Sealord's annual profits take a massive dive

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Source:

NZN

Sealord's annual profit fell 19 per cent largely on an impairment charge of its British-based Sealord Caistor processing business, which was sold to shareholder Nippon Suisan Kaisha.

Source: 1 NEWS

Net profit fell to $18.5 million in the year ended September 30 versus $22.9m a year earlier, according to holding company Kura's financial statements, lodged with the Companies Office.

Discontinued operations contributed a loss of $3.2m to the bottom line, including an impairment charge of $4.9m.

Sealord's figures were better at an operating level with a 5.4 per cent gain in earnings to $28m as expenses continued to be curbed.

The Nelson-based company, jointly owned by iwi fishing group Moana New Zealand and Japan's Nissui, paid dividends of $9.2m in 2017 versus $4m in the prior year.

Revenue from continuing operations at New Zealand's second-largest fishing company shrank to $325.8m from $337.3m in the prior year due to the slimmed down business. Gross margins narrowed slightly to 28 per cent from 28.5 per cent in the prior year.

In recent years Sealord has gone through a period of exiting unprofitable businesses which it deemed "unsustainable".

The decision to sell its interests in Sealord Caistor is consistent with Sealord's focus on operational performance, the company said in a release.

"Going forward, the group now has a more sustainable margin structure," chief executive Steve Yung said in a statement.

Construction of Sealord's $70m purpose-built factory trawler - the first new design in New Zealand's deepwater fleet in over 20 years - remains on track for delivery in May 2018, it said.

In September, Sealord said it was recruiting for 80 new positions for the trawler.

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