SOLID sales growth and the capture of important new contracts helped give Young’s Seafood an impressive increase in turnover and gross profits last year.
The company reported turnover of £545.9 million for the financial year ended September 30, 2018, a rise of 4.3 per cent, and an EBITDA (earnings before interest, tax, depreciation and amortisation) of £23 million.
Earnings have now grown by 13.3 per cent year on year, along with a strong operational cash management. EBITDA margins provide investors with a snapshot of short-term operational efficiency.
Last year, the company controversially closed its salmon plant Pinneys in Annan, Scotland, with the loss of 450 jobs. And earlier this month, it announced it was cutting up to 50 jobs at its Macrae site in Livingston, near Edinburgh.
CEO Bill Showalter said: ‘Sales growth, contract wins and cost saving initiatives have resulted in significant EBITDA growth for our business this year.
‘Young’s Seafood has a strong track record of operational success and remains the UK’s clear market leader in both chilled and frozen fish and seafood.
‘Our fourth quarter saw continued turnover growth, with solid EBITDA, building on the traction through the year. Frozen sales have returned to the long-term trend of year on year growth, while cost reduction programmes have underpinned our sales performance.’
He added: ‘During the year, we also achieved net leverage improvements and finished the year with £19.4 million cash in the bank.
‘Our exports programme has maintained year on year growth, up 180 per cent on quarter four last year, demonstrating the popularity, demand and potential for further growth of our brand in other markets.’
There was, however, no mention of the current position over progress or otherwise on the sale of the company, which was announced in April last year.
Picture: Young’s CEO Bill Showalter