The annual results from Glasgow-headquartered First Milk show a net profit of £6m for the year ending 31 March 2017. This is a huge turnaround from the £5.1m loss published in its 2016 accounts.

“Over the last two years, First Milk has transformed. We have put in place a new business strategy, divested loss-making subsidiaries, improved our operational performance and implemented an effective, co-operative governance structure,” First Milk chairman, Clive Sharpe, said. “The year to 31 March 2017 was a year of two halves for the dairy industry, in terms of the cycle of milk price movements. After an extended period of low market prices, the 9p improvement in members’ milk price, which was paid out during the year, was much needed by our farmer members.”

Seven pence of this increase came from improved market returns, with the other two pence reflecting the benefits of restructuring initiatives, he said.

Operating profits were £11.7 for First Milk, almost double the figure from the previous year. Turnover was down £88m to £206.5m, while net bank borrowings increased to £37.6m (up from £32.1m). The group highlighted the fact that it has completed the re-financing of debt on a new four-year facility with Wells Fargo.

The company has a new long-term contract for fresh milk supply to Nestlé UK and Ireland, as well as a cheese supply partnership with Tesco and Ornua Foods.

First Milk’s new CEO Shelagh Hancock was appointed in April this year.