Textile firm Johnstons of Elgin bounces back from pandemic

The firm was founded 225 years ago

Johnstons of Elgin, one of Scotland's leading textile firms, has said it is bouncing back from the pandemic but warned prices can be expected to rise.

The firm - which has mills in Moray and Hawick- has filed accounts saying sales rose last year by 28%, compared with the first year of the pandemic, to reach £66m.

It made a pre-tax profit of nearly £4m, after a loss of £4m for 2020.

In 2019, it had sales of £77m, with profits above £6m.

That was a decline from £10m profit for 2018.

The manufacturer of woollens and cashmere garments, some for luxury own-brand labels and some under its own Johnstons of Elgin label, has about 1,000 employees, including some in its retail outlets.

Chris Gaffney said staffing was expected to rise

Chief executive Chris Gaffney said that staffing is expected to increase.

The firm reported the outlook for this year is good, with sales expected to exceed pre-pandemic levels, "though there are headwinds in terms of cost inflation that will start to filter through in the latter part of the year and into 2023".

Mr Gaffney said Johnstons of Elgin had skilled craftspeople and creative designers, using natural fibres, and controlled its own supply chains.

"This combination makes us a strong partner for the luxury brands we work with, and an engaging consumer brand in our own right," he said.

"The future is positive and we expect to continue to recruit staff and invest in additional capacity."

The firm was founded in 1797 and is family-owned.