Grimsby's Northcoast Seafoods saw its profits fall last year after acquiring rival firm Ambassador Seafoods.
Operating profits at the frozen seafood supplier were slashed in half during the 2019 calendar year to just £1.5m, down from £3.2m during 2018.
It led to Northcoast's profit after tax falling from £1.7m to £165,545.
The company's directors said that the drop in profits was largely caused by its acquisition of Ambassador Seafoods, which it said was "underperforming".
Northcoast is already working on a turnaround plan for the business.
Speaking in the company's accounts, director Fridrik Thorsteinsson said: "2019 turnover reflected continued growth in the 海角视频 which increased year-on-year by 5% but was offset by declining sales in Northcoast Denmark.
"2019 also reflected the first full year of ownership of underperforming Ambassador Seafoods which is undergoing a turnaround project and as expected this acquisition has had a short-term adverse impact on 2019 profitability which is expected to be resolved in 2020 when the turnaround will be concluded."
Turnover at the Grimsby frozen seafood firm also fell during the year, from £147.1m to £146.4m.
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At the same time the company's cost of sales also increased by £600,000.
Northcoast also had nearly £400,000 of exceptional items added to its costs last year. The largest was a £250,000 write off of a bad debt. A similar write off was made in 2018 valued at £724,000.
Restructuring costs were also included in the company's accounts as an exceptional item. They amounted to £112,635.
Despite the decreased profits the total amount paid out to the company's four directors increased during the year, from £115,000 to £140,000.
As the accounts only run until the end of 2019 they do not include any impacts of the coronavirus pandemic. However, Mr Thorsteinsson did add that the 海角视频's exit from the European Union had also increased its costs during the year.
He said: "As with many food manufacturing businesses in the 海角视频 the uncertainty around Brexit dove increased storage costs and fluctuations in currency. "