Johnstons of Elgin, one of Scotland's leading textile companies has announced it is bouncing back from the pandemic but warned that prices can be expected to rise, the BBC reports.

Johnstons, which has mills in Moray in the Scottish Highlands and in Hawick in the Scottish Borders, recently filed accounts showing that sales rose by 28% last year, compared with the first year of the pandemic, to reach £66m. The company made a pre-tax profit of nearly £4 million, after a loss of £4 million in 2020. In 2019, it had sales of £77 million, with profits above £6 million, according to the report.

The manufacturer of cashmere knitwear and accessories, for both luxury brands and for its own Johnstons of Elgin label, has around 1000 employees, including some in its retail outlets. Chief executive Chris Gaffney said that staffing is expected to increase, the report said.

The company reported the outlook for this year as 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,” he concluded.

Johnstons of Elgin was founded in 1797 and is family-owned.