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Villa Seafood slips into the red in 2016

Turnover on the other hand jumped 28.7% year-on-year. 

Alesund-based Villa Seafood reported a loss for the financial year of 2016, despite a significant increase in its full-year turnover.

"Villa Seafood shows strong growth in revenue from 2015 to 2016," the board wrote in the annual report. "However, one-off events resulted in an operating loss and an annual deficit for 2016."

The operating loss amounted to NOK 5.9 million (€632,114/$741,984), down from a profit of NOK 1.8 million (€192,848/$226,368) in the previous year.

Turnover on the other hand jumped nearly 29 percent year-on-year from NOK 318.5 million (€34.1 million/$40.1 million) to NOK 409.8 million (€43.9 million/$51.5 million).

The main reason for the weak result was a loss on a receivables, the board said.

Operations were also impacted by the high salmon prices and high costs associated with the introduction of a new fillet line.

Villa Seafood sells various salmon and cod products to customers in Norway and abroad.

The accounts show the company incurred losses on trade receivables of NOK 2.9 million (€310,700/$364,704) in 2016, compared to NOK 0.5 million (€53,569/$62,880) the previous year. At year-end, the company had receivables amounting to NOK 32.9 million (€3.5 million/$4.1 million).

It had a total balance of NOK 54.8 million (€5.9 million/$6.9 million). The largest asset was receivables, recorded to NOK 41.7 million (€4.5 million/$5.2 million).

On the liability side of the balance sheet, the company has equity of NOK 7.2 million (€771,394/$905,472) and short-term debt of NOK 47.6 million (€5.1 million/$6 million) (mainly trade debtors). The company had no long-term debt.

Ove Thu is the general manager and chairman of the board. He is also the largest owner and indirectly owns almost 80 percent of the company.

Villa Seafood financial results, figures in million NOK

2016 2015 YOY Change
Turnover 409.8 318.5 28.7%
Operating profit -5.9 1.8 -
Result before tax -6.4 0.9 -
Net profit -4.8 0.7 -
Operating margin -1.4% 0.6% -

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