Big leap in Grieg’s profits

SHETLAND’S largest salmon producer has reported a big jump in profits on the back of high market prices and improved fish mortality, the Herald reported today.
Grieg Seafood Hjaltland, which employs more than 200 staff across in 30-plus sites on the Islands, saw pre-tax profits leap to £5.2 million in 2014 from £148,161 the year before.
The firm said a turnaround plan commenced by management in early 2013 has ‘provided significant improvement both in terms of results and biological situation through 2014’,
Accounts newly filed at Companies House show that turnover at the Aberdeen registered company, owned by Norway’s Grieg Seafood, grew by more than one-third (35 per cent) to £81.6 million.
The producer noted that the ‘high market price achieved throughout most of the year’ allowed it to more than double operating profit to £7.8 million, up from £3.4 million in 2013.
Grieg reports in the accounts that since year end its subsidiary Hjaltland Seafarms changed its name to Grieg Seafood Shetland as part of a restructure.
That process also saw the activities of two fellow subsidiaries, Lerwick Fish Traders, the salmon harvesting, packing and processing company, and Hjaltland Hatcheries were taken into Grieg Seafood.
In July the company launched a new salmon hatchery at Girlsta, allowing it to supply itself with smolts or juvenile salmon.
Grief Seafoods said its priority in the current year is to complete the ongoing turnaround plan.
‘Costs still remain high and further measures have been identified and are being implemented to improve production and reduce costs in the future,’ it states in the accounts.