Nolan Seafoods posts £849,000 operating loss

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Scottish salmon and white fish processor says “decrease in the profits for the year is disappointing and this downturn in trading has continued into the first half of the year”.

The Aberdeen based company Nolan Seafoods posted its annual report ended March 31, 2019, to Companies House.

Turnover was down from GBP 22.1 million in 2018 to GBP 20.4 million last year. It posted an operating loss of GBP 849,000 (GBP 200,000 in 2018).

The UK seafood processor and distributor Nolan Seafoods sold 75% of its shares to International Fish Canner in 2017 and specialises in whitefish and salmon.

Nolan Seafoods wrote in its annual report that the “decrease in the profits for the year is disappointing and this downturn in trading has continued into the first half of the year.

“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,” it added.

Nolan Seafoods wrote that based on this, “with the continued support of the groups’ bankers, the directors are of the opinion that the company and the group has adequate working capital to execute its operations over the next 12 months”.

“We will continue to invest in the business to improve efficiencies and drive down costs where possible, to achieve a level of profitability that is commensurate with the scale of the business and the investment involved,” wrote Nolan Seafoods in its report, looking ahead.