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UK processor slips further into the red

Five Star Fish puts poor results down to fall in turnover, change in sales mix and prevailing economic conditions.

Related contentUnited Kingdom-based secondary whitefish processor Five Star Fish slipped further into the red in 2015, driven by lower turnover, it said.

The Boparan Holdings-owned subsidiary posted a loss attributable to shareholders of £3.3 million (€4.2 million/$4.8 million) for the year ending August 1, compared with loss of £2.4 million (€3 million/$3.5 million) in 2014.

Turnover amounted to £53.2 million (€67.6 million/$77.2 million) down from £53.9 million (€68.5 million/$78.2 million) in 2014.

In its latest accounts published on Companies House, Five Star Fish said this 1.4 percent drop was primarily down to the additional week in the prior financial period.

Gross profit margin and operating profit both decreased in the period primarily as a result in the fall in turnover, change in sales mix and the prevailing economic conditions, it said.

The company made an operating loss of £4 million (€5.1 million/$5.8 million) in 2015, compared with an operating loss of £2.3 million (€2.9 million/$3.3 million) in 2014 – down 74 percent year on year.

The main risks facing the company are raw material price inflation and availability, as well as changing customer demand pattern, said the company.

“The weakening economic environment has resulted in a change in consumer eating habits,” it said.

The company manages this risk by diversification of its customer base between retail and foodservice outlets.”

Five Star Fish said it was struck by increasing raw material and utilities costs, and the inability to pass this increase on to customers.

Cost of sales increased to £53 million (€67.3 million/$76.9 million) from £51.9 million (€65.9 million/$75.3 million), with gross profit amounting to just £122,000 (€154,953/$177,061), down from £2 million (€2.5 million/$2.9 million) a year earlier.