Scotland-based Associated Seafoods reported higher revenue and gross profit for the year ending 31 October 2023, but higher costs led the company to post losses pre- and post-tax.
The company posted revenues of GBP 105.9 million (USD 136.1 million, EUR 124 million) in FY2023, up from GBP 81.5 million (USD 104.7 million, EUR 95.4 million) in FY2022. The company’s gross profit also increased, reaching GBP 14.9 million (USD 19.2 million, EUR 17.4 million), up from GBP 10.7 million (USD 13.7 million, EUR 12.5 million).
Despite the increases in FY2023, the company still posted an operating loss of GBP 168,000 (USD 216,000, EUR 196,500), marking a slight improvement from the loss of GBP 612,000 (USD 787,000, EUR 716,000) it posted in FY2022. Including other costs related to interest, the company’s loss before tax reached GBP 1.02 million (USD 1.31 million, EUR 1.19 million), a minor improvement from the loss of GBP 1.03 million (USD 1.32 million, EUR 1.2 million) loss before tax it posted in FY2022.
The company’s cost of sales, administrative expenses, and interest all increased for the year. Cost of sales increased in FY2023 by over GBP 20 million (USD 25 million, EUR 23 million), reaching GBP 90.9 million (USD 116.9 million, EUR 106.3 million) from GBP 70.8 million (USD 91.1 million, EUR 82.8 million) in FY2022.
Associated Seafoods’ financial results now include the results of Loch Fyne Oysters, which it acquired on 1 March 2023 via a share-for-share exchange with Scottish Seafoods Investments. It also includes the Arbroath factory, which Associated Seafoods acquired from R.R. Spink & Sons in March 2022. Those results increased the overall revenue reported by the company by 30 percent, Associated Seafoods said.
“The turnaround of the Arbroath business continues and is a major focus,” the company said.
Associated Seafoods said that the acquisition of Loch Fyne Oysters has added more new products to the group and that the company is in the process of “turning this business around” in an ongoing process.
“We continue to realize economies of scale and work to return the company to profitability,” Associated Seafoods said, adding that a combination of factors, including high raw material prices, inflationary pressures, and market conditions, continued to impact the group in 2023.
“While the group has sought to pass costs on where appropriate to customers, this has still resulted in a squeeze on margins through 2024,” the company said. “Nevertheless, the group continues to manage its working capital and cash flow closely to ensure it maintains sufficient financial resources at all times.”
