Peterhead seafood firm scaling up on back of eight-figure bank funding

A fish-processing business in Peterhead has received an eight-figure funding package as it looks to scale further, including the targeting of new international markets, while increasing its sustainability.

Denholm Seafoods, which says it champions Scotland’s high-quality, sustainable seafood, has reeled in the sum from HSBC UK, backed by UK Export Finance (UKEF). The capital will support the bid by the open-sea fish business, which processes herring and mackerel caught from sustainable fisheries, to expand in European and Asian markets.

The funding package was backed by a £15 million general export facility backed by UKEF, the UK Government’s export credit agency, which aims to ensure that no viable UK export fails for lack of finance or insurance.

'By utilising this funding, we’re excited to enter new markets and grow in existing ones,' says the firm, which processes the likes of mackerel. Picture: Tracey Paddison.

UKEF said the scheme, which was launched in December, has already provided more than £120m for businesses across the UK, and in this case is allowing Denholm and HSBC UK “to take a longer-term view” while underpinning the fish firm’s growth aspirations.

Allan Stephen, director at Denholm Seafoods, said: “Our growth plans are ambitious, and, by utilising this funding, we’re excited to enter new markets and grow in existing ones. It is the quality of our product coupled with this additional funding that will afford us this opportunity.

“As we invest in the future of Denholm Seafoods, we intend to progress the sustainability of our operations, by reducing our environmental impact as we drive the growth of our business forward.”

Mike Freer MP, the UK Government’s Minister for Exports, said: “Scottish seafood is renowned around the world for its quality and focus on sustainability – and I’m delighted that UKEF is helping Denholm grow and sell more to the world.

“We export iconic food and drink products to over 200 countries, supporting jobs and growth, promoting the Union and helping to level up every part of our country.

“With the help of UKEF’s popular new general export facility, we hope to see British products in every supermarket in the world.”

Passion

Also commenting was Stephen Leckie, senior corporate banking manager at HSBC UK, who said: “It’s fantastic to help Denholm Seafoods expand the strong export arm of its business. The Scottish food and drink sector is a core focus of HSBC UK; we share Denholm Seafoods’ passion and drive for bringing quality Scottish produce to new markets.

"We look forward to seeing the company’s next chapter as it embarks upon its new investment strategy.”

Denholm Seafoods says it processes fish caught from sustainable fisheries by its local fishing partners in the North-east Atlantic, and its products are delivered fresh or frozen, with 80 per cent currently exported and the rest supplying major retailers in the UK market.

The firm is part of the Denholm Group, which was founded as a ship agent and factor by James Denholm in 1866, who was joined in the business by his brother John in 1869.

It is now a fifth-generation family business with more than 1,000 staff, and operates in four sectors, namely shipping, logistics, seafoods, and industrial services.

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