MOSCOW: Russia’s ban on food imports from the European Union has been highlighted as losses increased by more than £1 million at Shetland Catch, the fish processing giant. The Lerwick-based firm declared the ban, effected by Russia in response to sanctions imposed by the EU after the Ukraine conflict, was one of the main challenges facing the mackerel market during its most recent financial year.
The latest accounts for Shetland Catch, believed to run the largest pelagic fish factory in Europe, show that losses at the company grew to £1.7m in the year ended March 31. That came as it the felt the effects of the Russian import ban in addition to booking a range of exceptional maintenance costs. The company had booked a pre-tax loss of £583,013 the year before. Profits fell as Shetland Catch, which is supplied with mackerel, herring, blue whiting and horse mackerel by the Shetland pelagic fleet, saw turnover tumble to £34.6m from £45.9m. “The challenges faced in the mackerel market remain in place, particularly with the Russian import ban proving to impact on the bottom line this year.” the company said in accounts newly available at Companies House. “The company has also incurred a series of one off maintenance costs that have also impacted on the annual result.”
The directors signalled that the company has achieved good sales in other European markets to help offset the loss of the Russian market. But it noted that these markets are “slower moving”, which has meant that stock levels were much higher at year-end compared with the previous accounts. The company’s balance sheet put the value of stocks at £15.7m, up from £7.4m at the end of the year prior. “Despite the difficulties in the mackerel market, without opportunities in Russia, the sales team have generated good levels of trade in other European markets,” the directors explained. “However, these markets are slower moving and have led to the increased stock levels at the end of the financial year that we see in the accounts, again impacting on the loss for the year end.
