Grimsby-based processor Flatfish saw its profit drop in the financial year through Oct. 1, in light of “uncertainty on the supply side” due to the Icelandic fishermen’s strike early in the year and the devaluation of the UK currency after the Brexit vote.

The company reported a net profit of £153,460 (€176,843/$108,069), down 46 percent from the £284,823 (€328,221/$200,577) it netted a year earlier.

Operating profit dropped 30.5 percent year-on-year from £417,573 (€481,199/$294,061) to £417,573 (€481,199/$294,061), despite a 5 percent rise in turnover from £12.1 million (€13.9 million/$8.5 million) to £12.7 million (€14.6 million/$8.9 million).

Steve Stansfield, founder and managing director at Flatfish, wrote in the company’s annual report the financial performance reflects both the challenging trading environment it is operating in as well as “our commitment to supporting our customers by absorbing raw material price inflation where possible by way of increased processing efficiencies and stringent controls on overhead.”

Stansfield said the uncertainty Brexit has created continues as the impact on fisheries management, trade tariffs and ongoing EU fishing regulations has yet to be determined.

“As growth in the economy is predicted to slow as a result of pressure on disposable incomes, sales growth is likely to depend on new product development, and the ability of the company to provide a point of difference in an extremely competitive market,” he said.

The continued consolidation within the industry, in particular the “influx of foreign investment coupled with the number of short-term supply contracts, continues to create problems with the development of long-term supply strategies,” Stansfield added.