Grimsby seafood firm Northcoast saw UK sales and operating profit increase strongly ahead of its spring buy-out.
The retail-focused manufacturer enjoyed a seven per cent lift in domestic activity, having also sold off a Danish subsidiary in 2020, with earnings up from £2.7 million to £3.5 million. Japanese-backed Dutch operation Seafood Connection swooped for the 22-year-old business in May.
Founder Fridrik Thorsteinsson, who was diagnosed with a rare brain condition last year, grew the business from a tiny North Atlantic prawn trading operation, based on his academic background and entrepreneurial flair. It went on to acquire Ambassador Seafoods of Stallingborough, moving that and the Europarc office set up to substantial premises on South Humberside Industrial Estate in his adopted home town.
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The calendar aligned financial year of 2021 saw an overall turnover drop of 18 per cent, from £148.1 million to £121.4 million, but UK sales increased from £112.5 million to £115.5 million.
In the strategic report accompanying the results, Adrian Crookes, managing director, said: “2021 turnover reflected the continued growth from both new and existing customers in the UK, despite decreased turnover year on year at group level due to the disposal of a subsidiary. As a company, turnover increased year on year by seven per cent and it was pleasing to see operating profit improve year on year by 27 per cent.
“We successfully concluded the turnaround of the manufacturing side of the business which included the investment in new equipment to support our sales growth.
Increased freight charges were described as a major challenge for Northcoast and the seafood sector in general that are “expected to continue,” with Brexit and Covid-related challenges leading to a reduced supply of agency labour.
It “led to a more creative approach to our working shift patterns and an increase in our permanent headcount in order to overcome the issue and support our increased sales,” Mr Crookes said, with numbers up from 112 to 137 on Estate Road One.
He added: “Northcoast Seafoods continues to adapt to challenging trading conditions and expects to continue to enhance its position within the seafood sector in 2022.”
Seafood Connection is part of the Maruha Nichiro group. At the time of the transaction, Mr Thorsteinsson said he was “proud and happy to join the largest seafood business in the world” underlining his confidence that the new relationship would strengthen the UK business. He had previously bought out his long-term Danish backers.
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