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Morrisons seafood processor's profit skyrockets on new business model

During the period, the group changed the way it manages its manufacturing business, moving to a cost center model.

International Seafoods Limited, saw its profit more than double in its latest financial year ending Feb. 4, 2018.

During the period, the company, a subsidiary of UK retailer Morrisons, changed the way it manages its manufacturing business, moving to a cost-center model.

Goods sold between the manufacturing and retail operations are now transferred at cost plus a standard margin.

“This change better reflects the way the business is now operated,” the company said.

“The impact of this change resulted in lower sales and different profit margins in the current period than under the previous agreement.”

Sales increased 12 percent in the period, as the impact of the change in transfer pricing has been more than offset by additional capacity from a second site opened in the prior year.

In the year ending Feb 4, 2018, revenues amounted to £157.5 million (€180.4 million/$206 million) up from £140.3 million (€160.7 million/$183.5 million) in the year prior.

Operating profit was £4 million (€4.6 million/$5.2 million) up from £1.4 million (€1.6 million/$1.8 million) in the year prior – up 186 percent.

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