Annan, Scotland- and Miami, Florida, U.S.A.-based St. James Smokehouse has nixed plans to build a “bespoke, state-of-the-art production factory” on a site in Gretna, Scotland, it purchased back in 2017, citing Brexit complications.
The company said it has decided to repurpose the plant and associated machinery purchased during 2017 and 2018.
“Unfortunately, with the advent of Brexit and the associated complications/delays it produced, St. James Smokehouse (Scotland) Ltd. has taken the decision to re-purpose the plant and machinery purchased during 2017 and 2018 at a cost of GBP 1 million [USD 1.3 million, EUR 1.1 million] to be used at the Annan site. Also, at the end of 2018, the company made the decision to purchase a new and complete filleting line at a cost of GBP 956,000 [USD 1.2 million, EUR 1.1 million] to replace the existing line. Thus enhancing the company’s strength in an increasingly competitive market,” St. James Smokehouse said in its annual report, dated 31 December, 2018.
A decrease in earnings for St. James’ Scotland and U.S. smokehouses was observed, in part, due to an increase in raw materials, the company said. Turnover for the family-owned company fell by 6 percent from GBP 15.6 million (USD 20.7 million, EUR 18.6 million) in 2017 to GBP 14.6 million (USD 19.4 million, EUR 17.4 million) in 2018, a shift the company attributed to changing attitudes in the Asian market. The company’s U.K. income also declined when a "major supermarket had three areas pulled,” with product sales prices deterring some customers, according to the firm.
In 2019, St. James Smokehouse has been greeted with brighter outcomes, it said. The first half of the year saw income rise 9 percent, by over GBP 500,000 (USD 665,673, EUR 596,505), compared to 2018.
"It is hoped this increase will continue throughout the remainder of 2019," the company said in its report.
Two main income streams, North America and Europe, have increased for the company in 2019. Large promotions for national supermarkets in the U.K. are also expected to boost revenue, St. James noted. For the first six months of 2019, net profit after tax reached 16.5 percent above 2018 levels, the firm added.
St. James Smokehouse produces a variety of smoked salmon products, among them Saint Pure Salmon, which took home the Seafood Excellence Award for “Best New Retail” in March during the 2019 Seafood Expo North America in Boston, Massachusetts, U.S.A. As of Tuesday, 7 May, the product received the Seafood Excellence Global special award for “Retail Packaging.”
Photo courtesy of SeafoodSource/Brendan Maher
