LOCH Fyne Oysters has narrowed pre-tax losses to £709,278, but sand deposits at its Morecambe Bay Oysters subsidiary led it to contribute a “significant” loss to the consolidated results.
Turnover at the group increased by three per cent to £14 million and while the loss was an improvement on the £934,143 last year, the group said it had been a “mixed year”.
Sales in the UK were £9.6m, with £2.7m to Europe and £1.3m to the Far East.
Accounts newly filed at Companies House show that Loch Fyne Oysters in its sole capacity turned over £13.9m in the year to October 31, and made a pre-tax loss of £333,000, an improvement from £790,000.
Encouragingly, earnings before interest, tax, depreciation and amortisation (EBITDA), returned to positive territory, at £180,000, after an £80,000 loss the previous year.
Directors said it was a year of consolidation and progress, which included the launch of new products, and preparations to establish regular trade to China and the US.
At Morecombe Bay Oysters, pre-tax losses were £330,000 on revenue of £260,000. The farm suffered from severe ingress of sand deposits, which resulted in significant losses of marketable stock, the directors said.
Additional costs were incurred in managing this situation, while there was difficulty hatching seed oysters, meaning there was insufficient stock to make any seed sales.
In spite of the problems at Morecombe Bay, the directors said they were optimistic about the current year.
A double digit sales increase is expected at Loch Fyne, while at Morecombe Bay, directors said they were altering the farm layout to improve flow and output, which would reap benefits from 2018.
Since the end of the period, investors have converted £700,000 of debt to equity.
“With their continued support, the group has the ability and capacity for growth,” wrote the board.
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