THE LARGEST farmed salmon producer in the Shetland Islands has suffered a £14.4 million operating loss in part because of algae damage led to loss of stocks and high treatment expenses.
Grieg Seafood Shetland also booked a £3.5m impairment charge following the closure of its smokehouse and filleting plant.
Accounts newly filed at Companies House show the loss for 2015 equates to 88p per kilogram, and marks a sharp reversal from a £10.6m operating profit in 2014. Total harvest volume was down 2,861 tonnes to 16,370 tonnes.
High output prices were cited by the company as the most significant factor for its weak performance, while the relative strength of sterling in 2015 tightened margins.
In its strategic report, the directors revealed that parent company Grieg Seafood received multiple offers to acquire the business, which it considered before deciding the offers “did not reflect the improvements that are being realised in the region”.
It added that it was continuing to explore other strategic alternatives, noting that there was “considerable potential for biological and operational synergies to be achieved from greater co-ordination between the parties in the region”.
A new hatchery was completed in 2015, which the company said would improve production significantly.
The directors added that operation have improved since the end of the reporting period, with a reduction in costs and improved production.
Grieg has 175 employees, working across 30 sites.
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