PETERHEAD-based Lunar Fishing Company has seen a downturn in profits and revenue following a reduction in its mackerel catching entitlement.

The company, owned by the Buchan family, cited the quota cut as pre-tax profits dropped to £9.6 million in the year to December 31, down from £14.6m.

Revenue was booked at £74.8m, compared with £85.9m in 2014, according to accounts newly available at Companies House.

Despite the reversal in profits and revenue, Lunar said it is well placed to meet the challenges presented by the quota system, which until the UK negotiates its exit from the EU will remain controlled by the Common Fisheries Policy.

Director Alexander Buchan said in the accounts: “The commercial environment in the market for pelagic fish continues to be buoyant and the group is well placed to take advantage of this having made substantial investment in both the catching and processing sectors of the industry.

“The white fish sector continues to experience difficulties with quota allocations but again the group, having made substantial investment, is well placed to meet the ongoing challenges facing this sector.”

According to the accounts, the company had net assets of £99.9m at year end, up from £95.9m at the end of 2014. It employed an average of 282 staff in 2015, compared with 276 the year prior, while staff costs rose to £12.1m from £11.5m.

Directors’ remuneration was cut to £303,183 from £349,225, with the highest-paid director receiving emoluments of £161,637, down from £185,359 the year before.

Lunar cited the impact of the quota system, governed by Europe’s Common Fisheries Policy, amid claims by industry body the Scottish Fishermen’s Federation that the UK’s forthcoming exit from the European Union brings the opportunity to reinvigorate coastal and island life and create a sustainable seafood industry.

In a paper prepared for MSPs before a Scottish parliamentary debate on Brexit earlier this month, the Federation said the UK’s withdrawal from the EU would allow the UK to assert control over its 200-mile Exclusive Economic Zone (EEZ). It said that means foreign vessels could then not enter that zone without consent.

Lunar Fishing Company declined to comment when contacted by The Herald.