The Glasgow-based group achieved a turnover of £143.9m (2012: £141.8m) across its divisions, while pre-tax profit before exceptional items grew from £4.5m to £5.1m. This was adjusted to £4.7m after incurring one-off costs related to property leases and carrying charges.

The group’s packaging and distribution arm increased revenues from £114.8m in 2012 to £116.3m last year, while its manufacturing operations grew slightly from £27m to £27.6m.

Commenting on the results Macfarlane Group chairman Graeme Bisset said the early signs of economic recovery that were now visible in the UK market were welcome but should not mask the fact that 2013 was another challenging year.

“The real incomes of UK consumers remain below pre-recession levels though with some signs that the corner will be turned in 2014. The story on business investment is one of rising confidence and future action but with only limited progress in 2013.

“Against that backdrop, further growth in our profits in 2013 represents a very solid performance and one that can be built upon as conditions improve."

Net debt in the period reduced from £6.8m to £5.9m while this month the group also agreed a new three-year £20m financing agreement with Lloyds Banking Group that Bisset said would enable the company to sustain its organic growth, support expansion through a controlled acquisition strategy and further reduce its pension deficit, which was down from £18.9m in 2012 to £15.9m at the end of 2013.

Bisset said: “Overall increases in market demand remain elusive, but the signs are certainly more positive than they have been for a number of years and we are confident that Macfarlane Group will continue to succeed through its own actions, together with some benefit from improving market conditions.”