Cooke Scotland revenues higher, but profits take a knock

Cooke Scotland, which operates in Shetland and Orkney, saw sales of £226.3m last year, an increase of almost £10m on 2023’s figure.

Figures posted on the Companies House website show, however, that net profit dropped by 43% from £21.2m to £12m.

This, said the company, was mainly due to the drop in the gross margin of £9.3m resulting from the lower sales price being achieved. Net assets increased from £117.7m to £129.7m.

Volumes were up in the year, but this was offset by a drop in prices, after the record prices seen in the previous year.

The financial statement said: “The cost of sales increased by 11% to £187m in the year. This was largely driven by the increase in volumes sold, with costs fairly flat after the significant increases in previous years… the main movements on the Statement of Financial Position were the increase in stock and increase in the group and related party debtor which were largely offset by the increase in the group creditor.”

It added: “We have concluded the work with HMRC on their enquiries on the treatment of net pens capital expenditure for tax purposes across the salmon farming industry.

“Our treatment, in line with the rest of the industry, of these assets was found to be correct and appropriate for the assets in question. We are pleased to bring this matter to a close.”

Turning to principal risks and uncertainties, Cooke Scotland said: “The aquaculture industry continues to carry a significant level of risk, so the company was exposed to various operational and market-related risk factors.

“The supply of farmed seafood has increased steadily in recent decades, in line with demand, but of course there can be no guarantees that such demand will not reduce in the future.

“The company has developed a comprehensive framework for management of risk wherever it appears. The diligent application of these policies is key in view of the nature of the operational activities inherent in marine aquaculture.”