Potential for future growth and a demonstration of the continued market leadership are what the new owner of Young’s Seafood has taken from robust operational results for 2018.
The Grimsby giant delivered 4.3 per cent growth in turnover in the last financial year, with earnings up 16 per cent.
Young’s, recently acquired by Karro Food Group , under the ownership of former Ross House stakeholder CapVest Partners LLP, saw sales of £545.9 million, compared to £523.3 million for the year to September 2017.
EBITDA was up from £19.8 million to £23 million.
Historic debts have been a long-standing financial issue, but the operational success is clawing back a strong overall position, with losses down to £8 million from more than £39 million last year.
Di Walker, chief executive of Karro Food Group, told how good progress was already being made since July’s deal.
She said: “The 2018 results for Young’s Seafood demonstrate the company’s continued market leadership in seafood and potential for future growth. “Bringing restaurant quality fish into new categories, Young’s delivers the best quality own-label service to retailers.
"With a good foundation for growth and new ownership in place, Young’s Seafood is progressing well with the first phase of transition, achieving export growth and new contract wins since the time of these accounts.
“As we drive forward with our plans for the Group, we are very excited about creating an ambitious multi-protein food business, further developing and broadening our relationships with our key partners.”
Operating profits before exceptional items and goodwill amortisation of £11.5 million was also reported, up on £8.4 million.
Growth across all key sectors – frozen, chilled, brand and retailer-branded fish and seafood – was revealed. The frozen sales increase resulted from growth in the company’s market-leading brand in the UK and export markets, and from a number of own label contract wins.
Sales of £4 million were recorded for the US - where it launched during the year - with £5.7 million in the rest of Europe.
The increase in chilled sales reflected strong customer activity and new listings as well as market growth.
The deal has come in the new financial year, with chief executive Bill Showalter having just left the company, following the completion.
Seachill’s head, Simon Smith , is to replace him, and will join the business later this year.
Malton-based Karro, a pork specialist, together with Young’s now generates sales of £1.2 billion and will employ more than 5,000 people across the UK and Ireland.
The report also revealed the cost of the closure of Pinneys in Annan, Scotland, with Young's reporting £7.7 million on redundancy payments and £2.7 million on the transfer of operations to Grimsby. Headcount dropped from 2,413 to 2,380 during the year, but is understood to have increased again since.
