Salmon farmer says that trading has remained steady. But looking ahead, it expects 10-15 per-cent reduction in trading and cash flow because of COVID-19.
On Tuesday, Cooke Aquaculture Scotland posted its full-year results on Companies House for the year ended 31st December 2019. The salmon farmer had a turnover of GBP 169.3 million, an increase compared to GBP 151 million the year before.
Operating profit was down from 2018’s GBP 50 million to GBP 42.2 million in 2019.
“We have been fortunate that after an initial slump our main markets have proven to be robust and trading has remained steady, albeit at a lower level than otherwise would otherwise been expected,” wrote the Cooke Inc subsidiary referring to this year’s trading.
It said that it expected there to be some reduction in cash flow over the next 12 months until such time as the hospitality sector fully recovers, and the demand for salmon returns to the levels prior to COVID-19.
“In recent months we have experienced increased distribution costs, particularly in relation to air freight which is currently not supported by volume passenger travel which previously diluted these costs,” it added.
Looking ahead, it expects that trading and cashflow will “reduce by 10-15 per-cent of normally expected levels”, however this still results in a “viable and cash generative business”.