UK seafood processor Young’s Seafood reported strong results for the fiscal year 2018, with an increase in earnings and sales due to several contract wins in the frozen seafood sector, and new listings for chilled products.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) went up 16 percent in the 12 months through Sept. 2018, to a total £23 million (€24.8 million/$27.8 million).
Sales over the period amounted to £545.9 million (€589.6 million/$659.9 million), up 4.3 percent year-on-year.
“The frozen sales increase resulted from growth in the brand in the UK and export markets and from a number of own label contract wins,” the firm’s board said in the financial report.
“The increase in chilled sales reflected strong customer activity and new listings as well as market growth.”
During the year, the group closed and sold its Pinney’s processing plant. In addition, the group’s parent company Lighthouse was sold to Element UK BIDCO in 2018.
In 2019, Young’s was sold to UK pork processor Karro, fully owned by private equity group CapVest.
“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,” said Di Walker, CEO of Karro Food Group.
In June this year, Young’s Seafood announced it was appointing former UK seafood processor Seachill’s Simon Smith as the group’s CEO as it confirmed Bill Showalter, who was CEO of Young's since January 2017, was stepping down.
The company warned of a number of risks for the company: its customers and its suppliers from a no-deal Brexit including labor availability, imports at the ports subjected to new duties and tariffs, exchange rates and inflationary pressures.
However, it said there will be no material long-term adverse impact of Brexit on the business.