Positive outlook for Johnstons of Elgin after reporting a healthy £3.9m pre-tax profit
![Positive outlook for Johnstons of Elgin after reporting a healthy £3.9m pre-tax profit](https://www.scottishfinancialnews.com/uploads/Chris_Gaffney.jpg)
Chris Gaffney
Johnstons of Elgin has reported a pre-tax profit of £3.9 million after a 28% rise in sales for the last year.
The family-owned textile firm has a positive outlook as the business is expected to recover to pre-pandemic levels this year. However, the positive outlook comes with expectations of product price increases as inflation raises costs.
Demand improved progressively through the year and the company exited the year with employee numbers at a similar level to before the pandemic in 2019.
The outlook for 2022 is good, with sales expected to exceed pre-pandemic levels, though there are some headwinds in terms of cost inflation that will start to filter though in the latter part of the year and into 2023.
Chris Gaffney, chief executive, commented: “2021 was a year of recovery for Johnstons and we are pleased to have bounced back so strongly.
“The skill of our craftspeople and the creativity of our design team, allows us to manufacture beautiful products that live for a long time in our customers wardrobes, whilst our use of natural fibres and control of our supply chain, through our mills in Scotland, enables us to better manage our environmental and social footprint.
“This combination makes us a strong partner for the luxury brands we work with and an engaging consumer brand in our own right. The future is therefore positive, and we expect to continue to recruit staff and invest in additional capacity in the coming years.
“This October will mark the 225th anniversary of the founding of the business by Alexander Johnston. We look forward to celebrating this milestone with our colleagues and partners.”