Market – May 21, 2024
Grimsby processor on brink of insolvency with £1.2 million debt says report
Administrator’s report indicates that Grimsby processor Saltire Salmon owes £1,193,177 and is likely to enter insolvency proceedings.
The administrators of UK distributor Seafood Products Limited (SFP) have disclosed that Saltire Salmon Limited, a fish processing facility in Grimsby, is facing significant financial difficulties.
Seafood Products Limited entered into administration in March following the loss of a major Costco contract and three shipments to a company in the US, resulting in an unpaid debt of $662,882.
Historically, SFP operated from offices in Farnham, Surrey, and until recently, utilized Saltire Salmon Limited’s facilities in Grimsby for fish processing. This arrangement was supported by an invoice financing facility provided by SFP’s shareholder, Norwegian exporter Ocean Supreme.
Worrying trends
Micro accounts filed by Saltire Salmon with Companies House in May 2023 show some worrying trends, which have only been confirmed by the Seafood Products Limited report.
| Description | 2022 (£) | 2021 (£) |
|---|---|---|
| Fixed assets | 43,562 | 58,021 |
| Current assets | 179,165 | 110,795 |
| Prepayments and accrued income | 14,565 | 7,452 |
| Creditors: amounts falling due within one year | (850,688) | (567,814) |
| Net current liabilities | (656,958) | (449,567) |
| Total assets less current liabilities | (613,396) | (391,546) |
| Accruals and deferred income | (10,194) | (8,631) |
| Net liabilities | (623,590) | (400,177) |
| Capital and reserves | (623,590) | (400,177) |
The accounts filed by Saltire Salmon in 2023, before the collapse of SFP, show a significant rise in creditors due within one year. The company’s short-term liabilities increased from £567,814 in 2021 to £850,688 in 2022.
The escalation in short-term liabilities led to increased net current liabilities, from £449,567 to £656,958, and subsequently, total net liabilities rose from £400,177 to £623,590.
The company now owes SFP £1,193,177 for trade debt and services provided, according to the report from administrator Danny Allen.
However, the administrators have been advised that Saltire is likely to enter insolvency proceedings and is unable to discharge this liability.
Consequently, no funds have been expended on pursuing the debt, and the administrator does not expect any recovery based on available data.
The report also revealed that SFP owned fish processing equipment located at Saltire, which valued at £45,000. After negotiations, Saltire offered £37,500 for the equipment, which the administrator accepted, completing the sale on April 5, 2024.
Saltire Salmon were unavailable for comment when contacted by SalmonBusiness.
