Leading salmon farmer back in the black

The Fish Site
by The Fish Site
3 November 2006, at 12:00am

UK - Shetland's largest salmon producer has reported a swing to the black after restructuring debt and price recovery in the industry.

Hjaltland Seafarms, the Norwegian-owned operator of salmon farms and a processing plant, recorded a pre-tax profit of £8 million in 2005, compared with a loss of £3.2m the year before, after a £3.5m debt write-off, newly-filed accounts reveal.

The write-off followed an agreement with the Crown Estate and bankers after several of its subsidiaries were separated from the company. At operating level the company recorded a profit of £6.2m, compared with a loss of £1.3m in 2004, as turnover increased 28 per cent to £27.4m, while the cost of sales fell.

With six farms and a processing unit, Hjaltland is believed to be the third-largest salmon producer in Scotland, turning out more than 20,000 tonnes of gutted salmon a year. It employs around 150 staff.

The directors' report said strong salmon prices and support from bankers and creditors had led the company back into profitability and the position remained strong.

Source: The Scotsman