High end smoked and fresh salmon (and other seafood) supplier to COVID-19 hit Michelin restaurants, as well as retailers Selfridges and Globus, is under pressure.
Based from Loch Fyne, Argyll, Scotland, the company – which started the Loch Fyne Oyster Farm in 1978 – posted its results for the year ended October 2019.
Loch Fyne is a subsidiary of the private equity group Scottish Seafood Investments, which is registered in the British Virgin Islands. The business is separate from the pub chain Greene King-owned Loch Fyne seafood restaurants which closed down dozens of its locations last month.
Loch Fyne Oysters’ turnover was GBP 14 million in 2019 and GBP 13.9 million in 2018. It posted an operating loss of GBP 0.7 million in 2019, compared to GBP 0.6 million the year before.
Last year, the company said that it had started trading with the USA for the first time in 15 years, pinning its hope on this segment as part of its growth strategy for the next five years.
But this year the company said that “as a result of the pandemic, the group has seen its export sales decrease significantly. Whilst the group has benefited from an increase in demand in the UK, it has reduced its operating cost base, taken advantage of Government support measures where available, and managed its working capital and cash flow closely to ensure maintained sufficient financial resources throughout”.
It added that the group “meets its day to day working capital requirements through existing invoice finance facilities and loans from its parent company”.
Loch Fyne Oysters added that despite the losses, the directors have obtained reassurances that the “group’s parents will continue to provide such financial support as necessary to facilitate the development and growth of the business and to meet long term objectives of its investors”.