Young's Seafood, Grimsby, England, part of the Findus Group, posted an annual loss of £26.9million last year, blaming low consumer confidence and extra competition. The company had made £495,000 pre-tax surplus the year before.
The firm said it had made inroads into reducing operating costs by improving sourcing and cutting manufacturing waste, saving £16million. But it added that these were not enough to offset the impact of under-recovered cost inflation and profits plunged.
"Consumers in the UK market remain cautious. While the UK retail seafood market grew modestly in value versus 2010, volume declined," the company's report said, adding that historic long-term growth rates being hit by low consumer confidence and fiercer competition. Several "low-margin" contracts also came to an end.
Despite the lower volume in 2011, Young's said it increased turnover by more than £100 million to £457.7 million as a result of trade acquired from other Findus Group businesses. In 2011, the parent's UK operations -- Young's Seafood, the Seafood Company and Findus UK -- were merged to form Young's Seafood.
Findus Group - controlled by investors including Lion Capital, Highbridge, JP Morgan, Capvest and Northwestern Mutual -- recently completed a refinancing and received £150 million from shareholders, which has been largely used to reduce group and bank debt.
