Independent Scottish salmon farmer Loch Duart has reported a significant decline in profits for the year ending 31 March 2024, a result the company attributes to the costs associated with its ongoing growth strategy.
Turnover for the company fell by 18% to £43.08 million, down from £52.5 million the previous year. Operating profit dropped by 72% to £1.29 million from £4.67 million in 2023.
The company’s accounting profit also declined to £710,457, compared with £3.39 million the previous year. Loch Duart’s annual report noted that this decrease was expected as part of its plans to restructure sites to support future expansion.
Interest expenses rose to £284,585 from £157,944 in 2023. However, the company’s net assets increased from £38.3 million in 2023 to £46.7 million this year.
The company’s directors emphasized that the focus during the year was on addressing biological challenges caused by rising water temperatures. Loch Duart’s farming approach, particularly its smaller farm sizes, allows for less intensive solutions that reduce strain on the fish.
The company, which produces approximately 6,000 tons of fish annually from its sites in Sutherland and the Hebrides, also made significant investments in infrastructure and operational capacity, both during the year and following the year-end, as part of its efforts to increase production through new and existing sites.
Despite these expansions, the company reduced its workforce, with the average monthly number of employees, including directors, falling to 167 from 178 the previous year.
Loch Duart, owned by the sustainability-focused United States investment fund SAF II Master Fund, LP, also reported a reduction in total energy consumption, from 6.48 million kWh in 2022-23 to 5.3 million kWh last year.
In addition to its growth in Scotland, Loch Duart is exploring the possibility of reopening operations in Canada. The company had previously planned to establish three salmon farming sites in Canada over a decade ago, but these proposals were blocked by the Canadian government.
