Profits at fish processor Errigal Seafood decrease by 51%

Pre-tax profits at one of the country’s largest fish processors Errigal Seafood decreased by 51% to €216,501 in 2013.

Newly filed accounts for Earagail Eisc Teoranta show that the firm recorded the drop in profits in spite of increasing revenues by 4% or €935,000 from €24.076m to €25.011m.

According to the directors’ report for the 12 months to the end of December 2013, “the business delivered a positive set of results in an extremely challenging economic climate”.

The directors’ report adds that “despite a very challenging global economic backdrop, the business performed reasonably well.

The business increased its range of export markets and further increased its range of product offerings”. The accounts show that the firm’s revenues were boosted by a significant increase in export trade to ‘rest of the world’ countries.

In 2013, the firm sold more than double to ‘rest of the world’ countries at €8.7m compared to the €4.2m it sold to those countries in 2012.

Exports to Europe dipped by 18%, going from €19.65m to €16m, while sales in Ireland increased by 70% from €140,735 to €239,403.

The profit takes account of non-cash depreciation costs of €672,513, while research and development costs came to €71,470.

The average number of people employed by the firm, in 2013, reduced from 155 to 144 with 131 engaged in production and 13 in administration.

Employment costs at the firm reduced by 8% from €4.3m to €3.94m. Emoluments to directors, including pension contributions, increased marginally from €234,011 to €235,161.

The accounts show that the firm’s cost of sales increased from €20.25m to €21.91m with administrative expenses reducing from €97,9597 to €802,602.

A note attached to the accounts states that the company has received capital grants of €301,115 in the five years to December 31, which may become repayable if certain circumstances set out in the grant agreements occur.

The firm’s shareholder funds at the end of December 2013 stood at €5.56m.

The profit in 2013 reduced the firm’s accumulated losses from €744,202 to €527,701. The company’ cash reduced from €275,520 to €208,640.