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The confectioner, Lees Foods, has increased profits by 6% despite the rising cost of raw ingredients.

The company made £1.09m last year with sales up 8.9% to £20m although margins were squeezed by "significantly higher input prices".

Lees said that this year it faced costs increases on the key ingredients of eggs and sugar.

The firm said it was "vitally important" that it introduced new products at "improved margin levels".

The Coatbridge company said this would make sure that it continued its "profitable growth".

Lees said it had successfully mitigated against rising costs by becoming more efficient and cutting back on packaging.

Lees Foods is the owner of Glasgow-based Waverley Bakery, which makes a range of wafer products under the Carousel brand.

It also owns Lees of Scotland, which makes teacakes, meringues and seasonal biscuits from a factory in Coatbridge.

Last month, the directors of the company launched a £5.6m buyout bid for the firm.

The bid of 230p a share is expected to win the backing of shareholders over the next few weeks.