Seafood producer hit by ‘disappointingly high’ full-year loss

RR Spink confident that repositioning will provide longterm benefits

A major Scottish seafood producer, which recently completed a multimillion-pound investment in its Angus fish processing facility, has racked up another seven-figure annual loss.

New documents filed at Companies House show RR Spink & Sons’ parent group, Dawnfresh Holdings, reported a £7.74 million loss for the year to March 26, despite significantly improved sales.

The outcome represented an improvement on the £8.11m loss of the prior year, but in his directors’ report group chairman Alastair Salvesen – one of Scotland’s pre-eminent businessmen – described the losses for the year as “disappointingly high”.

Mr Salvesen said it had been a year of transformation for the Uddingstonbased business following the group’s decision in January 2016 to reposition itself to focus entirely on chilled seafood processing and trout farming.

The company – which welcomed the Princess Royal to officially open the £3.1m extension of the Spink facility in Arbroath in July – saw turnover move more than £5m ahead to £65.49m.

It said underlying growth after stripping out revenues derived from frozen sales in the prior year was 21.7% up and “careful management of both customer and product mix” had resulted in improved margins.

Despite the bottom line loss, Mr Salvesen said he and the directors were confident of delivering a “more positive result in the coming financial years”.

He said the directors were satisfied with progress made in improving the company’s key performance indicators including turnover and gross profit – which lifted from £1.47m to £2.75m in the year.

“The directors consider that by continued focus on growing both its chilled seafood processing and fish farming businesses, it will further enhance the reputation of the Dawnfresh Group with its customers and suppliers, and provide accelerated future growth and prosperity for the group and its employees,” Mr Salvesen said.

“During the coming financial year the group will continue to review how it can best invest to make both its farming and processing businesses work more efficiently.”

The accounts state the group – which employed an average of 600 staff last year – remains “financially secure” with shareholders having subscribed for a further £4.5m in preference shares during the year.

“During the coming financial year the group will continue to review how it can best invest to make both its farming and processing businesses work more efficiently. ALASTAIR SALVESEN

Picture: Alan McCredie Photography. The Princess Royal takes a tour of the RR Spink & Sons plant in Arbroath in July following completion of a £3.1 million investment.