Young’s Seafood has reported an operating profit of £5.6 million in an extended accounting period following its buy-out by Karro Food Group.
Turnover hit £815 million for the 18 month period, retaining sales of just over £10 million a week as per 2018 for the Grimsby giant.
However, a loss of £10.1 million was recorded overall, with a £5.2 million sale bill and £7.2 million cost attached to the closure of a major Scottish plant.
Director Michael Kestemont, covering off the period ending late March 2020 in his strategic report, filed earlier this month and just published, told how business performance had improved post transaction, with “significant operational improvement across the company delivering value to both the company and its customers”.
Acquisitions are being eyed by the directors as greater economies of scale and market share are sought.
As well as its eponymous brand, Young’s provides white label seafood products to major retailers and some food service clients, from a cluster of factories concentrated in the home town.
The focus around its iconic Ross House HQ had been enhanced with the closure of the Pinneys site in Annan, Scotland, with elements of the business transferred to Grimsby.
Mr Kestemont, who was joined by former Seachill head Simon Smith following the buy-out, said: “Young’s Seafood Ltd is well placed to deal with the competitive pressures that characterise the 海角视频 seafood industry and is preparing for significant further growth in years to come.”
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Outlining forecasted further improvement in profitability through sales growth and operational efficiencies, he said: “The company is confident that this further growth will be sustainable as revenue growth is being driven by significant long-term and strategic partnership agreements with a number of customers that are built on strong economic foundation and create long term value for both the company and its customers.
“The company continues to invest further in internal capital projects to strengthen its performance going forward. In addition to this, the directors are continuing to review new opportunities to acquire businesses which will offer volume and synergy benefits in years to come.”
The buy-out of Young’s, completed in July 2019, saw Young’s Seafood become part of a new Eight Fifty Food Group entity, with reference to nautical miles and farming measures to reflect the seafood and meat elements.