Wednesday, February 22, 2012
A sharp increase in the price of fish resulted in a Dingle-based fish processing firm almost doubling its pre-tax profits in 2010.
Accounts recently filed with the Companies Office by family-owned O’Catháin Iasc Teoranta show the firm increased its pre-tax profits by 83% to €978,894 in the 12 months to the end of December 2010.
This came after revenues at the firm rose by 25% from €8m to €10m. The increase in business resulted in the company employing 10 people to lift its workforce to 60.
Managing director of O’Catháin Iasc Teo, Ricky Kane, said he was happy with how the company performed in 2011 and 2010. He said profits and revenues last year were in line with 2010 figures.
"It is a cyclical business," said Mr Kane. "The price of fish increased by 20%-30% in 2010 because of global demand and that is the main reason behind the increase in business."
He pointed out that, from 2004 to 2006, the company lost money.
"We found it very hard to make money back then. All food companies are doing well at the moment and we are happy with how things are going."
However, Mr Kane said the price of fish is very volatile.
"Prices for white fish are on the floor at the moment. Hake cost €3 a kilo in December and now it is €1.50 per kilo.
He said the firm employs 60 staff at its processing plant during the winter and 30 over the summer.
"On a busy day, we would process 100 tonnes of fish and, on a quiet day, the number would be down to 60 tonnes."
Mr Kane said that 90% of the fish processed is exported and includes hake, cod and whiting, along with herring, mackerel and sardines.
The firm has a 45% share in a German-based canning plant that employs 180 people and also runs businesses in Tralee and Dingle.
The accounts show that the company’s investment in its German factory was valued at €800,000.
Mr Kane said that the main challenge facing the Dingle plant is securing sufficient quantities of fish. "Minister [Simon] Coveney is doing a good job, but we would like to see a greater increase in the quota for white fish."
Staff costs at the firm increased in 2010 to €947,806. The firm had €5.8m in accumulated profits at the end of 2010 and its shareholder funds of €6.2m included €3.1m in cash.
The profit takes account of €237,001 in non-cash depreciation charge.
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