Highland Spring plans to expand its production facilities following last year's sales growth.

The Perthshire-based company said yesterday (8 October) that it will spend GBP3m (US$6m) adding new production facilities "to help meet future demand and upgrade existing bottling lines" after sales grew by 5% last year.

Highland Spring marketing director Sally Stanley said: "The substantial increase in turnover and profit is the result of our continued commitment to grow the brand ahead of the market and continued investment for future success. An exceptionally warm summer in 2006 coupled with successful sales and marketing activities also contributed towards the results."

Last year, pre-tax profits rose 28% to GBP4.1m compared to the previous year's result. Turnover increased to a record GBP54.2m in the 12 months to December, compared to GBP51.6m for the same time the previous year. Volume sales of the brand rose 12% to 179m litres, the company said.

Stanley added: "Despite bad weather this summer, we are still growing ahead of the market quite considerably, at 1.5% versus a market decline of 3.3% in total take home."

 In August, the company launched its new variant, Highland Spring for Kids, a bottled water targeted at children.