ADRD Investments, the United Kingdom-based parent company of Sykes Seafood, reported that its 2023 profit before tax took a hit from higher interest rates, inflationary pressures, and exchange rates.
The company, which supplies chilled and frozen seafood across the U.K. and Europe and operates Sykes Seafood, Big Prawn Co., and Klaas Puul – via an acquisition by Sykes in 2019 – posted GBP 347.7 million (USD 437.8 million, EUR 404.5 million) in sales for FY 2023, up 42 percent from the GBP 245 million (USD 308 million, EUR 285 million) posted in 2022. The company’s gross profit also increased, reaching GBP 71.2 million (USD 89.6 million, EUR 82.8 million), up from GBP 56.5 million (USD 71.1 million, EUR 65.7 million) in 2022.
The company’s underlying earnings before interest, taxes, depreciation, and amortization also increased to GBP 23.9 million (USD 30 million, EUR 27 million) year over year, up from GBP 19.3 million (USD 24.3 million, EUR 22.4 million).
The company’s profit before tax, however, dropped from GBP 10.1 million (USD 12.7 million, EUR 11.7 million) in 2022 to GBP 1.7 million (USD 2.1 million, EUR 1.9 million) in 2023.
“The company has seen record sales in the year due to organic growth, the acquisition of Big Prawn, and the full-year effect of Ruskim Seafood Limited,” ADRD Investments said. “However, foreign exchange movements, inflationary pressures, and increased interest rates have seen profit before taxation fall.”
Sykes Seafood announced its acquisition of Ruskim Seafood Limited in December 2021. According to ADRD’s results report, since that time, Sykes and Ruskim signed a 20-year lease for a new storage and distribution facility in Warrington, U.K., which became operational in April 2023. The two companies also began the full integration of trade and operations in April 2023, and as of November 2023, the group was consolidated into a single operational and distribution platform.
Sykes also acquired Big Prawn in January 2023, following the latter company entering administration, and in September 2023, local media reported the company decided to close Big Prawn’s processing site in Melton Constable, U.K.
In addition to both Ruskim and Big Prawn, ADRD acquired the entire share capital of Ice Cool Food Trading in April 2022, via a share-for-share exchange.
In its strategic report, the company said that the availability of raw materials will need “careful management” as its volumes and species requirements continue to grow but that it is mitigating this through a diverse supply chain which covers 120 species from more than 150 suppliers. It added that supply chain challenges caused by sanctions against Russia have been mitigated through securing alternate supplies.
“The directors believe that the company is well-placed in terms of strategic and market position to maximize its ability to generate sales and satisfy consumer demand,” ADRD said. “Consolidating operations into the new state-of-the-art distribution center in Warrington gives the company a strong platform for growth.”
