Rising prices for fish led to a tightening in margins by County Durham-based frozen fish supplier Collins Seafoods, latest accounts have shown.
The company saw turnover increase by £2.9m to £50.3m for the year to 30 June. However, operating profit fell by almost 19% to £1.3m, while pre-tax profits fell by 20% to just under £1.3m.
The business, which supplies frozen seafood into wholesale and retail across the UK and Ireland, put the fall in profits down to the rising price of stock, which it was “not always able to pass on” to customers, accounts filed at Companies House said.
However, directors were “pleased” with the company’s 6% increase in turnover on the previous year, particularly “as the market over both 2015 and 2016 has proved competitive”, said MD Richard Collins in the company’s annual report.
Looking ahead to 2017, Collins said the impact of the EU referendum on the pound would lead to a “more challenging” financial year, which would lead to an increase in the price of the supplier’s products.
“Our aim is to continue to focus on marketing, in the hope to strengthen our position in the market by improving our brand awareness.”