One of Kent’s fastest-growing exporters saw its margins squeezed as it tried to be more competitive in foreign markets.

Clock and jewellery box maker LC Designs, which is behind the London Clock Company brand, managed to increase turnover by 4.8% to £8.8 million last year, with exporting accounting for almost £1.2 million, up from a little over £1 million.

However, its gross profit margin was squeezed slightly to 37.6% last year, compared with 38.6%, according to its latest accounts filed with Companies House.

As a result, its operating profit suffered an £8,000 drop, falling from £20,401 to £12,130 last year, even though gross profit increased to £3.31 million from £3.24 million.

It meant the company’s bottom line slipped to £4,855, down from £11,698, in the year to the end of March 2015.

“The company operates in an environment which is extremely price-sensitive..." - Kevin Pestell, LC Designs

It comes after the firm, based in Larkfield, near Aylesford, was named the second-fastest-growing exporter in Kent in the latest MegaGrowth 50 list, with a 781.3% increase in overseas turnover over four years.

Director Kevin Pestell said: “The company operates in an environment which is extremely price-sensitive.

“Accordingly, the company constantly invests in producing original products at prices to deliver the desired margin requirements of their customers.

“This decrease in margin in the current year has been driven by a lower margin in the export business.”

LC Designs, which employs about 50 people, also makes jewellery boxes under the Stackers, Dulwich Designs, button it and Vicci brands.

It was established in 1922 as the London Clock Company and moved into new markets after changing its name in 2000.

At the year end the company had almost £4.5 million in the bank, with assets of £6.9 million.

Director Kevin Pestell said: “The directors anticipate the challenging retail trading environment will continue for the foreseeable future and therefore consider it prudent to retain cash within the business.”