LOCH Lomond Distillery Company, part of secretive tycoon Sandy Bulloch's spirits empire, has returned to the black after a steep fall in bulk whisky export prices slashed profits in 2002.

Revenues have fallen sharply, however, and the Alexandria-based firm must look to a recovery in overseas export markets to restore trading performance to 2001 levels, when profits stood at just under (pounds) 1m. In recent years, competition has intensified across the industry, and prices have softened most for those operating at the lower end of the market.

Loch Lomond claims to be the only distillery in Scotland that produces both grain and malt whisky on the same site. It distills the equivalent of 43 million

bottles of whisky every year, making it the country's second-largest family-owned distillery.

In the year to March 31, 2003, Loch Lomond posted a pre-tax profit of (pounds) 378,000, compared with a loss of (pounds) 87,000 in the previous year. This indicates only a modest improvement in performance, however, since the 2002 deficit incorporated a one-off charge of (pounds) 288,000 reflecting the fall in value of an investment property.

Sales fell in 2003, to (pounds) 9m, down from (pounds) 11m in the previous 12 months.