Profit turns to loss for Nolan Seafoods

Fish Farmer - - Processing News -

NOLAN Seafoods, the Scot­tish sal­mon and white fish pro­ces­sor, saw its prof­its evaporate into a loss last year.

The Aberdeen based com­pany, now part of In­ter­na­tional Fish Can­ners (IFC), re­ported a post tax loss of £816,497 for the fi­nan­cial year ended March 31, 2019, com­pared to a profit of £167,189 in the pre­vi­ous pe­riod.

Nolan Seafoods em­ploys al­most 200 peo­ple and pro­cesses an ex­ten­sive range of farmed and wild caught fish, both fresh and frozen.

This in­cludes more than 50 tonnes of sal­mon fil­lets and 10 tonnes of sal­mon por­tions a year, along with a sub­stan­tial num­ber of cod and other white fish fil­lets.

Turnover was down from £22,165,000 mil­lion in 2018 to £20,475,000 last year. Al­most 75 per cent of sales (£14,835,000) go into Europe, with the re­main­der (£5,630,000) directed to UK cus­tomers. It was Euro­pean sales which took the big­gest hit this time, down by £1.7 mil­lion.

The com­pany de­scribed the loss of prof­its as ‘dis­ap­point­ing’ and ad­mit­ted that the down­turn had con­tin­ued into the first half of the cur­rent fi­nan­cial year.

But there was a fore­cast of a re­turn to profit dur­ing the sec­ond half, which ends on March 31.

The group’s strate­gic fi­nance re­port said: ‘Since the year end, the di­rec­tors have un­der­taken a strate­gic re­view of the com­pany and the group and fol­low­ing this ex­er­cise, price increases have been agreed with ma­jor cus­tomers.

‘Pro­duc­tion pro­cesses are also be­ing im­proved by the in­stal­la­tion of a new pro­duc­tion line and me­chan­i­cal fil­let­ing ma­chine.

‘Rev­enues from cold stor­age should also in­crease fol­low­ing in­vest­ment in new fa­cil­i­ties.

Fol­low­ing these moves, prof­its will in­crease in the sec­ond half of the year.’

The re­port also said there was ad­e­quate work­ing cap­i­tal to carry out its op­er­a­tions over the next 12 months. Founded in 2002, Nolan be­came part of IFC in the au­tumn of 2017.

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