owned business and a major shareholder, has made a dramatic turnaround since 2002, when profits slid by more than half as margins from the production of supermarket own-label whiskies were squeezed even further.
Last year, however, operating profits climbed to (pounds) 1.3m from just over (pounds) 1m on a turnover of (pounds) 20.5m against (pounds) 19.1m last time - evidence in itself of the industry's tight margins.
The company made little comment in its accounts on its improved position.
''The directors regard the state of affairs of the group as satisfactory,'' the company said.
Mike Younger, company secretary, added: ''The group reorganised at the end of last year, bringing Ian MacLeod & Company into Peter J Russell, which then changed its name to Ian MacLeod Distillers.
''We're pleased that our operating profit is up by 30%.''
The declining margins in supermarket own-label production was a driving factor behind Ian MacLeod's decision to buy the Glengoyne malt and Lang's blended whisky brands, and it appears that its impact has already begun to kick in.
The Glengoyne distillery, near Strathblane, just north of Glasgow, and the Lang's brands - both of which were bought from Famous Grouse drinks giant Edrington - were the latest in a string of acquisitions by Ian MacLeod, which in recent years has also purchased the Hedges & Butler and Watson's rums in separate deals.
According to industry insiders, Edrington - which also owns the Macallan and Highland Park malts - rebuffed more lucrative offers from abroad and sold what it privately described as its ''favourite distillery'' to Ian MacLeod because it would be ''true to the tradition of malt whisky-making''.
Ian MacLeod's other brands include McGilligan's Irish Whiskey, King Robert II Scotch, Trawler Rum, and Isle of Skye whisky.
Earlier this year, the company revealed plans to increase capacity at Glengoyne by at least five-fold in a bid to push its unpeated single malt into the global top 10. According to the current ranking, based on world-wide sales of single malt whiskies in 2002, it would have to unseat the current 10th position holder, Balvenie, which sells 100,000 cases a year.
Meanwhile, Ian MacLeod's accounts stated that its highest- paid director last year earned (pounds) 174,599, compared with (pounds) 151,650 the previous year.
The accounts also noted that under the FRS17 accounting standard, the company pension deficit grew to (pounds) 810,000 as of September 2003, compared with (pounds) 116,000 in September 2002.
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