Loch Duart's profit plunges after big investment in growth
The Scottish salmon farmer and processor invested in infrastructure and operational capacity during the year.
Loch Duart, a salmon farmer and processor, reported a significant drop in net profit for its latest financial year after investing heavily in infrastructure and operating capacity, in part to adapt to rising water temperatures off the coast of Scotland.
The company said it had anticipated the 80 percent decline in profit for the year ended March 31, which it attributed to its investment in future growth. Net profit for the year was £710,457 (€829,116/$903,290) compared with £3.4 million (€4.0 million/$4.3 million) a year earlier.
“The company continues to work on increasing production through new sites and to develop the potential of existing sites," Loch Duart said in accounts filed with UK business registry Companies House.
Turnover fell 18 percent to £43.0 million (€50.2 million/$54.7 million) and operating profit dropped 72 percent to £1.3 million (€1.5 million/$1.7 million) for the year.
In Scotland, Loch Duart said its focus during the year was on addressing the increasing biological challenges created by rising water temperatures. Additionally, it said it was exploring the potential for restarting operations in Canada, where the company still owns licenses.
The following year, however, the Canadian government rejected the company's application for the expansion.
Loch Duart, which produces around 6,000 metric tons a year at its farms in the Sutherland and Outer Hebrides regions of northwest Scotland, is owned by US investment company Vision Ridge Partners. The company supplies whole gutted fish to trade outlets in a variety of countries.