Grimsby’s second largest seafood business saw sales soften slightly from a lockdown boost as UK consumers’ reliance on supermarkets for fish fell away.
Seachill UK, which now trades as Hilton Seafood UK following a 2017 acquisition, turned over £330.6 million in 2021, down from the heightened £346 million achieved through the pandemic. It dropped marginally below the pre-Covid year’s sales of £332.4 million.
The leading supplier to Tesco and other major retailers, saw operating profit fall from £10.6 million to £8 million.
Read more: Grimsby welcomes regular frozen at sea pelagic catch
Snapped up by FTSE-listed red-meat specialist Hilton as it embarked on a major diversification strategy, the parent company has since reported “unprecedented pressures on seafood” in 2022. The company is one of several seeing a huge squeeze on margins due to inflationary impacts driven by energy costs.
Seachill is behind two substantial plants in Grimsby, while also adding Dutch operations in the past year. It has however, recently closed a celebrated traditional smokehouse in Riby Street. Nine jobs were absorbed at the other town locations.
November saw profit forecasts reeled in by the Huntingdon-headquartered company, having generated revenues of £3.3 billion in 2021, with a pre-tax profit of £67.2 million. It said volumes and revenues were on track, however.
Full results are anticipated next month.
In the strategic report accompanying the Seachill results, director Matthew Osborne said: “The company continues to supply the major UK-based retail customers with a broad variety of private label fish and seafood products.
“Sales in the period reduced by 4.5 per cent year on year to £330.6 million following the Covid lockdown boost in the corresponding period.
“The business continues to innovate and invest in the future. New technology has been invested in both infrastructure and processing, which will enable the business to continue to take a lead on the efficient manufacturing of seafood products.”
The South Humberside Industrial Estate plant has seen a huge expansion with automated colstore and new offices, as well as production improvements on the factory floor.
On Riby Street, Russells closed last month, with Hilton understood to have conducted a review, looking at the most efficient ways of meeting customer needs. It followed a decision by Tesco to close all remaining wet fish counters, having culled many through the pandemic.
A decade ago Russells had been the star of a Tesco Finest national television advertising campaign, which also featured Blundell Park and the Dock Tower. It is now on the market with PPH Commercial, and comes hard on the heels of neighbouring Cook and Lucas' closure after it stopped trading abruptly and was placed into administration.
Read next:
£16m loss for Iceland Seafood in 2022 - but positive cash flow eyed in coming months
Fish vans on the road to a cleaner future as pilot to supercharge seafood launches
Seafood cluster lands £250,000 to help ease acute skills shortage and net future leaders
Huge coldstore logistics deal completes
All your Humber business news in one place - bookmark it now
